Your first and last concern in the 1031 exchange transaction should be security and integrity. Are your funds secure and will your transaction be processed accurately are the two most important questions you will pose to the Qualified Intermediary handling your exchange transaction. Unfortunately, there is no federal regulation of the Qualified Intermediary industry. And, because it is fairly easy to become a Qualified Intermediary - it is imperative that you place your exchange funds with a Qualified Intermediary that can protect your assets.

OREXCO, incorporated in California in 1993, is a wholly owned subsidiary of Old Republic International (NYSE: ORI), a $13.3 billion* dollar multi-line insurance company. When you choose OREXCO, you assure yourself that your exchange funds are secure. At your request, OREXCO will provide a written guarantee from Old Republic National Title Holding Company stating that Old Republic National will reimburse you for any loss of funds transmitted to OREXCO if such loss is the result of OREXCO’s or its employees’ gross negligence, fraud, or dishonesty.OREXCO is covered by professional liability (errors and omissions) insurance with a $50mm aggregate limit, and insured by a fidelity bond covering acts of dishonesty or fraud with a $40mm single-loss limit and an $80mm aggregate limit.

We hope this guide provides you with useful information so that you can have a meaningful conversation with your tax advisors regarding your specific situation. If you have additional questions, please call one of our regional offices located throughout the United States or visit our website for up to date information and resources at www.orexco1031.com.

* (as of Dec 31, 2007)

OREXCO does not provide tax or legal advice. Consult with your tax advisor to determine whether an exchange is appropriate for your circumstances.

Call our National Office at 800-738-1031
Visit us at www.orexco1031.com