The 45-day identification clock starts on the closing date of the property you sold, and it runs on calendar days, weekends and holidays included. On Long Island that clock is often ticking while title is still clearing municipal searches on the sale side. Waiting until week five to put anything in writing is how investors run out of runway.
What the Written Notice Has to Say
The identification has to name the property clearly enough that a stranger could find it: a legal description or a full street address, not a neighborhood or a general area. It has to be signed and delivered, in writing, to the qualified intermediary or another party to the exchange who is not your agent or a disqualified relative. A voicemail to your broker with an address in it does not satisfy the rule on its own.
Investors pick from three identification paths: the three-property rule (up to three properties, any value), the 200 percent rule (any number of properties, combined value capped at twice the relinquished property's sale price), or the rare 95 percent rule (unlimited properties, but you must actually close on 95 percent of the identified value). Whichever path is chosen, the list can be revoked or replaced right up until midnight on day 45, and not one hour after.
Search Order We Run First on Long Island
- industrial space along the LIE and Route 110 corridor through Melville and Hauppauge
- retail parcels fronting Old Country Road and Sunrise Highway
- medical office near the Northwell hospital and outpatient campuses
- multifamily buildings within walking distance of an LIRR station
- a backup DST allocation held in reserve in case financing or diligence slips
Why the Long Island Clock Runs Tighter Than It Looks
Long Island property tax bills can move enough between a broker's first pass and a signed contract to change the underwriting on a candidate property, so the list needs a tax-adjusted number attached to every address, rather than only an asking price. Built-out submarkets like Nassau's village centers and Suffolk's older industrial parks don't have much new supply sitting open, which means broker calls need to start in week one, not week three. Anything that needs a variance or a use change from a town or village board should be treated as a backup, not a lead candidate, because that review calendar does not care about your exchange deadline.
Where Lists Usually Fall Apart
A description written loosely, such as "a property in Suffolk County," fails the identification requirement outright. Notice sent to a broker instead of the qualified intermediary or a proper party to the exchange fails too, even if the broker forwards it the same day. And if sale proceeds land in the investor's own account for even a short window before the identification is filed, that is constructive receipt, and it can undo the exchange regardless of how clean the property list looks.
Who Has to See the List Before Day 45
The qualified intermediary needs a working draft well before day 45, not a final version delivered at the deadline. A lender needs enough lead time to run a preliminary debt-service look at each candidate before a purchase contract gets signed, because financing that falls apart in week 30 is worse than finding out in week two. A CPA should check basis and boot exposure on each candidate before it's added to the list, since a property that looks great on price can still create a taxable cash-out. If more than one owner is on title, all owners need to agree on the same replacement path before day 45, not after.
Common 1031 Exchange Questions
How many days do you actually have to identify property?
Exactly 45 calendar days from the closing date of the property you sold, with no extensions for weekends or holidays. If day 45 lands on a Sunday, the deadline does not move to Monday. Mark the date escrow closes, not the date you expect paperwork to catch up.
Can you change your mind about which properties are on the list?
Yes, up until midnight on day 45 you can revoke or replace any property on the list, or add more within the rule limits you've chosen. Once day 45 passes, the list is locked and no further changes are allowed, no matter how good a new opportunity looks.
Does the identification list have to go to your broker or your QI?
It has to go in writing to the qualified intermediary or to another proper party to the exchange, not to your real estate agent alone. A text message to your broker with an address in it does not satisfy the requirement by itself.
What happens if you only find two good replacement properties?
You can identify up to three properties under the three-property rule regardless of value, so two candidates is fine if you're comfortable with the coverage. If you want backup candidates beyond three, the 200 percent rule lets you add more as long as combined value stays under twice what you sold.
Should you talk to your CPA before you submit the list?
Yes, before the list is final, not after it's filed. A CPA can flag boot exposure, debt replacement issues, and basis questions that change which candidates actually make sense, and that conversation is far more useful before day 45 than after closing.
