The following definitions apply to the terms and references below:
Relinquished Property – This is the property you will sell to start the exchange (it is sometimes referred to as the “first leg” property). Your Relinquished Property can consist of more than one property.
Replacement Property – This is the property you will acquire to complete the exchange (it is sometimes referred to as the “second leg” property). Your Replacement Property can consist of more than one property.
Sale Price – This refers to the sale price of the Relinquished Property. If there will be more than one Relinquished Property, the Sale Price is the aggregate sale prices of all of the Relinquished Properties.
Basic Fee – This is our fee for obtaining necessary information, preparing the Exchange Agreement, assignment forms, replacement property identification form and other paperwork, dealing with the closing agent who is handling the closing of the sale of your Relinquished Property, obtaining the funds to be escrowed, dealing with the closing agent who is handling the closing of the purchase of your Replacement Property including delivering funds to the closing agent, etc. We collect the Set-Up Fee by deducting it from the sale proceeds of the Relinquished Property when we receive the funds to be placed in escrow from the closing agent. If we will not actually be receiving the funds because, for example, the exchange will be simultaneous, we will request that this fee be placed on the closing statement for the Replacement Property so the closing agent can send us a check for the Basic Fee.
Additional Property Fee – This fee only charged for each Relinquished Property and each Replacement Property used to complete the exchange that is more than one property each, so in most exchanges it will not apply (one Relinquished Property exchanged for one Replacement Property). However, any Additional Property Fee which would otherwise be applicable in multi-property exchanges is waived for any Relinquished Property or Replacement Property closing for which Riddell Law Group (www.rlglawfirm.com) acts as closing agent and issues the title insurance. If applicable because there is more than one Replacement Property (and the subject Replacement Property is not being closed by Riddell Law Group as mentioned above), the Additional Property Fee will be on the closing statement for the applicable Replacement Property so the closing agent can send us a check for the fee following closing. For additional Relinquished Properties, the applicable Additional Property Fee(s) will be collected in the same manner as the Basic Fee. This fee is designed to compensate us for dealing with multiple closing agents, so does not apply where there are multiple Relinquished Properties all of which are being sold at one time in one closing or multiple Replacement Properties all of which are being purchased at one time in one closing.
Rush Fee – Sometimes we are asked to drop what we are doing and prepare for an exchange on short notice. This requires reallocation of resources, and may involve overtime. So, for exchanges where we do not receive the filled out Questionnaire more than 48 hours before the closing is scheduled for the first of the Relinquished Properties, this fee will be added, and collected in the same manner as our Basic Fee.
|Sale Price||Under $300,000||$300,000 to $600,000||over $600,000 to $1,000,000|
|Property Fee(s)||Additional $250 will be added per additional property in multi-property exchanges, unless the fee is waived because the closing (including issuance of title insurance) on any such additional property is done by Riddell Law Group.|
|Escrow Fee||$250 to escrow your funds in a separate interest bearing account with the interest accrued thereon payable to you instead of us.|
|Rush Fee||$250, where applicable per above, in addition to all other applicable fees.|
|Reverse Exchange||$1,000 Surcharge (See Reverse Exchange info here.) $1,000 reduced to $500 if reverse exchange documents have been completed but then it converts to a regular exchange because the Relinquished Property sells first.|
Example: exchanger wishes to sell two properties (rental duplex for $160,000, vacant investment lot for $95,000), for a total sale price of $255,000, and we receive the order and filled out Questionnaire more than 48 hours before the first Relinquished Property closing. Riddell Law Group will not be doing any of the closings. After costs of sale, mortgage payoffs, etc., $150,000 will be placed in escrow pending investment in one replacement property. exchanger is “trading up” to a ten unit apartment project with a purchase price of $900,000. Fees would be $700 Basic Fee, $250 Additional Property Fee and $250 Escrow Fee, for a total Intermediary fee of $1200 Note: all fees are earned upon receipt, no refunds.
Note: Customized fees will be provided for exchanges:
(a) where the sale price(s) of the Relinquished Property will exceed $1,000,000; or
(b) that are not standard simultaneous, delayed or reverse exchanges such as build-to-suit exchanges, construction exchanges, etc.