Delayed exchange is a type 1031 exchange where the property exchange takes place through an intermediary. Unlike a basic 1031 where one property is swapped for another, a property owner will give the property to an intermediary to sell, and the owner has 45 days to designate at least one property to exchange the sold property for. Afterwards, the intermediary must close on at least one of those properties within 180 days and give any remaining money back to the owner. Delayed exchanges give property owners more time and flexibility to exchange property and still postpone capital gain taxes like quicker 1031 exchanges.
[Last updated in July of 2021 by the Wex Definitions Team]