How do I sell Real Estate owned by my IRA?

Selling real estate held in a Self-Directed IRA (SDIRA) requires strict adherence to specific guidelines to ensure compliance with IRS regulations and to avoid delays in the process. Follow these steps carefully to successfully sell real estate within your IRA account.

Step 1: Review the Selling Your IRA Property Guide

Before starting the sale process, it’s essential to fully understand the requirements and steps involved. Thoroughly review the Selling Your IRA Property Guide to ensure you are familiar with the procedures. This will help prevent common mistakes that can delay the process.

Step 2: Complete and Execute Required Forms

To initiate the sale, you’ll need to fill out and sign the necessary forms. This step is crucial to ensure that all documents are accurately executed and ready for submission.

a. Signing Request
Complete the Signing Request, which includes the following sections:

• Account Holder's Name
• AET Account Number
• Property Address
• List of Documents: Specify which documents AET needs to execute (e.g., real estate purchase contract, settlement statement, warranty deed).
• Method of Return: Choose the return method (FedEx, UPS, USPS) and provide the necessary details for AET to return the documents to you.
• Signature and Date: Don’t forget to sign and date the form.

b. Hold Harmless and Indemnification Agreement
This agreement must be signed by both the buyer and the seller. This agreement protects both parties and ensures compliance.

Step 3: Additional Documentation

You’ll need to provide additional documentation to AET, including the following:

• Owner’s Affidavit: This document should be signed, dated, and notarized by you (not AET).
• Seller’s Affidavit: This must also be signed, dated, and notarized by you.
• No Liens Affidavit: Ensure this document is signed, dated, and notarized by you as well.
• Wire Instructions: Provide the AET wire instructions for the seller disbursement sheet. This document should be uploaded in PDF format.

Important: All forms must have physical signatures; digital signatures are not accepted.

Step 4: Upload Documents

Once all forms are completed and signed, you will need to upload them to AET’s system.

• Real Estate or Title Agent Sends Documents to Client: The real estate or title agent will send the required documents to you, the client.
• Upload the Documents: Once you receive the documents, you are responsible for uploading them to the Signing Request section in your IRA account. Make sure to upload the completed forms, real estate purchase contract, and any other closing documents in PDF format.
• Check for Status Updates: Be sure to check your email for updates from AET (including junk and spam folders). AET will review the documents, typically within 3-5 business days. If any revisions are needed, the process will restart, and the review period will be extended.

Important: AET does not accept any documentation via email, so please ensure all documents are uploaded through the system as instructed. AET does not offer expedited service, so plan for standard processing times.

Step 5: Title Company Instructions

You will need to coordinate with the title company handling the closing. These instructions will ensure the sale documents are processed accurately:

• Send Closing Documents to Client: The title company will send the closing documents directly to you, the client.
• Upload Documents to AET: Once you receive the closing documents, you will need to upload them to the Signing Request section in your IRA account.
• Add Signature Lines: Include “By” and “Its” signature lines for AET to sign.
• Company Resolution: AET will return a copy of the company resolution with the closing package upon request.
• Wire Instructions: Make sure to attach wire instructions for completing the seller’s disbursement sheet.

Important Compliance Notes

• IRA Titling: As with the purchase process, ensure that all documents are titled in the name of the IRA (e.g., “Client Name, legal owner via non-trust custodial IRA with AET”). This ensures the sale is compliant with IRS regulations and helps prevent delays in processing.
• Physical Signatures Only: Be mindful that all forms requiring signatures must be physically signed—digital signatures are not accepted.
• Avoid Delays: Make sure to follow each step precisely, as missing or incorrect information is a common reason for delays in processing.

By following these steps and working closely with AET and the title company, you can smoothly navigate the sale of real estate held within your IRA and ensure compliance with all regulations.