Your Essential Guide to 1031 Exchange Specialists
A successful 1031 exchange requires a coordinated team of specialists — each playing a critical role in ensuring your transaction is compliant and tax-optimized. Here's your complete guide to finding and vetting each one.
The 1031 Exchange Team
1. Your CRE Broker
Your broker serves double duty: marketing your relinquished property to achieve the highest price, and identifying replacement properties quickly enough to meet the 45-day deadline. Choose a broker with deep market knowledge, active buyer relationships, and a track record of exchange transactions.
2. Qualified Intermediary (QI)
The QI is legally required to hold your exchange funds. Key qualifications to look for:
- FEA (Federation of Exchange Accommodators) member
- Segregated, not commingled, client accounts
- Fidelity bond and E&O insurance
- Experience with California-specific clawback rules
3. CPA / Tax Advisor
Your CPA advises on the overall exchange strategy — how much gain you're deferring, whether to take some boot intentionally, and how the exchange interacts with your broader tax picture. Look for a CPA with specific IRC Section 1031 experience.
4. Real Estate Attorney
Reviews purchase and sale agreements to ensure they're structured correctly for a 1031 exchange, and coordinates with the QI on timing and documentation.
Common Mistakes to Avoid
- Missing the 45-day or 180-day deadlines
- Failing to identify properties in the right format
- Touching exchange funds before the QI transfers them
- Not accounting for California's clawback rule
Samimi CRE Advisors coordinates the entire 1031 exchange process for our clients, connecting you with the right QI, CPA, and attorney.