1031 exchange QIs
1031 CORP.
1031 CORP. is a qualified intermediary for Section 1031 like-kind exchanges, working with real estate investors, business owners, and their tax, legal, and title advisors nationwide. It operates from Collegeville, Pennsylvania, and a branch office in Bend, Oregon.
As the qualified intermediary, the firm acquires and conveys both the relinquished and replacement properties through a paper assignment, prepares the exchange documentation, holds the exchange proceeds, coordinates with closing agents, and tracks the 45-day identification and 180-day exchange deadlines. Forward, reverse, and improvement exchanges are all handled; reverse and improvement exchanges run through an Exchange Accommodation Titleholder, which takes legal title until the transaction can be completed. The firm asks to be notified one to two weeks before the relinquished property closes, though it states an exchange can still be opened at the closing table.
Founded in 1991, the company says it has facilitated thousands of exchanges. It was sold to First American Title Insurance Company in 2004 as part of the T.A. Title Insurance Company family of companies, and longtime employees and the founder bought it back in 2010; it has been independently owned since. Certified Exchange Specialist (CES) designees are kept on staff, and the firm runs investor seminars, webcasts, and continuing education courses for attorneys, accountants, REALTORS, and title agents.
Fees and the specific arrangements for securing exchange funds are not published on the site, and are worth confirming in writing before an exchange is opened.
Best for
Investors and their advisors who want a qualified intermediary with Certified Exchange Specialist designees on staff for a forward, reverse, or improvement exchange, and who are prepared to request fee and fund-security terms directly. It is not the closing agent.
What they do
- Forward (delayed) 1031 exchanges
- Reverse 1031 exchanges
- Improvement (build-to-suit) exchanges
- Exchange Accommodation Titleholder (EAT) services
- Exchange documentation and closing coordination
- 45-day identification and 180-day deadline tracking
- Continuing education courses for attorneys, accountants, REALTORS, and title agents
- Investor seminars and webcasts
Details
| Attribute | Value |
|---|---|
| Founded | 1991 |
| Ownership | Private |
| Other offices | Bend, OR |
| Memberships | Certified Exchange Specialist (CES) designees on staff |
| Exchange types | Forward, Reverse, Improvement |
What stands out
- Founded in 1991 and marking 35 years as a qualified intermediary.
- Operates from Collegeville, Pennsylvania, with a branch office in Bend, Oregon.
- States it has facilitated thousands of exchanges nationwide.
- Independently owned since 2010, when longtime employees and the founder bought the company back from First American Title Insurance Company.
- Keeps Certified Exchange Specialist (CES) designees, a Federation of Exchange Accommodators credential, on staff.
Common questions
- What does the qualified intermediary actually do?
- The QI acts as the middleman required by one of the safe harbors in the 1031 regulations. It acquires and conveys both properties through a paper assignment, prepares the exchange documentation, controls the exchange proceeds, coordinates details with the closing agents, and keeps the exchanger aware of the deadlines.
- Does the qualified intermediary handle the closing?
- No. The QI is not the closing agent and handles only the exchange requirements. The closing agent is selected just as in any other transaction.
- When is it too late to start a 1031 exchange?
- Once title to the property has been conveyed to the buyer and the seller has received the sale proceeds, it is too late to initiate an exchange. 1031 CORP. states that if a seller decides even as late as the closing table, an exchange can usually still be made to work if the firm is contacted immediately.
- Can replacement property be taken in the name of an LLC?
- Title to both the relinquished and the replacement property must be vested in the same name. The exception is a single-member limited liability company whose sole member is the taxpayer that sold the relinquished property; that sole member can be an individual taxpayer or an entity.
- Does a 1031 exchange delay the closing?
- No. 1031 CORP. states an exchange can help expedite a closing, because the exchange funds are held by the QI and available for immediate acquisition, and the exchanger has to acquire the replacement property within the 180-day exchange period.