How Do I Choose a Qualified Intermediary for a 1031 Exchange?
Your goal should be to choose a qualified intermediary who is reliable and professional to ensure the 1031 exchange is completed smoothly. Qualified intermediaries do not require licensing, insurance, and nor are they regulated by law.
You should, however, look for a qualified intermediary that does have licensing, insurance, and who meets certain minimum equity requirements.
There are other important considerations to make when evaluating a potential qualified intermediary. Look for an intermediary with vast experience and one with an amount of insurance to cover potential mistakes that the qualified intermediary may make.
Be sure to consider protections against theft or embezzlement by your qualified intermediary as both are risks during a 1031 exchange. You should also aim to use qualified trust or escrow accounts to limit issues of theft by the qualified intermediary and ensure a smooth exchange process.
When considering a potential qualified intermediary, consider checking customer reviews, or seeking referrals from colleagues, friends, or family who may also have completed a 1031 exchange.
- What Is a 1031 Exchange?
- How Do I Complete a 1031 Exchange Application?
- What Type of Property Can I Swap in a 1031 Exchange?
- What Are Some Advantages Provided by a 1031 Exchange?
- What Is the Timeline for a 1031 Exchange Application?
- How Can I Use a 1031 Exchange to Stop Managing Property?
- How Can I Take Advantage of a 1031 Exchange?
- How Long Do I Have to Complete a 1031 Exchange?
- What Is "Like-Kind" Property in a 1031 Exchange?
- What Is the "Boot" in a 1031 exchange?
- How Do I Fully Defer the Tax on the Sale of My Property through a 1031 Exchange?
- What Is a Delayed 1031 Exchange?
- What Is a Reverse 1031 Exchange?
- Do I Need an Intermediary for a 1031 Exchange?