Access to Funds

Another requirement in completing a successful 1031 exchange is that the investor cannot have access or control of the proceeds from the sale of their relinquished property during the exchange period.

Thus one of the functions of the qualified intermediary is to hold the exchange funds. The exchange agreement between the investor and ADE outlines how the funds are to be held in a separate interest-bearing account. We only work with banks that are FDIC insured. We also offer a qualified escrow option through our Triple Protection Program.


The IRS Regulations outline these Restrictions. At ADE, each investor’s exchange funds are held in a segregated, interest-bearing, dual authorization account. Funds cannot be moved without the investor signature- see Triple Protection Program We work only with banks that are FDIC insured and use a qualified escrow system.

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