Strength in Numbers
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.
Security of Funds - Guaranteed Protection The security
of your funds should be your foremost concern when choosing a Qualified
Intermediary. Nothing is more important than knowing your funds are protected.
Upon request, Old Republic Exchange 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 Old Republic Exchange if such loss is the result of Old Republic Exchange’s
or its employees’ gross negligence, fraud, or dishonesty.
$50-Million Dollar Professional Liability Insurance Old Republic Exchange
is covered by professional liability (errors and omissions) insurance with a
$50mm aggregate limit.
$80-Million Dollar Fidelity Bond Old Republic Exchange is insured by a
fidelity bond covering acts of dishonesty or fraud with a $40mm single-loss
limit and an $80mm aggregate limit.
WASHINGTON STATE LAW DISCLOSURE. Washington state law, RCW 19.310.040, as
amended, effective June 7, 2012, requires an exchange facilitator to either maintain a
fidelity bond in an amount of not less than one million dollars that protects clients against
losses caused by criminal acts of the exchange facilitator or to hold all client funds in a
qualified escrow account or qualified trust that requires your consent for withdrawals.
All exchange funds must be deposited in a separately identified account using your taxpayer
identification number. You must receive written notification of how your exchange funds have
been deposited. Your exchange facilitator is required to provide you with written directions of
how to independently verify the deposit of the exchange funds. Exchange facilitator services are
not regulated by any agency of the state of Washington or of the United States Government. It is your
responsibility to determine that your exchange funds will be held in a safe manner.