Although the majority of small, medium, and large Qualified Intermediary companies do a admirable job, the recent spate of 1031 Exchange company rip offs has consumers on edge and weary of the 1031 process as a whole. The only safeguard consumers have against possible wrongdoing is to perform thorough due diligence on the exchange company of their choice.
The following is not a commercial for First American Exchange; instead it is one company’s checklist for consumers in the market for exchange services. Of the many points of interest to consumers, the following are the most important:
*First Exchange is owned by the First American Title Co. and is the largest provider of business information in the country; the company dates back to 1889.
*First Exchange is a subsidiary of First American Title Co. and First American Title Co. provides a “closing protection letter ensuring transactions are protected from any loss of funds as the result of negligence, fraud, or dishonesty on the part of any First American employee.
*First Exchange is governed by financial reporting and disclosure requirements of the Sarbanes-Oxley Act 2002.
*First Exchange maintains a “multi million dollar fidelity bond and professional liability insurance from an independent underwriter.”
*Company revenues were 8.1 billion in 2005 with assets of 7.5 billion.
As with anything I post, I suggest each consumer do their own due diligence on more than one company or issue. I do not stand behind nor endorse any of the above claims; rather I report what has been made available to me.
Hopefully this information provides the motivation for any consumer to perform their own due diligence investigation when in the market for services.