The Attorney Advantage in 1031 Exchanges
Not all Qualified Intermediaries are created equal. While anyone can hold themselves out as a QI, working with an attorney who specializes in 1031 exchanges provides a level of protection, expertise, and accountability that non-attorney QIs simply cannot match.
1031 Federal Exchange is led by attorney Steve Wolterman, CES (Certified Exchange Specialist), who brings both legal credentials and specialized exchange expertise to every transaction.
What Does an Attorney-Led QI Offer?
An attorney QI brings a higher level of knowledge and accountability to your exchange, including:
Exchange Agreement Drafting: The exchange agreement is a legally binding contract that governs your entire exchange. An attorney QI drafts this document with precision, ensuring it protects your interests and satisfies IRS requirements.
Title Review: Your QI attorney can review title issues that could affect the exchange, including easements, liens, and ownership structure questions.
Entity Structuring Knowledge: Many investors hold real estate in LLCs, partnerships, or trusts. An attorney QI understands the same-taxpayer rule and the implications of different entity structures on your exchange.
IRS Compliance Review: The IRS has strict requirements for 1031 exchanges. An attorney QI reviews every aspect of your transaction for compliance, reducing the risk of a failed exchange.
Dispute Resolution: If issues arise during your exchange, having an attorney as your QI means you are working with someone who understands the full legal context of the situation.
The Risk of Non-Attorney QIs
The 1031 exchange industry is largely unregulated. There is no federal licensing requirement for Qualified Intermediaries, and many states have no QI regulations at all. This means that a company with no legal training can hold your exchange funds and coordinate your transaction.
The consequences of a failed exchange can be severe: the entire deferred gain becomes immediately taxable, plus potential penalties and interest. Working with an attorney QI significantly reduces this risk.
Steve Wolterman, CES: Attorney and Certified Exchange Specialist
Steve Wolterman is both a licensed attorney and a Certified Exchange Specialist (CES), the highest professional designation in the 1031 exchange industry. The CES designation is awarded by the Federation of Exchange Accommodators (FEA) and requires demonstrated expertise, continuing education, and adherence to a professional code of ethics.
With Steve as your QI, you get:
- Deep expertise in real estate and tax law
- CES-level exchange knowledge
- Nationwide service for all property types
- Personalized attention on every transaction
Contact 1031 Federal Exchange
If you are planning a 1031 exchange and want the protection of an attorney QI, contact 1031 Federal Exchange today. We provide free consultations and nationwide service.
Call 513-586-6879 or fill out our contact form to get started.
Author
Steve Wolterman, Esq., CES
Attorney and Certified Exchange Specialist with over 20 years of experience guiding real estate investors through 1031 exchanges nationwide. Member of the Federation of Exchange Accommodators (FEA).