1031 Exchange Companies: Compare Fund Controls, Fees and Closing Coordination

Specify fund controls before selecting an intermediary

For a US Section 1031 exchange, require a written custody arrangement, wire-authority procedure, complete fee schedule and responsibility map before the sale closes. The named providers below have different published descriptions; none is established here as universally safest or cheapest.[1][2][3][5][6][7]

Here, qualified intermediary means a Section 1031 exchange facilitator, not the separate tax-withholding QI regime. Obtain the exchange agreement before the relinquished-property closing and have qualified tax/legal advisers assess the actual transaction.[1][2]

Compare published controls and scope

IPX1031

IPX1031 describes delayed, reverse and improvement exchanges and publishes bond, insurance and performance-assurance claims.[2] Obtain the current certificates and complete terms: a coverage headline is not a guarantee that every client loss is covered. Request an itemized transaction quote and identify who holds and authorizes release of funds.

First American Exchange Company

First American describes segregated accounts at qualifying FDIC-insured institutions and possible indemnification for specified company or employee conduct.[3] Confirm the account title, applicable deposit-insurance coverage, indemnification exclusions, authorized signers and total fee for the actual structure.

Asset Preservation, Inc.

API describes non-commingled accounts and exchange structures involving title holding or contractor coordination.[6] Require the actual agreement to allocate each duty and identify the limits and terms of its bond, E&O coverage and any third-party performance assurance.

1031 CORP.

1031 CORP. advertises delayed, reverse and improvement services and fund-security features.[5] Its general security language should be tested against written account arrangements, current coverage certificates, wire controls and an itemized quote.

1031X

1031X’s primary pricing page, checked on 14 October 2026, lists Standard at $1,250 for one sale and one purchase, Managed at $1,950, and Complex—including reverse and construction work—from $6,500. Standard and Managed list $500 per additional sale and $350 per additional purchase; complex-property additions depend on structure. Confirm the final scope and price in writing.[7]

The page describes segregated escrow, an exchange officer and closing coordination.[7] Obtain the applicable deposit-insurance details and contractual service-guarantee exclusions separately; a fee-refund promise is not insurance of the exchange funds.

Names requiring primary verification

A third-party review also lists Exeter 1031 Exchange, 1031 Services, Inc. and Computershare Corporate Trust.[4] Their current legal entity, supported structures, custody controls, pricing and coverage have not been established from primary documents for this comparison. Keep them as enquiries rather than rely on historical fees or protection amounts.

Assign the closing and replacement-property work

Fund custody and transaction duties should be assigned separately in the exchange agreement. API describes an agreement in which the QI handles proceeds, transfers the relinquished property to its buyer, acquires the replacement property from its seller and transfers it to the taxpayer, while restricting the taxpayer’s access to or benefit from held funds.[6]

• Delayed exchange: Identify who prepares exchange documents, issues closing instructions, protects proceeds, tracks timelines and coordinates with attorneys, accountants and closing officers. API attributes these functions to the QI.[6]
• Improvement exchange: Assign title holding, construction-disbursement approvals and contractor coordination. API specifically describes title holding and contractor coordination.[6]
• Reverse exchange: Assign title parking, compliance work and timeline management. API says it performs these functions.[6]

The cited IPX1031, First American and 1031 CORP. pages and the third-party comparison do not provide equivalent responsibility matrices.[2][3][4][5] Obtain the proposed agreement and a written scope of work from each finalist.

What to confirm with each provider

Only 1031X’s dated primary price schedule is summarized here.[7] Obtain current written quotes from all finalists and confirm signatory authority, wire verification, interest allocation, bank failure, intermediary insolvency, disputes, termination and a failed exchange. Do not treat an unpublished fee or protection limit as zero.

• Total price: Request an itemized quote covering setup, wires, additional sales and purchases, title parking, construction administration, failed transactions and cancellation.
• Account structure: Confirm the exact account title, depository institution and whether the funds use a qualified trust, segregated account, non-commingled account, money-market account or another arrangement.
• Coverage: Request fidelity-bond and errors-and-omissions certificates showing limits, exclusions and named insureds. Obtain the complete terms of any performance guaranty, indemnification letter or third-party assurance.[2][3][4][6]
• Wire authority: Identify who may authorize a wire, whether dual approval is required and how new or changed instructions are authenticated.
• Cash and interest: Establish who receives interest, whether it offsets fees and how balances above applicable deposit-insurance limits are handled.
• Failure and insolvency: Determine how the agreement treats bank failure, intermediary insolvency and claims against exchange funds.
• Legal terms: Review governing law, dispute venue, liability limits, indemnities, termination rights and charges when an exchange is canceled or does not close.

For any advertised refund or service assurance, read its claim window, exclusions and covered charges. Confirm whether a failed exchange, changed instructions or third-party costs fall within the promise; the engagement letter should resolve the actual cancellation liability.

Tax treatment remains a separate question

The IRS says a properly executed like-kind exchange can postpone recognition of gain or loss by shifting the transferred property’s basis to like-kind replacement property. Receiving cash or other non-like-kind property can trigger gain up to the value received.[1]

A taxpayer cannot take actual or constructive receipt of the sale proceeds; IRS-identified safe harbors include using a qualified intermediary or qualified trust to hold and use the proceeds to acquire replacement property.[1] The exchange must be reported on Form 8824 for the exchange year, even if no gain or loss is recognized.[1]

References

1. irs.gov (irs.gov)
2. 1031 Exchange Services | Qualified Intermediary | Exchange Facilitator (ipx1031.com)
3. First American Exchange Company | 1031 Tax-Deferred Exchange Qualified Intermediary (firstexchange.com)
4. 6 Best 1031 Exchange Companies (Ranked & Reviewed) (fitsmallbusiness.com)
5. 1031 CORP. (1031corp.com)
6. Asset Preservation, Inc. | National Leader in 1031 Exchange (apiexchange.com)
7. 1031X: Pricing and scope, checked 14 October 2026 (1031x.com)