1031 Qualified Intermediary

The role of the Qualified Intermediary is essential to completing a successful and valid delayed exchange. The Qualified Intermediary is the glue that puts the buyer and seller of property together into the form of a 1031 Exchange. Where such an intermediary (often called an exchange facilitator) is used, the intermediary will not be considered the agent of the taxpayer for constructive receipt purposes notwithstanding the fact that he may be an agent under state law and the taxpayer may gain immediate possession of the money or property under the laws of agency.

Even though our pricing is always very competitive, it is not the most important reason to choose Haven Exchange. Neither should the fact that we pay interest on every account, no matter the size, be your first concern. The absolutely critical factors are Security and Service. It could be said "It's where the rubber meets the road."

Haven Exchange provides clients with a degree of safety and security for their funds that is unmatched by any of our competitors. At Haven Exchange, ALL exchange proceeds are covered by our Fidelity Bond and all funds are placed in separate, fully segregated, completely liquid, FDIC insured money market accounts at Union Bank of California. Every client receives a statement directly from Union Bank of California each month, reflecting the activity and balance, including interest earned for their individual 1031 Exchange account. For your security, two signatures followed by a changing, randomly generated encrypted security code are required for any release of your 1031 funds.

What has most impressed our customers is the reliable care they receive from our knowledgeable and enthusiastic staff. I havemany years experience both in escrow and 1031 exchange, but my team has really taught me something about customer service that I'm sure you will value. As much as I was able to teach them about 1031 exchange services, I feel very enriched by their contribution. Everyone at Haven Exchange is committed to providing unsurpassed service to our clients. Your success is our success.

In order to take advantage of the qualified intermediary " safe harbor" there must be a written agreement between the taxpayer and intermediary expressly limiting the taxpayer's rights to receive, pledge, borrow or otherwise obtain the benefits of the money or property held by the intermediary. The intermediary can act with respect to the property as the agent of any party to the transaction and further, an intermediary is treated as entering into an agreement if the rights of a party to the agreement are assigned to the intermediary and all parties to the agreement are notified in writing of the assignment on or before the date of the relevant transfer of property. This provision allows a taxpayer to enter into an agreement for the transfer of the relinquished property (i.e., a contract of sale on the property) and thereafter to assign his rights in that agreement to the intermediary. Providing all parties to the agreement are notified in writing of the assignment on or before the date of the transfer of the relinquished property, the intermediary is treated as having entered into the agreement and, upon completion of the transfer, as having acquired and transferred the relinquished property.

There are no licensing requirements for Qualified Intermediaries. They need merely be not an unqualified person as defined by the Internal Revenue Code in order to be qualified. The Code prohibits certain "agents" of the taxpayer from being qualified. Accountants, attorneys and realtors who have served taxpayers in their professional capacities within the prior two years are disqualified from serving as a Qualified Intermediary for a taxpayer in an exchange. If your CPA owns more than 10% of your Intermediary Company, it is a considered your "agent"and is a disqualified party.

Our policy and habit  is one of constant review and of stretching to be better, so we'd love to hear your brilliant suggestions.  We are sure that every day, we  can give better service faster.  We're happy to take the time to walk you through it, if that's what you want, and get you hooked up with the best advice or advisor at our disposal.