Regulation issued by the U.S. Treasury Department requires the use of a Qualified Intermediary (QI) in the use of a 1031 Tax-Deferred Exchange. The QI must be an impartial and unrelated individual, i.e., someone who has no previous business dealings with you and is not a member of your family.
Regulations also specify that the exchangor cannot take actual or constructive receipt of the cash proceeds during the exchange. Funds must be held by the qualified intermediary. Exchange Services Inc. invests 100% of trust funds into First Interstate Bank. First Interstate Bank is a $5 billion banking organization with 49 branches operating in Montana, Wyoming and South Dakota. We have been with this financial institution for many years and have a long and well established business relationship with the executives and branch managers.
Exchange Services, Inc. provides knowledgeable and responsive qualified intermediary services to investors and real estate professionals throughout the country. By following the Internal Revenue Service safe harbor regulations on 1031 tax-deferred exchanges, we insure that your exchange documentation and procedures are in compliance with current IRS regulations. We work directly with your closing agents (realtor, title company, etc.) to insure a smooth and successful exchange transaction.
We are available to answer any questions you may have and happy to assist you in any way that we can, regarding your exchange transaction.