Interview and Verify Your Exchange Facilitator With Confidence
Follow a clear process before you choose who will hold your exchange funds.
Prepare Your Questions
Before you call a facilitator, write down what you need to know. Ask about their bonding or escrow protection, how they handle deadlines, and who else is involved in your file. Clear questions lead to clear answers you can compare later.
Verify in Writing
Do not rely on a verbal answer alone. Ask for written proof of the required fidelity bond or qualified escrow or trust, along with the disclosure that no state or federal agency regulates facilitation. Keep copies of everything you receive.
Confirm Before You Sign
Read the agreement closely before you sign. Confirm who holds your funds, how fees are listed, and how the facilitator will notify you about identification and receipt deadlines. A short delay now protects your exchange later.
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 should I ask a facilitator first?+
Start by asking how they protect your funds. Request proof of their fidelity bond or qualified escrow or trust and ask how long they have handled exchanges. Their answers help you judge how organized and transparent their process is before you commit.
Q2How do I confirm a facilitator's protections are real?+
Ask for written documents, not just a verbal promise. A facilitator should provide evidence of their bond or escrow arrangement and the required disclosure statement. If they hesitate to provide this in writing, treat that as a signal to keep looking.
Q3Who is not eligible to serve as my qualified intermediary?+
Related parties and people who have acted as your agent, such as your broker or accountant, generally cannot serve as your qualified intermediary. This rule protects the independence of your exchange. Confirm eligibility with your CPA before you name anyone to this role.
Ready to Start Your Verification Process?
Get support interviewing and confirming your exchange facilitator today.
Ready to Start Your Verification Process?
Get support interviewing and confirming your exchange facilitator today.
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Choose a Real Estate Exchange Facilitator With Confidence
Learn how to evaluate Seattle 1031 exchange facilitators, covering safeguards, evidence, independence, and deadline process. Educational only, not tax advice.
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