How to Evaluate a Qualified Intermediary
Use a clear scorecard instead of a ranked list before you choose.
Check Fund Safeguards First
Ask how your exchange funds are held. Washington law requires facilitators to carry at least a one million dollar fidelity bond or hold funds in a qualified escrow or trust meeting the statute. Ask for written evidence of this, not a verbal promise, before you sign anything.
Ask for Written Evidence, Not Claims
Request proof of the fidelity bond or escrow arrangement and proof of at least two hundred fifty thousand dollars in errors and omissions insurance, or the statutory alternative. Washington also requires specific disclosures before the exchange agreement. Ask to see them in writing before you commit.
Compare Fees, Responsiveness, and Conflicts
Ask for a full written fee schedule with no hidden charges. Test responsiveness before you sign by calling with questions. Ask directly whether the company or its staff have any ownership or referral relationship with properties or DST sponsors they mention to you.
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.
Q1Who is the best 1031 exchange company?+
We do not rank or recommend specific companies. Instead, use a written scorecard covering fund safeguards, insurance evidence, fees, responsiveness, and conflicts of interest. This gives you a consistent way to compare any facilitator you are considering.
Q2What insurance should a facilitator carry?+
Washington law requires facilitators to carry at least two hundred fifty thousand dollars in errors and omissions insurance, or a statutory cash, securities, or letter of credit alternative. Ask for written evidence of current coverage before you sign an agreement.
Q3Is exchange facilitation regulated like a bank?+
No. Washington law requires facilitators to disclose that exchange facilitation is not regulated by a Washington or federal government agency. This makes written evidence of bonding, escrow, and insurance even more important before you choose a facilitator.
Bring Your Questions to a Real Conversation
Book a Real Estate Review. We will help you prepare the right questions for any qualified intermediary before you sign, alongside your CPA and attorney.
Bring Your Questions to a Real Conversation
Book a Real Estate Review. We will help you prepare the right questions for any qualified intermediary before you sign, alongside your CPA and attorney.
Book a Real Estate ReviewNext steps
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