45 Day Identification Strategy

The 45-day identification window starts on the day the relinquished property closes, not on the day the investor gets around to thinking about replacement property, and it runs on calendar days including weekends. In Detroit, where good replacement assets in the right corridor or the right neighborhood do not sit on the market long, that window works best treated as a fixed 45-day build schedule with milestones, not an open-ended search.

Backing Into the Schedule From Day 45

We map the identification window backward from the deadline the same way a project schedule gets built backward from a completion date: the written notice has to reach the qualified intermediary by day 45, which means the underwriting and legal description work on the final list needs to be done by roughly day 40, which means touring and financial review on serious candidates needs to wrap by day 30, which means the initial screening of the market needs to start within the first week after closing. Waiting until week three to start touring buildings in Detroit routinely means settling for whatever is still available rather than what actually fits the reinvestment goal.

What a Valid Written Identification Actually Needs

A written identification has to unambiguously describe each candidate property, and the four items below cover what that notice needs to hold up if it is ever reviewed:

• Full street address or legal description sufficient to identify the specific parcel
• Signed and dated notice delivered in writing to the qualified intermediary, rather than only discussed by phone or email
• Delivery inside the 45-day window measured from the relinquished-property closing date
• A value figure for each property if the investor is relying on the 200 percent or 95 percent identification rules

A verbal description or an informal text message naming a property generally will not satisfy the requirement on its own, which is why we build the actual notice language early and confirm delivery to the qualified intermediary rather than assuming a conversation counts as identification.

Detroit-Specific Sourcing Inside the Window

Depending on the asset class, the sourcing pool inside the city looks different from the suburban submarkets, which get their own dedicated review elsewhere. Industrial and flex candidates cluster along the I-94, I-75, and I-96 corridors where automotive-supplier tenants have historically driven demand; office and multifamily candidates concentrate in downtown and Midtown, where recovery-driven leasing has changed pricing on buildings that sat vacant a few years ago; and net-leased retail candidates tend to sit along the mile-road corridors. Each pool has its own pace, and a 45-day window that assumes one pace across all three usually runs short.

Revising the List Before It Locks

An investor can revoke or revise an identification at any point before day 45 without penalty, which means the working list should stay a live document, not a final decision made on day 10 and then forgotten. We keep the list open to substitution as new information comes in from tours, lender feedback, or title review, and only treat it as final once the notice is actually delivered to the qualified intermediary.

This flexibility matters most in a market where a property that looked strong on day 8 can lose appeal after a day-20 tour turns up deferred maintenance, or a lender's preliminary read on financing changes the math on a property that once looked affordable. Treating the list as revisable, rather than locked the moment it is drafted, protects the investor from committing to the first reasonable option out of fear of missing the deadline.

Handing the List to the Closing Team

Once the identification notice is filed, the same document becomes the starting point for the 180-day closing schedule, so the property descriptions, values, and any backup properties named need to be accurate enough to hand directly to the lender and title team without rework. A sloppy or rushed identification on day 44 tends to create cleanup work during the closing phase that a properly scheduled 45 days would have avoided.

Common 1031 Exchange Questions

When does the 45-day identification clock actually start?

It starts on the closing date of the relinquished property, counted in calendar days, not business days. There is no extension for weekends or holidays that fall inside the window.

Can I identify a property I have not toured yet?

Yes, the rule only requires an unambiguous description delivered on time, not a completed inspection. Many investors identify a property provisionally and continue diligence afterward, though relying on an unvetted property as the only option carries obvious risk.

What happens if I miss the 45-day deadline?

Missing the deadline generally ends the exchange, and the deferred gain from the START EXCHANGE REVIEW becomes taxable in that year. There is very limited relief for missed deadlines, so investors should treat day 45 as a hard date and confirm any unusual circumstances with a qualified intermediary immediately.

Can I change my identified properties after filing the notice?

Only before day 45. Any revocation or replacement of identified property has to reach the qualified intermediary before the window closes; changes after day 45 are not permitted under the identification rules.

Should I identify Detroit properties I am not sure I want?

Naming a backup property, even one that is not the first choice, is common practice specifically because it protects the exchange if the preferred property falls through during closing. The tradeoff is added diligence work, which is why the identification list should stay realistic rather than padded.

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