There are no State or Federal laws that govern who can be a Q.I. -- only laws that govern who can't (your lawyer, CPA, bank or family members, etc.). And there are no laws that require training or licensing. Therefore, you need to exercise extreme care in picking the Q.I. for your exchange.

A few suggestions:

• Ask about their background and experience. They should be a CPA or attorney with considerable real estate and 1031 Exchange experience.

• Make sure they guarantee their exchanges. If they make a mistake, will they pay the penalty? If not, their mistake could cost you money -- so find someone else.

• Will they make you sign a waiver that says that if there is a mistake, they can't be sued? If they do require a waiver, you pay for their mistake -- which could cost hundreds or thousands of dollars.

• Make sure they are bonded by an independent insurance company.

• Ask who gets the interest on the funds that they hold. Many Qualified Intermediaries quote low or flat fees and then keep the interest earned from the exchange funds they hold. This can cost you a substantial amount of money in lost interest.

• Are they accessible? Will they meet with you face to face, or are they readily accessible by phone, to make sure you get all of your questions answered?

• Make sure they are a member of the only national organization of accommodators, the Federation of Exchange Accommodators.
   
  

  Please visit Investment Exchange Group -- IXG1031.com -- for all your 1031 Exchange needs. This web site is no longer active.

  Visit http://ixg1031.com