As you are undoubtedly aware, the 1031 qualified intermediary business has received a great deal of press over
the past few weeks, as a well known QI in San Jose filed for bankruptcy last month (on the heels of a Las
Vegas-based QI folding earlier this year). I have received numerous inquiries from Realtors, investors, escrow
officers and others about this situation and about IPX1031's security of client exchange funds.
While investment property sellers must use a qualified intermediary in 1031 transactions, the qualified
intermediary industry is not regulated. How the QI decides to protect the clients' money during the transaction is
up to each QI. Some smaller QI companies may only have little or no fidelity bonding or E&O insurance
Subscribe to CommentsComment