1031 exchange QIs
Exchange Authority
Exchange Authority is a qualified intermediary for Section 1031 exchanges, based at 465 Shrewsbury Street in Worcester, Massachusetts, and a wholly owned subsidiary of Fidelity Bank.
As qualified intermediary it holds escrow funds on the exchangor's behalf and manages the movement of funds through forward exchanges, improvement (construction) exchanges, and reverse exchanges. Intake runs through a four-step process the firm calls C.A.R.E., and it positions its advice as working alongside the client's own tax adviser rather than replacing one.
Because of the Fidelity Bank affiliation, the company states that 100% of funds held in escrow are covered by a combination of FDIC and DIF insurance, and that it operates under the bank's LifeDesign brand promise. The site also publishes explainer articles on the parties and properties in an exchange, exchanges combined with installment sales, year-end exchanges that straddle two tax years, and how to report a completed exchange.
Fees, minimum or maximum exchange sizes, and turnaround commitments are not published. Two different phone numbers appear on the site, (978) 433-6061 on the home page and 978-353-2724 on the contact page, so check which desk to call before a closing date is at stake.
Best for
Massachusetts-area investors who would rather have exchange funds held by a bank subsidiary with insured escrow than by an independent intermediary. Anyone who needs a published fee schedule up front will have to ask for one.
What they do
- Forward (delayed) 1031 exchanges
- Reverse 1031 exchanges
- Improvement / construction exchanges
- Qualified intermediary escrow of exchange funds
- Exchange documentation and transaction coordination
- 1031 exchange education and articles
Details
| Attribute | Value |
|---|---|
| Ownership | Subsidiary |
| Fund security | Bank-owned, Segregated accounts |
What stands out
- A wholly owned subsidiary of Fidelity Bank, operating under the bank's LifeDesign brand promise.
- States that 100% of funds held in escrow are covered through a combination of FDIC and DIF insurance.
- Acts as qualified intermediary on forward, improvement (construction), and reverse exchanges.
- Publishes explainer articles on exchange parties, installment sale scenarios, year-end exchanges, and reporting a completed exchange.
Common questions
- How do I know whether my sale qualifies for a 1031 exchange?
- Exchange Authority screens on two questions: whether the property being sold is held for investment or business purposes rather than primarily for personal use, and whether the seller plans to buy another property for investment or business use. A no to either may rule out an exchange, and the firm invites a call to work through the specifics.