Wisconsin ? Simultaneous Exchange Agreement is a type of real estate transaction that allows two or more parties to exchange properties simultaneously. This agreement is used when property owners wish to exchange one property for another without the need for a third party or closing costs. It is also sometimes referred to as a simultaneous closing or a 1031 exchange. This type of exchange is beneficial for both parties since it allows them to avoid paying capital gains tax on the sale of their property. This tax savings allows the parties to reinvest their money into another property with greater potential value. This agreement also eliminates the need to obtain a loan from a bank to purchase the new property. There are two types of Wisconsin ? Simultaneous Exchange Agreement: a Delayed Exchange and an Improved Exchange. In a Delayed Exchange, one party will transfer their current property to the other party and then receive the new property at a later date. An Improved Exchange is used when one party is transferring an improved property (i.e. a property that has been renovated or improved in some way) to the other party in exchange for their current property. Both types of exchange agreements are regulated by the Wisconsin Department of Revenue and are subject to certain restrictions and requirements. All parties involved in the exchange must be properly advised, and the exchange must be properly reported to the Department of Revenue.