How We Handle Your 1031 Exchanges

Exchange Facilitator Corporation provides you with a qualified intermediary for all of these protections and services:

Constructive Receipt

To meet IRS requirements for a Delayed Exchange, you can never have actual or constructive receipt of the exchange funds during the exchange. You must give up control over your exchange funds to the facilitator during the exchange period. In essence, the IRS requires you to turn over control of your money to a stranger. Your choice of a facilitator can be the most important decision you make in your exchange.

Safety

Your money is held in a segregated account, earning interest for your benefit, at no risk of principal. Amounts less than $100,000 are placed in FDIC-insured accounts. If your exchange equity exceeds $100,000, the funds are invested in fully guaranteed U.S. Government demand obligations.
All exchange accounts are insured by a Fidelity Bond against any loss caused by theft, embezzlement or act of dishonesty by Exchange Facilitator personnel. Extended coverage is available for larger accounts. We will also use Qualified Escrow Accounts, Letters of Credit and other IRS-authorized security devices upon request.
Our commitment to your security extends further to include company errors and omissions.

Complete Documentation

The form of the papers documenting your disposition and acquisition transactions is critical to a successful exchange. That's why our attorneys provide precisely detailed agreements and instructions to your closing agent for every exchange transactrion. Prior to closing, we also review and approve the escrow documents to make sure they correctly reflect your personal exchange plan.
At the conclusion of your exchange, we provide you with a binder containing copies of all of your exchange documentation. This unique organizational tool will assist you and your tax advisor in properly reporting your exchange to the IRS.

Consultation

Because each customer's investment goals are unique, our attorneys consult with you early and throughout the process to tailor your exchange to fit your particular needs. There is no extra charge for such consultation. We believe that your investment and tax matters deserve careful consideration, not a "cookie cutter" approach.

Fees

Our fee for participating in and documenting an Simultaneous Exchange is $1000.
The fee structure for participating in and documenting a Delayed Exchange is determined by the amount of exchange proceeds (equity) as follows:

Equity Up to $100,000	$1300
Equity $100,001 to $200,000	$1400
Equity $200,001 to $500,000	$1500

Call for a fee quote when exchange funds exceed $500,000, when a reverse exchange is required, or when an improvement exchange is required.

We charge a $1,000 cancellation fee if a transaction is stopped after we have prepared the exchange documents.

The fees above are based on an exchange out of one old property into one new property. We charge $250 for each additional property involved in the same exchange.

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