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1031 CES...what is that about?

Okay...I write this with a very tired mind and blurry eyes. No, it was not a great weekend partying in Georgetown...more like tipsy with studying and over-come with information. I just finished taking my Certified Exchange Specialist exam hosted by the Federation of Exchange Accommodators (FEA - http://www.1031.org/). The FEA is the only national trade association organized to represent professionals who conduct like-kind exchanges under Internal Revenue Code §1031. Here is what the FEA website says about this CES designation..." To increase the professionalism of the exchange industry and foster public confidence when selecting an exchange accommodator, the FEA administers a Certification and Continuing Education Program. The Program bestows the designation of Certified Exchange Specialist® (CES) upon those professional individuals who meet specific work-experience criteria and pass an exam on exchange laws and procedures.

The test covers an array of exchange-related topics designed to challenge the candidate's knowledge of exchange rules and competency in performing the critical activities of an exchange facilitator company. The test also focuses on those ethical issues that emerge when any third party controls the funds of another.

A Certified Exchange Specialist® (CES) designation demonstrates to a property owner considering an exchange that the professional they have chosen possesses a certain level of experience and knowledge. Just as when one selects an accountant or REALTOR®, it's important to review the credentials of any professional advisor prior to beginning a business relationship.".....

I signed a confidentiality agreement to not speak of the exam, and do not plan to. I will say that my respect for the designation and anyone who is able to legally use it as a caboose at the end of their name or business card has grown tremendously.

I have said more than once in my blogs, rants, random typings...a realtor should be as trained as they desired to be, noone is untrainable, except by choice. Well, I am not going to choose to be educated for at least another 2 weeks, but I am better for the nights of study, worry and miscellaneous anagrams which danced over my head at night. I look forward to serving my clients, referral sources, advisors and friends in an ever-increasing market which calls for forward-thinking catalysts (that is us folks!)

Posted by Matt Linville, Certified Exchange Specialist on 04/21/2007 05:33 PM

Comments (15)

1031, tax, capital, gains, gain, free, ces, qi, qualified intermediary, fea, exchange, intermediary, north carolina, section 1031, starker

15 Comments on 1031 CES...what is that about?

APR

2007

I don't have the designation but have done several 1031 exchanges. My company has a designated vendor for this service. In general the 1031 client usually comes as a buyer and needs to identify the property for purchase. I have been on list side everytime. They deposits I have recieved have come directly by wire from a lawyer within the 1031 exchange company. If they need to aquire the 1031 exchange company I send them in house.

Do you plan to be a 1031 agent or open that type of brokerage? If so then the designation would work for you.

Michael...

Thanks for the response. I am not a realtor, but strictly a Qualified Intermediary. So, I am much like your designated vendor, working hard for those referrals from someone like yourself! I have been handling 1031 for many years now, but sometimes it that professional designation that shines like a diamond in a puddle!

Let me know if I can ever be of help!

Great post, Matt

You are correct, No one is un-trainable unless they think they know everything already.....

"A fool is wiser in his own mind than 7 wise-men who answer discreetly...."

Matt,

Then the designation would seem mandatory for you and your business. I recommend you look into www.loopnet.com and place yourself in the directory. Ask for Edward Vo he is my account rep and an awesome manager for my investment properties.

I found my last 1031 exchange from Le Mesa CA with www.loopnet.com you can read about in my testimonials.

I'll add you to my network. Also please feel free to join my group on AR called The Art of the Deal as we have a forum for negotiations.

APR

2007

Alex....

Thanks for the comment, Alex. Sometimes the least educated think they know everything...now I know why my parents use to get so frustrated at my attitude growing up! I was so inexperienced, but knew it all!!

APR

2007

We certainly are in an age of specialization, Matt. Those who work hard for their credentials can indeed wear them proudly!

APR

2007

I had not heard of this designation but I'm going to check into it immediately. The alphabet soup gets a bit tedious but this is one that fits nicely into my niche. As the preferred real estate agent through Starker Services here in Kansas, it would benefit me greatly. I've assisted on many a 1031 exchange but I'm always willing to learn more.

Art,

I agree with you, Sir. Though many may not undertand our various designations, that does not take away from their value or the sacrifice of our time!

Alas, it doesn't look like a real estate agent can gain the CES. Too bad. Am I wrong about that? By the way, nice website.

Art,

I agree with you, Sir. Though many may not undertand our various designations, that does not take away from their value or the sacrifice of our time!

Chris,

Unfortunately you are correct. Find the qualifications below... I am glad to hear the 1031 world has treated you so kindly. I wish you great success from this day forward!!!

Thanks for the comment on the website, I think it is designed well to help all that come upon it! Please let me know if there is ever anything I might do for you, Chris!

CES^® Eligibility Requirements

The Federation of Exchange Accommodators, Inc. (FEA) and the CES® Certification Council requires candidates to meet the following requirements in order to be eligible to apply to sit for Certified Exchange Specialist® examination:

1. Must have earned a high school diploma or GED.
2. Must have a minimum of three (3) years out of the past seven (7) years of full-time equivalent work experience at a Qualified Escrow, Trust, or Intermediary Company as defined below. "Full-time work experience" must include substantial time spent counseling taxpayers and their advisors (e.g., lawyers, accountants, and real estate professionals) on issues relating to tax-deferred exchanges under IRC Section 1031. "Full-time work experience" does not include those periods where significant time was devoted solely to such tasks as data input, accounting, and company marketing. Qualifying work experience may be an aggregate accumulation and does not have to be consecutive years and may either be d irect, such as an owner or employee, or indirect, such as in an independent contractor status. The application review committee will take into account only that work experience accrued during the seven (7) year period from the date of the review of the candidate's application for certification.
A Qualified Escrow, Trust, or Intermediary company, as defined under Treasury Regulation Section 1.1031(k)-1(3) and (4), is any sole proprietorship, partnership, limited liability company, trust, corporation, association, or any other going concern whose primary business is that of facilitating like-kind exchanges under Internal Revenue Code Section 1031 and the Treasury Regulations promulgated thereunder.
3. Must not have any prior felony convictions for any crime involving fraud, embezzlement, misappropriation of funds, or conversion of property of another.
4. Must be an owner or employee of a Member in good standing of the FEA or an individual member of the FEA

Any candidate who meets the eligibility requirements can apply for to sit for the CES® examination.

JUL

2007

Matt~

I am wondering where your next post is. My clients and I want to read about financing options,especially for the new "high performance" LEED certified buildings and how this could benefit the 1031 investor.

I have done several exchanges for myself and others. It was pretty easy. The QI must be someone at arms length. In Florida you can use a Title Ins. Co. And you've got to be vigilant of the time constraints.

JaneAnne,

I have been slack in my writings of late! Thanks from the prompt! Behind every great poster is a tack to hold it in place!

Armando,

How correct you are. It is alllll about timeframes. How important it is to our clients for their realtor to understand the length of time the client has to complete all that is necessary. I am sure you are a great help to your clients!

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