Professional Fees
Edmund & Wheeler, Inc. is not a “discount exchange provider” — we involve ourselves in our clients’ transactions at a level unparalleled in our industry.
What an exchange costs depends on:
- The type and complexity of the transaction
- The type of engagement required
- The number of parties or entities involved
- The number of properties involved on both sides of the deal
- Whether fractional or whole interests are transferred or acquired
- The degree of haste or urgency of the situation
- Other transaction-specific factors
Our fees are all-inclusive — support before, during and after the exchange — and are quoted at the time of the engagement. Here is an outline of the services an engagement includes:
Preliminary Support, Consulting & Training
A significant part of our practice is helping professionals and individuals determine whether a Section 1031 Exchange is the right strategy. Getting involved early ensures the vehicle fits the situation. Many clients engage us a year before they plan to sell; we will accommodate your time frame, even if you are closing tomorrow.
Replacement Strategies
Many clients need help not only facilitating an exchange, but understanding what an exchange can do for them — options that are virtually unknown to most real estate professionals. We have helped hundreds of clients put replacement options to work that meet their requirements.
Preparation of Documents
- We prepare the multitude of documents that align the sale of your property to the exchange; your own professionals may review and approve them before you sign.
- Documents are distributed via DocuSign for electronic signature on desktop and portable devices.
- Because an overlooked detail can derail your intended tax benefits, we insist on seeing and approving the relevant documents prior to closing.
Banking and Safeguarding the Funds
One of the specific requirements of the statute and the regulations is that the intermediary be “Qualified”, in that it has done no business (other than Section 1031 exchanges) with the client in the past 2 years and is otherwise “unrelated” to the client.
Your exchange funds are held at Needham Bank in a segregated escrow account under your name (or your entity’s name) and tax ID number. You must approve any and all disbursements of your funds. For clients who wish to extend FDIC insurance coverage beyond the standard per-depositor limit, Needham Bank offers ICS (Insured Cash Sweep) placement, which spreads balances across a network of banks so the full balance can remain FDIC-insured.
Support During the Entire Exchange
We remain closely involved throughout the exchange period. We have been involved in thousands of transactions, from the closing of a single-family rental house to some of the nation’s largest commercial properties.
Conforming Documents, Accounting and Record Keeping
The Qualified Intermediary serves as overall supervisor of the exchange, coordinating every party involved — sellers, brokers, lawyers, bankers — including deals that span multiple properties and states. To close out the exchange, a full accounting is made, and your complete electronic file is provided at the conclusion of the exchange via secure link.
Questions about your situation? Call us at 603-444-0020 — the finer details are best covered in a conversation.