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Aditya Kasturi | Realogics Sotheby's International Realty

Compare Like Kind Exchange Companies With Confidence

Know what to check before you choose a qualified intermediary for your exchange.

What a 1031 Exchange Company Does

A 1031 exchange company, also called a qualified intermediary, holds your sale proceeds and prepares exchange paperwork. Your broker manages the property. Your CPA confirms tax treatment. Keeping these roles separate protects your exchange and keeps deadlines clear so no single party controls both your money and your timeline.

Verify Bonding, Insurance, and Written Disclosure

Washington law requires a facilitator to hold a minimum bond or qualifying escrow, plus insurance coverage. The company must give you written disclosure before you sign, including notice that no state or federal agency regulates exchange facilitation. Ask for proof, not just a promise, before you commit funds.

Compare Total Costs and Provider Descriptions

Ask each company for a full written quote covering setup, wire, escrow, lender, inspection, brokerage, and tax fees, since costs vary by deal. One example, 1031 Services, Inc., describes itself as a qualified intermediary serving clients from Seattle. This is their own claim, not independent verification. Last checked August 18, 2026.

Sources

Educational only, not tax advice. Your CPA must confirm tax treatment, timing, participation, basis, and filing before you act.

Common questions

Clear answers first. If one question changes the deal, bring it into the review before you move money.

Q1What does a 1031 exchange company do?+

A 1031 exchange company acts as a qualified intermediary. It holds your sale proceeds and prepares the paperwork the IRS requires for a like kind exchange. It does not advise on property choice, financing, or your tax return. Your broker and CPA handle those parts.

Q2How do I check if a company meets Washington requirements?+

Ask for written proof of the bond or qualifying escrow, the insurance coverage, and the required disclosure statement. Washington law sets minimums for these protections. A qualified company will provide this before you sign any exchange agreement.

Q3Should I compare fees between exchange companies?+

Yes. Ask each company for a full written quote before you choose. Fees vary for setup, wire transfers, escrow, and other services. Comparing written quotes helps you avoid surprises and understand the total cost of your exchange.

See Your Replacement Property Options

Once you understand how exchange companies work, the next step is reviewing your property and timeline with a broker. Book a Real Estate Review to map your options before your sale closes.

See Your Replacement Property Options

Once you understand how exchange companies work, the next step is reviewing your property and timeline with a broker. Book a Real Estate Review to map your options before your sale closes.

Book a Real Estate Review
Last updated: August 18, 2026

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