Accreditation - A process whereby the Placement Agent determines a prospective investors' suitability for potential investments.

Blown Exchanges - As Miriam Webster defines "Blown", "to foul up hopelessly". In reference to a Section 1031 exchange it is an initiated (relinquished property sold) yet not completed (usually a replacement property not acquired) exchange.

Boot - Property given or received which is not "like-kind". In exchanges there are two types of Boot, either cash boot or mortgage boot.

Delayed (a.k.a Starker) Exchange - A term used to describe delayed exchanges where replacement property is received after the sale/transfer of the relinquished property. "Starker vs. Commissioner" established the delayed exchange concept. The term "Starker Exchange" is used as another way of referring to delayed, deferred or any other non-simultaneous exchange.

Exchange Agreement - A written agreement between an exchanger and a Qualified Intermediary requiring that the Qualified Intermediary acquire and transfer property from exchanger to buyer and acquires and transfers property from seller to exchanger.

Exchange Period - The period during which an exchanger must complete the acquisition of replacement property. An exchange period begins upon the transfer of the relinquished property and ends on the earlier of 180th day thereafter or the exchangers tax return due date for the year the relinquished property was transferred.

Fractional Ownership Offerings - Also known as TIC (tenant-in-common) offerings, is used to describe a method/product whereby property may be purchased as co-owners and, if properly structured, qualify as replacement property for a Section 1031 Exchange.

Held for - A critical component of a Section 1031 exchange is an exchanger must sell property that is "held for" income or investment purposes and acquire replacement property that will be "held for" income or investment purposes.

I.D. (Identification) Period - The period during which an exchanger must identify replacement property. An I.D. period begins upon transfer of relinquished property and runs until midnight of the 45th calendar day.

Institutional Quality Real Estate - Real estate with certain features (tenant, building, lease, etc.) and benefits that help distinguish it as a desirable investment.

IRC Section 1031 - The section of the Internal Revenue Code that enables investment property owners to defer capital gains and depreciation recapture when selling qualifying property and reinvesting in accordance with Section 1031 rules.

Like-Kind Property - Real property is generally "like-kind" to all other real property. "Like-kind" refers to how the property is held by an investor, not necessarily the type of property.

Non-Recognition of Capital Gain - The difference between consideration received for property and the adjusted basis is "realized gain", yet realized gain is not taxable until it is recognized. If gain is not recognized in the year realized it is said to be deferred.

Placement Agent - A broker/dealer licensed under applicable SEC & NASD regulations.

Qualified Intermediary (QI) - Also known as an accommodator or a facilitator. The party who, for a fee, aids taxpayers in completing their exchange by acquiring and selling property in an exchange.

Relinquished Property - The property that is being sold by an exchanger. Also known as the exchange property or the downleg property.

Replacement Property - The property (or properties) acquired by an exchanger. Also known as the acquisition property or the up leg property.

Simultaneous Exchange - An exchange where the exchanger transfers relinquished property and receives replacement property simultaneously.

Tenant-In-Common (TIC) - is a way of sharing ownership of property among two or more persons in which each TIC holds an undivided interest in the entire property.