Real Estate Investors -- Avoid taxes with a 1031 Exchange when you sell investment property and buy replacement property or properties. The 1031 Exchange MUST be in place at or before settlement of your Relinquished Investment Property. You have 45 Days from the settlement of your rental property to identify one or more Replacement Rental Property and 180 Days to close on the new Investment Property(ies). You may sell one and buy more than one. You may sell a house or condo or townhouse and buy other commercial or business property and vice versa.