Realty Exchange Corporation has been a leader in the effort to have all qualified escrow accounts placed in FDIC insured banks in segregated escrow accounts in the Exchanger’s name and tax identification number.

The security and safety of exchange escrow funds are the first priority of Realty Exchange Corporation. Our AlwaysSafe™ escrow security system is

The AlwaysSafe™ system:

• Provides a separate bank account for each exchange.
• Permits exchangers 24/7 online viewing of the segregated bank escrow account by request. **
• Provides Errors and Omissions Insurance
• Establishes escrow accounts in strict compliance with IRS regulations.
• Deposits all exchange escrow funds in an FDIC-insured bank.
• Ensures exchange escrow funds are always available for disbursement.
• Provides a monthly bank statement for each exchange account.
• Provides for client authorization to transfer escrow funds.
• Performs daily validation of each escrow disbursement and deposit.
• Conducts monthly audits of all escrow accounts.
• Maintains individual registers for each escrow account.

Realty Exchange Corporation:

• Is a member of the Federation of Exchange Accommodators (FEA) and follows its strict Code of Ethics
• Multiple Certified Exchange Specialists® on staff
• Provides stability as a family‐owned and operated Qualified Intermediary since 1990.

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Separate Bank Accounts

A separate segregated FDIC-insured bank account is established for each exchange, providing maximum security and visibility of the individual exchanger’s funds. Exchangers can view the funds in the separate bank escrow account anytime via the bank’s online system. **

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Errors and Omissions Liability Insurance

The Errors and Omissions insurance defends and pays valid claims alleging negligent acts, errors or omissions in the provision of, or failure to provide, professional services involving or related to 1031 exchange transactions.

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Maintenance of Escrow Accounts

IRS Regulation 1.1031(k)-1(g) clearly provides the safe harbor rules for the establishment of qualified escrow accounts. For the taxpayer to qualify for tax deferral of capital gain, it is essential that the Qualified Intermediary (QI) strictly adhere to the IRS regulation. The party holding the escrow funds must not be a disqualified person, and there must be strict compliance with the “(g)(6) restrictions” in the regulation and escrow agreement.

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All Funds Deposited in FDIC Insured Separate Accounts

Exchange escrow funds are only deposited in separate FDIC insured accounts.  Realty Exchange Corporation takes very seriously its fidelity responsibility to ensure that the exchange escrow funds are liquid and immediately available for disbursement.

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Monthly Statement

In addition to the ability to view the segregated account online 24/7, exchangers may receive a monthly bank escrow statement upon request. **

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Funds Transfer Authorization

Each exchanger has the option to add a client authorization signature for the disbursement of funds. Realty Exchange Corporation will not transfer funds without the specific authorization of the exchanger or their designated representative.

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Daily Validation of Escrow Deposits and Disbursements

Realty Exchange Corporation conducts a daily reconciliation of escrow transactions to ensure that escrow deposits and disbursements are properly made and recorded internally and at the bank. This process permits immediate follow‐up if there is a discrepancy or delays in the receipt or recording of escrow funds.

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Individual Register for Each Escrow Account

Realty Exchange Corporation’s proprietary software system features an escrow account register for each exchange which mirrors the segregated bank account balance. The register shows the receipt of escrow funds from the relinquished property settlement, the disbursement of any requested deposits, the disbursement of funds to purchase the replacement property, and the current escrow account balance. This dual tracking system allows Realty Exchange Corporation to double-check and track exchange escrow activities.

Exchangers may view their account activity and balance directly on the bank account website. ** Monthly paper bank statements are also available, or an exchanger may request a copy of the register activity and balance. **

** Bank Dependent

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Federation of Exchange Accommodators

Realty Exchange Corporation is a long-time Federation of Exchange Accommodators (FEA) member. The FEA is the only national trade organization organized to represent professionals who conduct like-kind exchanges. The FEA establishes and promotes ethical standards for qualified intermediaries (QIs), enforces the Code of Ethics, offers required continuing education, and promotes the development of uniform terminology and standards. To ensure members know all new IRS rulings and procedures, the FEA sponsors national and regional conferences and publishes frequent newsletters.

 

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Code of Ethics

Federation of Exchange Accommodators (FEA) members must comply with a strict code of ethics. The Code stresses the protection of the public and clients against fraud, misrepresentation, and other illegal practices. The Code requires the Qualified Intermediary (QI) to direct exchange proceeds to a stable financial institution, provide financial information to the exchanger as requested, and to give a full accounting of funds at the end of the exchange. Realty Exchange Corporation prides itself on membership in the FEA and strict compliance with its Code of Ethics.

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Certified Exchange Specialist®

In recognition of the need for Qualified Intermediary (QI) personnel to be knowledgeable in all aspects of Section 1031 exchanges, the Federation of Exchange Accommodators (FEA) instituted the Certified Exchange Specialist® program. The program, which is available only to FEA members, certifies professional QI staff members and fosters public confidence in the selection of an exchange accommodator (QI). Candidates must meet specific exchange work experience criteria and pass a comprehensive examination on exchange law and procedures. The examination tests candidates’ competency to perform critical exchange activities. The test also focuses on the ethical issues when QIs control the funds of the taxpayer.

In addition, CES® designees are required to obtain twenty hours of 1031 exchange continuing education every two years. Only courses approved by the FEA may be counted toward this requirement.

Multiple managing officers of Realty Exchange Corporation hold the prestigious Certified Exchange Specialist® designation.

 

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Third Generation Qualified Intermediary (QI) family owned and Operated Since 1990

Realty Exchange Corporation is a Virginia corporation established in 1990 by Ed Horan. The company’s sole mission continues to be serving investors and real estate professionals as a 1031 exchange qualified intermediary (QI). Son Bill Horan has been an officer of the firm since the early days. Today Ed Horan serves as President Emeritus. Ed served 30 years as a pilot and Comptroller in the U.S. Air Force. Our firm is one of the oldest QIs in the country. Today Jeff Horan has also entered the business to continue servicing clients into the far future.

We have thus learned that long-term ownership and firm stability are important security attributes for a QI. It is important to note that Realty Exchange Corporation is a third-generation QI since 1990, and serving as a QI is our only business.

 

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Exchangers and their advisers can be assured that the first priority of Realty Exchange Corporation is the security and safety of exchange escrow funds.