You can have the confidence of a smooth 1031 exchange with Exchange Facilitator Corporation. Easy access to our attorneys and staff provides you with counsel and status. Custom filing documents satisfy the IRS . And our long-standing relations with brokers, lenders, escrow companies and title companies assure you that everything will close with confidence. Founded in 1988, as Washington State’s first exchange facilitator, Exchange Facilitator Corporation has successfully completed more than 9,000 exchanges. Call us for a smooth exchange at 206-324-1350.
WASHINGTON STATE LAW UNDER RCW 19.310.040 REQUIRES THE FOLLOWING DISCLOSURE TO YOU:
WASHINGTON STATE LAW, RCW 19.310.040, 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 YOUR EXCHANGE FUNDS. EXCHANGE FACILITATION 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.
Exchange Facilitator Corporation believes that a Qualified Escrow or Qualified Trust offers superior protection of client funds to the protection provided solely by a Fidelity Bond, regardless of the amount of such Bond.
A Fidelity Bond will not prevent embezzlement losses from occurring.
On the other hand, a Qualified Escrow or Qualified Trust can prevent an embezzlement loss from occurring in the first place. That is why we establish a separate account for each of our exchanges in a Qualified Escrow.
You, as the client, have control over the movement of your exchange funds in the form of required Withdrawal Notices that you sign before exchange funds can be transferred.
Three parties sign the Qualified Escrow agreement and control the flow of funds in the Qualified Escrow. The three parties are you as client, us as the facilitator, and the Bank as the escrow holder.
For the foregoing reasons, we believe prevention of losses through a Qualified Escrow or a Qualified Trust
is superior to seeking payback of losses through a Fidelity Bond.