If the exchangor buys a replacement property before selling the property to be relinquished, the exchange is called a

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Acquiring the replacement property before selling the one you’re relinquishing is called a reverse exchange. In this setup, you secure the replacement first, often using an exchange accommodation arrangement or qualified intermediary to hold the title to the replacement while you complete the sale of the relinquished property. The IRS timing rule still applies: the overall exchange must be completed within 180 days of acquiring the replacement property, and no cash or other non-like-kind consideration (boot) should be received to maintain tax deferral. This approach is the opposite of the standard forward (delayed) exchange, where you relinquish first and then acquire. The 200% and 95% identification rules pertain to identifying multiple replacement properties in forward exchanges, not to the concept of buying first.