Every 1031 exchange runs on two federal deadlines, and the first one is the shorter and less forgiving of the pair. From the day the relinquished property closes, an investor has 45 calendar days to put a written list of candidate replacement properties in front of the qualified intermediary. Miss that window and the exchange is over regardless of how much progress was made on the search or how close a deal was to signing. Understanding the mechanics of the rule, not just its existence, is what keeps an Orlando investor from losing a deferral to a technicality.
When the Clock Starts and What Stops It
The 45 days begin on the closing date of the relinquished property, the same date that starts the separate 180-day exchange period. There is no mechanism to pause, extend, or restart the count for a slow closing, a holiday, or an investor who was out of the country when the sale went through. The only broadly available extensions come from federally declared disasters, and those are narrow, specific to the affected counties, and not something a filing should be built around. Treat day one as fixed the moment the relinquished sale records.
The Three-Property Rule
The default identification method lets an investor name up to three replacement properties on the written list, with no limit on their combined value. Most Orlando exchanges use this rule because it is simple and covers the common case: an investor selling one property and buying one replacement, with two backups named in case the primary candidate falls through in underwriting or title review. The properties must be described unambiguously, typically by legal description or street address and parcel number, and the qualified intermediary should confirm the format it expects before day 45 arrives.
The 200% Rule and the 95% Rule
- 200% rule: identify more than three properties, as long as their combined fair market value does not exceed 200% of the relinquished property's sale price
- 95% rule: identify any number of properties of any combined value, but the investor must actually acquire at least 95% of the total identified value by the end of the exchange
- The 95% rule is the least forgiving of the three and is generally used only when an investor is naming a long list of candidates and is confident enough in the pipeline to accept that near-total acquisition requirement
- Exceeding the 200% ceiling without qualifying under the 95% rule invalidates every property identified beyond the first three
Why Central Florida Timelines Compress the Search
An investor selling a relinquished property in Winter Park or along the I-4 corridor is often searching a market with fast-moving industrial and multifamily inventory, where a strong listing can go under contract within days. Forty-five calendar days does not leave room to start the search after closing; the realistic approach is to have broker outreach, financing pre-screens, and a shortlist already underway before the relinquished sale even records, so the identification letter reflects vetted candidates rather than whatever was still available in the final week.
What a Valid Identification Letter Needs
The letter has to be in writing, signed by the investor, and delivered to the qualified intermediary or another party involved in the exchange before midnight on day 45. Verbal mentions to a broker or a draft sitting in an email outbox do not count. Each property needs an unambiguous description, and while amending the list is allowed up until the deadline itself, nothing can be added or swapped once day 45 passes, even if a better property surfaces on day 46.
Common 1031 Exchange Questions
Does the 45-day period run on calendar days or business days?
Calendar days. Weekends and holidays count toward the 45, and there is no routine extension for a relinquished closing that ran late.
Can I change my identified properties after day 45?
No. The list locks at midnight on day 45. Any changes, additions, or substitutions have to happen before that deadline.
Which identification rule do most Orlando investors use?
The three-property rule, since it covers the common case of naming a primary candidate and two backups without any combined-value ceiling to track.
What happens if I identify more than three properties without qualifying for the 200% or 95% rule?
Any properties named beyond the first three become invalid, and only the first three identified are treated as properly identified for the exchange.
Is a verbal mention of a property to my broker enough to identify it?
No. Identification has to be a signed written document delivered to the qualified intermediary or another qualifying party before the 45-day deadline.
Can the 45-day window be extended for a disaster or personal hardship?
Only through a narrow, formally declared disaster extension covering specific counties. There is no general hardship extension available to an individual investor.
