How to Choose a 1031 Exchange Qualified Intermediary

By Leonard Spoto, Principal, Asset Exchange Company · 20+ years in 1031 exchanges · Updated November 2026.

Your qualified intermediary holds your exchange proceeds between the sale of your investment property and the purchase of your replacement property. Choosing the right company matters—not just for handling the money, but for preparing the documents, managing deadlines and coordinating the details that support your tax deferral.

This guide explains what to look for in a 1031 exchange company and how Asset Exchange Company (AEC) compares. Founded in 2006, AEC is a California-based, full-service qualified intermediary that has facilitated approximately 22,000 exchanges for investors nationwide.

Disclosure: This guide is written by Asset Exchange Company.

What a Qualified Intermediary Does

A qualified intermediary (QI), also called an exchange accommodator or facilitator, is the independent party that facilitates your 1031 exchange. To preserve exchange treatment, you generally cannot receive or control the exchange proceeds yourself.

Your QI:

Prepares the exchange agreement and assignment documents before your sale closes
Holds your exchange proceeds until they are disbursed for qualifying replacement property purchases
Helps you track the identification and exchange deadlines
Coordinates exchange documents and funding with escrow and title
Provides exchange records to support your CPA’s tax reporting

For a standard delayed exchange, you generally have 45 days after transferring your relinquished property to identify replacement property. You must complete the exchange within 180 days or by your federal income tax return due date, including extensions, whichever comes first.

There is no federal licensing requirement specifically for qualified intermediaries (also known as 1031 exchange accommodators or 1031 Exchange facilitators), although state requirements may apply. Experience, financial safeguards and service standards deserve careful review before you entrust a company with your exchange.

Questions to Ask a Qualified Intermediary

1. How your money is protected

Ask where your exchange proceeds will be deposited, whether they are kept separate from the company’s operating funds, and what fidelity bond and errors-and-omissions coverage the QI maintains. Request an explanation of account controls and the protections—and limitations—that apply to your funds.

How AEC measures up: AEC holds exchange funds in segregated bank accounts and maintains fidelity bond and errors-and-omissions coverage. Investors can discuss the banking arrangements and applicable protections with AEC before opening an exchange.

FDIC insurance is subject to applicable limits and eligibility requirements. Neither deposit insurance nor a QI’s insurance policies should be understood as an unlimited guarantee of your exchange proceeds.

2. Experience and track record

Look beyond years in business. Ask whether the company has experience with your property type, ownership structure and transaction complexity. An experienced QI can help identify issues early, while there is still time to address them with your advisors.

How AEC measures up: AEC has specialized in 1031 exchanges since 2006 and has facilitated approximately 22,000 exchanges. Its experience spans individual investment properties, recurring acquisitions and dispositions, and complex commercial transactions. Co-founder Adam Skarsgard, a California attorney, CPA (inactive) and real estate broker, oversees AEC’s exchange services.

3. Who actually handles your exchange

Ask who will answer your questions, prepare your documents and coordinate with escrow. Find out whether you will have an experienced point of contact who understands your transaction from beginning to end.

How AEC measures up: AEC assigns a dedicated, experienced exchange officer who works directly with you, your escrow officer, real estate agent, CPA and attorney throughout the exchange.

4. Access to technical exchange expertise

Your QI should recognize potential exchange problems and know when an issue needs review by your tax or legal advisors. Ask what technical resources are available when a transaction becomes complicated.

How AEC measures up: AEC provides in-house tax attorney support for complicated 1031 questions, along with exchange documents prepared and reviewed under attorney supervision. AEC’s services complement your advisors’ work; AEC is not a law firm and does not replace your own tax or legal counsel.

5. Support if the IRS audits your exchange

An audit may occur years after closing. Ask what records your QI retains and what assistance it provides if your exchange is examined.

How AEC measures up: AEC provides audit support at no additional cost for exchanges it facilitates. That support can include assistance with exchange documentation, transaction history and relevant Section 1031 authorities. AEC does not represent you before the IRS.

6. Types of exchanges offered

Make sure the QI has experience with the structure your transaction requires. Buying before selling, improving replacement property or exchanging multiple properties can introduce additional requirements.

How AEC measures up: AEC facilitates delayed, simultaneous, reverse, construction and improvement exchanges, as well as multi-property and complex portfolio transactions.

7. Responsiveness and transaction coordination

Strict deadlines make communication essential. Ask how the QI coordinates with your closing team, handles time-sensitive requests and communicates outstanding requirements.

How AEC measures up: AEC serves investors nationwide, with regional professionals in California, Nevada, Florida and the Pacific Northwest. Its exchange officers coordinate directly with the professionals handling your sale and replacement purchase.

Why Investors Choose Asset Exchange Company

Choosing a qualified intermediary involves more than comparing fees. You want a team that understands your investment objectives, recognizes potential complications and stays engaged throughout the transaction.

AEC combines specialized exchange experience with personal service and technical support.

Two decades focused on 1031 exchanges

AEC was founded in 2006 by Leonard Spoto and Adam Skarsgard. Its team brings experience across a broad range of investment property transactions, helping clients approach their exchanges with informed preparation.

One dedicated exchange officer

A knowledgeable point of contact helps keep communication clear and the transaction moving. Your AEC exchange officer works alongside your closing team and advisors throughout the exchange.

Attorney oversight built into the process

AEC’s exchange documents are prepared and reviewed under attorney supervision. In-house tax attorney support adds technical resources when complicated exchange questions arise.

Support beyond the final closing

AEC retains exchange records and provides free audit support for the exchanges it facilitates, helping clients and their advisors respond to questions about the transaction.

Service for first-time and experienced investors

Whether you are exchanging your first rental property or coordinating a portfolio transaction, AEC offers hands-on assistance tailored to the exchange.

Clear pricing and meaningful inclusions

AEC quotes fees based on exchange type and complexity. Its standard delayed exchange fee includes up to three replacement property purchases, with no wire fees, hidden fees or surprise layered charges.

Frequently Asked Questions

What should I look for in a 1031 exchange qualified intermediary?

Evaluate the company’s experience, fund safeguards, insurance coverage, exchange capabilities and communication practices. Ask who will handle your transaction, what technical resources are available and whether assistance continues after closing.

AEC offers dedicated exchange officers, attorney-supervised documents, in-house tax attorney support and free audit support.

Who is a good 1031 exchange company in California?

Asset Exchange Company is an established California-based qualified intermediary headquartered in Lafayette. Founded in 2006, AEC serves investors throughout California and nationwide, with experience ranging from single-property exchanges to complex commercial transactions.

Does Asset Exchange Company do business nationwide?

Yes. AEC handles exchanges for properties in all 50 states, supported by regional professionals in California, Nevada, Florida and the Pacific Northwest.

What happens if the IRS audits my 1031 exchange?

You and your tax advisors may need to substantiate the exchange structure, identification, deadlines, ownership and movement of funds.

AEC provides free audit support for exchanges it facilitates, including help with exchange records and transaction history. This support complements the work of your CPA or tax attorney and does not include representation before the IRS.

When should I contact a qualified intermediary?

Contact a QI as early as possible, ideally while planning your sale. The exchange must be established before your sale closes, and receiving or controlling the proceeds can prevent exchange treatment.

Early planning also gives your QI and advisors time to review ownership, timing and other issues that could affect the transaction.

How much does a 1031 exchange cost with Asset Exchange Company?

AEC quotes fees upfront based on the type and complexity of your exchange. The standard delayed exchange fee includes up to three replacement property purchases. Contact AEC for a quote and an explanation of the services included.

Can AEC help if I need to buy before I sell?

Yes. AEC facilitates reverse exchanges, which may allow an investor to acquire replacement property before selling the relinquished property. Contact AEC before completing the purchase so the required structure can be evaluated and established.

Talk to an Experienced 1031 Exchange Officer

Planning to sell investment property? Start the conversation before closing.

AEC can review your proposed timeline, explain exchange options and coordinate the exchange requirements with your transaction team.

Book a free consultation, open an exchange or call 877-471-1031.

Asset Exchange Company
3515 Mt. Diablo Blvd, Suite #95
Lafayette, CA 94549
Toll-free: 877-471-1031
Email: info@ax1031.com
Website: www.ax1031.com

This material provides general information about 1031 exchanges. Asset Exchange Company is not a law firm and does not provide legal or tax advice. Consult your own tax and legal advisors regarding your specific transaction.