Equity Exchange LLC will serve as a Qualified Intermediary. The Qualified Intermediary, also known as a Facilitator, Accommodator or Strawman, is the term used to describe a third party principal to a transaction whose purpose is to transfer property and money thereby insulating the Exchanger both from agency issues and from actual or constructive receipt of funds issues. The Qualified Intermediary acts as a middleman by interfacing with all of the parties in a transaction and, in a delayed exchange, holds the proceeds from the sale in a Qualified Escrow Account and maintains an arm’s length relationship with the Exchanger thus providing a Safe Harbor. The Qualified Intermediary substitutes for the Exchanger as the Seller of the Relinquished Property and Buyer of the Replacement Property. The Intermediary provides the documentation to establish an exchange and to provide the best paper trail if there should ever be an audit.
The Intermediary instructs the title company or attorney’s office in completing the paperwork to achieve an exchange rather than a sale. The Intermediary is available to answer questions from all interested parties throughout the entire exchange process.
- EXPERIENCE. Ask the Intermediary how many exchanges they have handled. If the answer is not in the thousands, find another Intermediary. It can be very expensive if you have to pay an attorney to research the law and draft your exchange documentation from scratch.
- COMPETITIVE PRICING. You need not pay a premium to use one of the best Intermediaries in the country for your exchange. All of the exchanges we facilitate receive individualized, personal attention to detail. Our one-time flat fee covers the sale of one Relinquished Property and the purchase of one Replacement Property. We charge only $200 for each additional Replacement Property. We never charge extra for rush orders, notaries, postage fees or facsimile fees. Once our documents are delivered to escrow and prior to closing, should an Exchanger find it necessary to cancel, Equity Exchange LLC will charge only a $250 cancellation fee to cover our costs for document preparation and delivery.
- SECURITY OF FUNDS. Ask detailed questions on how your money is being held. We routinely deal with Fifth Third Bank. Exchange proceeds are deposited and maintained in individual accounts and are titled in Equity Exchange LLC’s name for the benefit (fbo) the Exchanger, and Exchangers receive monthly statements directly from the bank. Checks are not ordered, except for in the case of Improvement Exchanges. Exchange proceeds accounts are always FDIC insured. Exchangers may also select a bank of their own choice. The exchange accounts must be established in the same fashion as described above. There is a $50 additional fee for selecting this option.