Open1031 All Flows
Flow Map — Reverse Exchange

Reverse 1031 IS Fully Automatable.
Every Step Has a Deterministic Rule.

Rev. Proc. 2000-37 QEAA safe harbor — EAT parks title while you sell the relinquished property. 8 Vectr workflows. 3 durable deadline clocks. 0 steps that require human intuition. All approval gates are authorization, not judgment — exactly what multi-party Vectr workflows provide. Cross-link: Reverse Automation Surface.

Exchange-Last is the default and most common scenario. Exchange-First is shown for completeness.
Vectr Workflows 8 +6 reused from forward
Durable Clocks 3 5-day biz · 45-day · 180-day
Documents Generated 17 vs 10 forward
Approval Gates 5 authorization, not judgment
Steps Requiring Human Intuition 0 fully automatable

Exchange-Last — 7-Step Hub Sequence (sell relinquished after replacement is parked)

1
EAT Setup Form SPE-LLC
Open EAT escrow Reverse eat-entity-formation
2
Purchase into EAT Replacement deed
recorded in EAT name Purchase Day 0 anchor eat-parking-arrangement-setup
3
Sign QEAA Parking agreement
+ EAT loan docs Reverse 5 biz-day eat-agreement-generate reverse-qeaa-5day-watcher
4
ID Relinquished Identify property
to be SOLD (inverse!) ID Hub 45-day reverse-45day-relinquished-id-watcher
5
Sell Relinquished Route proceeds
Day 0–180 Sales 180-day max esign-orchestration escrow-wire-routing
6
EAT Transfer-Out Deed + loan repay
multi-party gate Disbursement Before Day 180 eat-transfer-out reverse-180day-parking-watcher
7
IRS Form 8824 §1031 reporting
basis calc automated IRS Auto-generated form-8824-generate

3 Durable Deadline Clocks — All Anchored on EAT Deed Recorded (Day 0)

5 Business-Day QEAA Window
Anchor: EAT deed recorded · Workflow: reverse-qeaa-5day-watcher
5
business days to sign QEAA — the only business-day clock in the system
Correctness trap: this is business days, not calendar days. A naive calendar timer fires Day-5 block 2 days early across a weekend. reverse-qeaa-5day-watcher must skip Sat/Sun and federal holidays in its countdown predicate. Day 3 reminder fires; Day 5 escalation blocks further progress until QEAA is signed.
45-Day Relinquished Property ID
Anchor: EAT deed recorded · Workflow: reverse-45day-relinquished-id-watcher
45
days to identify which relinquished property will be sold
Inverse ID direction: in a forward exchange the ID hub lists the replacement to be purchased. In reverse it lists the relinquished property to be sold. The ID hub must use bodyVariant: identify-relinquished or it generates a Replacement Property Identification Notice — the wrong document — instead of the Relinquished Property Identification Notice.
180-Day EAT Parking Maximum
Anchor: EAT deed recorded · Workflow: reverse-180day-parking-watcher
180
days max for EAT to park the replacement title
Hard block at Day 179: if EAT transfer-out has not been initiated by Day 179, reverse-180day-parking-watcher fires a block notice and alerts QI staff. Day 150 + Day 170 warnings precede it. The exchange fails irrevocably at Day 180 — there is no grace period.

Implementation Correctness Traps — Reverse-Specific

Trap 1 — Deadline anchor is EAT acquisition, not sale close
In a forward exchange both clocks anchor on exchange.sale_closed (relinquished property transfer, not proceeds into QI escrow). In reverse, all three clocks anchor on eat-parking-arrangement-setup (EAT deed recorded). Reusing the forward anchor fires the 45-day and 180-day timers 30–90 days late — after the relinquished sale — which could allow an exchange that is already in violation to appear compliant. The eat-parking-arrangement-setup webhook from the deed-recording event is the sole correct trigger.
Trap 2 — ID hub bodyVariant must be identify-relinquished
The ID hub is shared infrastructure. Its default variant (identify-replacement) generates an IRS-compliant Replacement Property Identification Notice signed by the exchanger. In a reverse exchange the ID hub must declare bodyVariant: identify-relinquished so it: (a) labels the identified property as the one to be sold, not purchased, (b) routes the signed notice to reverse-45day-relinquished-id-watcher, and (c) generates the Relinquished Property Identification Notice. Using the wrong variant produces a document that the IRS will reject.
Trap 3 — QEAA watcher must count business days, not calendar days
The 5-day QEAA window is the only business-day clock in the entire Open1031 system. All other timers (45-day, 180-day) are calendar days per Treas. Reg. §1.1031(k)-1. reverse-qeaa-5day-watcher must skip Saturdays, Sundays, and federal holidays. A deed recorded on a Thursday yields a QEAA deadline on the following Thursday, not Tuesday. Firing the Day-5 block on a Tuesday would wrongly void an exchange that has until Thursday.
Why This Proves the Hub Shell Is Type-Agnostic
The reverse flow reorders hubs (Purchase before Sales), re-anchors all clocks, and adds 3 new Reverse-specific steps — yet it reuses the same ID hub, Purchase hub, Sales hub, Disbursement hub, and IRS hub components. The only changes are: (1) bodyVariant on the ID hub, (2) the deadlineAnchor field in the exchange config, and (3) the step-order array. This proves the hub shell renders from the exchange-type config array — not a hardcoded 6-hub list — and that Reverse is not a special-case build, it is the same engine with a different config.
Exchange-Last — Step-by-Step Detail Click any step to expand workflows & documents
Step 1 — EAT Entity Formation & Escrow Opening
Your QI forms (or arranges) the single-purpose EAT, an SPE-LLC (Exchange Accommodation Titleholder) that is a separate legal entity, to park the replacement property. The EAT cannot be the exchanger — this structural separation is what satisfies the constructive-receipt firewall.
Reverse Hub Automated QI initiates
WorkflowTriggerApproval GateDocuments
eat-entity-formationExchange created (reverse type selected)None — automatedSPE-LLC articles of organization, EAT escrow account opening docs, EAT operating agreement
Step 2 — Replacement Property Acquired into EAT (Day 0 Anchor)
The replacement property closes and deed is recorded in the EAT's name, not the exchanger's. This deed-recorded event is the single anchor point for all three durable deadline clocks. The exchanger funds the acquisition via a loan to the EAT (EAT loan documents generated here).
Purchase Hub Deadline anchor — Day 0 Exchanger funds loan to EAT
WorkflowTriggerApproval GateDocuments
eat-parking-arrangement-setupDeed-recorded webhook from EAT acquisition closeNone — starts both 45-day and 180-day durable timers automaticallyParking arrangement record; starts durable timer workers for 45-day and 180-day clocks
This event — eat-parking-arrangement-setup — is the deadlineAnchor for the entire exchange. All three clocks count from this timestamp. Do not confuse with the forward exchange anchor (exchange.sale_closed at relinquished property transfer).
Step 3 — Sign QEAA Agreement (within 5 Business Days)
The Qualified Exchange Accommodation Agreement must be signed by both the exchanger and the QI within 5 business days of the EAT deed recording — the only business-day deadline in the system. The watcher fires Day 3 reminders and Day 5 escalation/block.
Reverse Hub 5 Business Days Hard Deadline Exchanger signs QI countersigns
WorkflowTriggerApproval GateDocuments
eat-agreement-generateParking setup complete eventExchanger + QI each sign via DocuSignQEAA Agreement (PDF), EAT loan documents
reverse-qeaa-5day-watcherDay 0 timestamp (deed recorded)QI escalation on Day 5 if unsignedDay 3 reminder email/push, Day 5 escalation notice
Business-Day Counting Required
A deed recorded Thursday June 5 → QEAA deadline is Thursday June 12 (skip Sat/Sun twice). A naive +5 calendar-day timer would fire on Tuesday June 10, blocking a valid exchange 3 days early. The watcher must skip weekends and federal holidays.
Step 4 — Identify Relinquished Property (within 45 Days)
In a forward exchange the ID hub identifies the replacement to be purchased. In reverse it identifies the relinquished property to be sold. The bodyVariant must be set to identify-relinquished or the wrong Identification Notice is generated. The 3-property rule applies to the relinquished property list.
ID Hub — bodyVariant: identify-relinquished Day 45 Hard Deadline
WorkflowTriggerApproval GateDocuments
reverse-45day-relinquished-id-watcherDay 0 timestampNone for reminders; QI alerted Day 44; hard block Day 45Day 30 reminder, Day 40 reminder, Day 44 QI escalation; Relinquished Property Identification Notice (exchanger e-sign)
Inverse ID: The signed notice generated here is the Relinquished Property Identification Notice — the inverse of the forward exchange's Replacement Property Identification Notice. Routing to the wrong watcher or generating the wrong document variant is an IRS compliance failure.
Step 5 — Sell Relinquished Property + Route Proceeds (Day 0–180)
The relinquished property must close and proceeds must be routed through the QI (not the exchanger — constructive receipt) before Day 180. Forward exchange workflows are reused here. The 180-day clock was already running since Day 0.
Sales Hub Before Day 180 QI authorizes wire
WorkflowTriggerApproval GateDocuments
esign-orchestrationSign action in Sales HubExchanger + QI counter-signExchange Agreement, Assignment of Contract (relinquished)
escrow-wire-routingClosing event webhookQI officer authorizes wire (multi-party)Wire instruction letter
escrow-funds-receivedBank webhook / Plaid eventQI confirms receiptEscrow receipt confirmation
Constructive Receipt Firewall

Sale proceeds must flow to the QI-held escrow account, never directly to the exchanger. The escrow-wire-routing workflow enforces this at the wire level — no code path allows the exchanger to receive funds before the EAT transfer-out is complete.

Step 6 — EAT Transfer-Out: Deed + Loan Repayment (Before Day 180)
The EAT transfers the replacement property title (deed) to the exchanger, and the EAT loan is repaid from exchange proceeds. This is an atomic, multi-party approval Vectr workflow — no single person can execute it. The 180-day parking-watcher fires a hard block at Day 179 if transfer has not been initiated.
Disbursement Hub Day 180 Hard Deadline QI approves Exchanger requests
WorkflowTriggerApproval GateDocuments
eat-transfer-outExchanger requests a transfer the agreement permits; an authorized officer proposes itTwo authorized officers, proposer distinct from approver — never single-personDeed transfer instruction, EAT loan repayment confirmation, wire authorization
reverse-180day-parking-watcherDay 0 timestamp / ongoingDay 179: blocks transfer if not initiated; QI alertedDay 150 warning, Day 170 warning, Day 179 block notice
Step 7 — IRS Form 8824 (Post Transfer-Out)
Form 8824 is auto-generated after EAT transfer-out completion. §1031(d) basis computation is automated from exchange data. Exchanger and CPA review; QI counter-signs.
IRS Hub Auto-generated Exchanger reviews CPA reviews QI countersigns
WorkflowTriggerApproval GateDocuments
form-8824-generateEAT transfer-out completion eventExchanger + CPA review; QI counter-signIRS Form 8824 — Like-Kind Exchanges (PDF) with §1031(d) basis calculation

Exchange-First — EAT Parks the Relinquished (less common; exchanger wants to buy first, sell later)

Exchange-First: EAT Parks the Old Property You Already Own
In exchange-first the exchanger already owns the relinquished property and wants to acquire the replacement first. The EAT takes title to the relinquished property (not the replacement), parks it while the exchanger closes on the replacement with their own funds, then sells the relinquished property within 180 days and routes proceeds back through the QI. The hub sequence is: EAT Setup → Sales (deed into EAT) → QEAA → Purchase (replacement, exchanger funds) → ID (identify replacement for Identification Notice) → Disbursement (relinquished proceeds to exchanger less basis) → IRS.

Less common than exchange-last — exchanger must have capital to close the replacement without exchange funds. All three deadline clocks still anchor on EAT deed recorded (now the relinquished deed, not replacement).
1
EAT Setup Form SPE-LLC
Open EAT escrow Reverse eat-entity-formation
2
Deed Relinquished into EAT EAT parks existing
relinquished property Sales Hub Day 0 anchor eat-parking-arrangement-setup
3
Sign QEAA Parking agreement
within 5 biz-days Reverse 5 biz-day eat-agreement-generate
4
Purchase Replacement Exchanger closes
with own capital Purchase esign-orchestration
5
ID Replacement Standard ID notice
within 45 days ID Hub 45-day forty-five-day-id-watcher
6
EAT Sells Relinquished Proceeds to exchanger
less basis (multi-party) Disbursement Before Day 180 eat-transfer-out
7
IRS Form 8824 Post-sale reporting IRS Auto-generated form-8824-generate
Exchange-First Key Differences vs Exchange-Last
1. Anchor event is the relinquished deed into EAT (not the replacement deed). The eat-parking-arrangement-setup webhook still fires, but from the relinquished property close.

2. ID hub uses default bodyVariant (identify-replacement) — exchanger is identifying the replacement they are buying, same as forward exchange.

3. Exchanger must have external capital for the replacement purchase (Step 4) because exchange proceeds are not available until the relinquished sale (Step 6) completes. The QI cannot release EAT-held funds until Day 180 close.

4. The 8 Vectr reverse workflows are identical — only the config array reorders which hub the anchor event fires from.
All 8 Reverse Workflows — Automation Coverage IRS compliance points automated by Vectr
# Workflow Trigger Approval Gate Documents Generated
1 eat-entity-formation Exchange created (reverse type) None — automated SPE-LLC articles of organization, EAT escrow docs, operating agreement
2 eat-parking-arrangement-setup Deed-recorded webhook from EAT acquisition None — starts 45-day + 180-day durable timers Parking arrangement record
3 reverse-qeaa-5day-watcher Day 0 timestamp (deed recorded) QI escalation on Day 5 if QEAA unsigned Day 3 reminder, Day 5 escalation notice
4 eat-agreement-generate Parking setup complete event Exchanger + QI each sign via DocuSign QEAA Agreement (PDF), EAT loan documents
5 reverse-45day-relinquished-id-watcher Day 0 timestamp QI alerted Day 44; hard block Day 45 Day 30/40/44 reminders; Relinquished Property Identification Notice
6 reverse-180day-parking-watcher Day 0 timestamp / ongoing Day 179 blocks transfer if not initiated Day 150/170 warnings, Day 179 block notice
7 eat-transfer-out Exchanger requests a transfer the agreement permits; an authorized officer proposes it Two authorized officers, proposer distinct from approver — never single-person Deed transfer instruction, EAT loan repayment confirmation, wire authorization
8 form-8824-generate EAT transfer-out completion event Exchanger + CPA review; QI counter-sign IRS Form 8824 — Like-Kind Exchanges (PDF)

IRS Compliance Points — What Vectr Automates

5-Day QEAA Business-Day Window
Durable countdown; Day 3 reminder; Day 5 blocks exchange if unsigned. Business-day logic skips weekends + federal holidays. Workflow: reverse-qeaa-5day-watcher
45-Day Relinquished Property ID
Durable timer; Day 30/40/44 reminders; Day 44 QI escalation; Day 45 hard block. Identifies the property to be SOLD (inverse of forward). Workflow: reverse-45day-relinquished-id-watcher
180-Day EAT Parking Maximum
Durable timer; Day 150/170 warnings; Day 179 blocks transfer if not initiated. No grace period. Workflow: reverse-180day-parking-watcher
EAT Cannot Be the Exchanger
SPE-LLC formed as a separate legal entity. Exchanger is blocked from taking title until after EAT transfer-out completes. Structural, not a checkbox. Workflow: eat-entity-formation
No Constructive Receipt
Wire release and deed transfer are atomic, multi-party-approval Vectr workflow steps. No single person can execute. Workflow: eat-transfer-out
§1031(d) Basis Computation
Form 8824 basis and recognized gain calculated automatically from exchange data. Workflow: form-8824-generate
See the Reverse Automation Surface for the QI admin view
The automation surface shows the same 8 workflows from the QI operator perspective — live status tiles, approval gates, document checklist, and OFAC/KYC status for a specific exchange in flight. This flow map proves the architecture; the surface is what a QI officer monitors daily.
Reverse Automation Surface All Hubs