We believe that you should know exactly how and where your exchange funds are deposited. Furthermore, you should receive independent verification of this critical information directly from the bank. Accordingly, we provide the following for all our exchange clients:
(1) Qualified Escrow Account
Your exchange funds are deposited in a segregated qualified escrow account (the “Escrow Account”) with an independent bank as the escrow holder (the “Bank”).* We have never commingled or pooled a client’s exchange funds with any other client’s exchange funds for investment purposes. Any disbursement from the Escrow Account requires your written authorization, the authorization by a Bank officer, and the authorization of an officer of 1031 Services, Inc.
(2) Independent Verification from the Bank
We appreciate your trust in us, but we believe that you should receive independent verification directly from the Bank about how and where your funds are invested. Thus, the Bank will send you a monthly account activity statement, and you may also request on-line viewing of your account directly with the Bank.
(3) FDIC Insured Money Market Account
The funds in the Escrow Account are invested in a money market account that is insured by the FDIC for up to $250,000. Your tax identification number is used for the Escrow Account.
*We currently work with several independent banks that provide Qualified Escrow Account services. Please call for more information on the choice of banks.