1031 exchange QIs
Old Republic Exchange Company
Old Republic Exchange Company acts as qualified intermediary for tax-deferred exchanges of real property under IRC Section 1031. The company was incorporated in California in 1993 and is a wholly owned subsidiary of Old Republic International Corporation (NYSE: ORI), a multi-line insurance holding company that also owns Old Republic National Title Insurance Company.
Exchanges are handled through regional offices located throughout the United States, with an interactive map on the site for finding a local exchange representative and a national office line for everything else. The site explains what counts as like-kind real property: raw land held for investment may be exchanged for single-family rentals, multi-family rentals, some recreational properties, or a leasehold interest of 30 years or more, and personal property exchanges ended on January 1, 2018.
Security of exchange funds is the company's stated differentiator. On request it will provide a written guarantee from Old Republic National Title Holding Company covering loss of funds transmitted to Old Republic Exchange where the loss results from gross negligence, fraud, or dishonesty by the company or its employees. It also carries professional liability (errors and omissions) insurance with a $60 million aggregate limit and a fidelity bond with a $60 million single-loss limit and a $120 million aggregate limit. The parent company reported $25.1 billion in total assets as of March 31, 2022.
The company states that it does not provide tax or legal advice and refers clients to their own tax advisors. Fees, the availability of reverse and improvement exchanges, and where exchange funds are held are not published, so those belong in the first call to a regional office.
Best for
Investors who want a qualified intermediary backed by a large insurance parent and a written guarantee on exchange funds, and who are willing to confirm fees and exchange types by phone rather than read them on a rate page.
What they do
- Qualified intermediary services for 1031 exchanges
- Like-kind real property exchange facilitation
- Written guarantee of exchange funds from Old Republic National Title Holding Company
- Regional exchange representatives across the United States
- 1031 exchange reference material for investors and advisors
Details
| Attribute | Value |
|---|---|
| Founded | 1993 |
| Ownership | Subsidiary |
| Fund security | Bank-owned |
What stands out
- Incorporated in California in 1993 and a wholly owned subsidiary of Old Republic International Corporation (NYSE: ORI).
- Parent company reported $25.1 billion in total assets as of March 31, 2022.
- Carries errors and omissions insurance with a $60 million aggregate limit.
- Fidelity bond covers dishonesty or fraud with a $60 million single-loss limit and a $120 million aggregate limit.
- Will provide a written guarantee of exchange funds from Old Republic National Title Holding Company on request.
Common questions
- What real property qualifies as like-kind for a 1031 exchange?
- Like-kind means similar in nature and character, notwithstanding differences in grade or quality, and whether the real estate is improved or unimproved does not matter. Old Republic Exchange gives raw land held for investment, single-family rentals, multi-family rentals, some recreational properties, and a leasehold interest of 30 years or more as examples that can be exchanged for one another.
- Can personal property still be exchanged under Section 1031?
- No. The company states that as a result of tax reform legislation, 1031 exchanges are no longer allowed on personal property, effective January 1, 2018. Only real property qualifies.