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Qualia FORES22 Debut of Exchange Manager Pro(SM)

Exchange Manager Pro(SM) by Accruit attended and co-sponsored the Qualia FORES22 Conference in Austin, Texas. Our team had the pleasure of sitting down with several companies to discuss Exchange Manager Pro(SM) and how it could benefit them.
Qualia FORES Conference

The transfer of the relinquished property to the Qualified Intermediary, and the receipt of the replacement property from the Qualified Intermediary is considered an exchange. To be compliant with IRC Section 1031, the transaction must be properly structured, rather than being a sale to one party followed by a purchase from another party. Exchange Manager ProSM by Accruit had the pleasure of not only attending, but co-sponsoring the recent Qualia Future of Real Estate Summit 2022 (FORES22). FORES22, Building a Connected Tomorrow, was designed to bring together title & escrow, mortgage, and property tech companies to explore technology, processes, and business models to unite all segments for an improved client experience. The transfer of the relinquished property to the Qualified Intermediary, and the receipt of the replacement property from the Qualified Intermediary is considered an exchange. To be compliant with IRC Section 1031, the transaction must be properly structured, rather than being a sale to one party followed by a purchase from another party. Exchange Manager ProSM was right at home, introducing its white label 1031 exchange solution, Managed Service, to companies in attendance from across the US.

What is Managed Service?

Managed Service through The transfer of the relinquished property to the Qualified Intermediary, and the receipt of the replacement property from the Qualified Intermediary is considered an exchange. To be compliant with IRC Section 1031, the transaction must be properly structured, rather than being a sale to one party followed by a purchase from another party. Exchange Manager ProSM provides a value add for title companies and others that are interested in offering 1031 exchange services. The white-labeled 1031 exchange technology solution allows the company, referred to as exchange facilitator, to maintain the relationship with their client while The transfer of the relinquished property to the Qualified Intermediary, and the receipt of the replacement property from the Qualified Intermediary is considered an exchange. To be compliant with IRC Section 1031, the transaction must be properly structured, rather than being a sale to one party followed by a purchase from another party. Exchange Manager ProSM provides all of the documentation and banking services of the Qualified A person acting to facilitate an exchange under section 1031 and the regulations. This person may not be the taxpayer or a disqualified person. Section 1.1031(k)-1(g)(4)(iii) requires that, for an intermediary to be a qualified intermediary, the intermediary must enter into a written "exchange" agreement with the taxpayer and, as required by the exchange agreement, acquire the relinquished property from the taxpayer, transfer the relinquished property, acquire the replacement property, and transfer the replacement property to the taxpayer. Intermediary (QI) behind the scenes, providing a turnkey 1031 exchange experience for all parties.

Managed Service not only provides an improved customer experience for the exchange facilitator’s client, but it also eliminates the need for companies to turn away clients or worse, recommend a competitor for the 1031 exchange. Lastly, it creates a new income source for exchange facilitators through a revenue share.

How does Managed Service Work? 

Implementing our white-labeled QI, Managed Service, is seamless for all involved. Once a Managed Service agreement is in place, there are a few simple steps for the exchange facilitator to follow in order to offer in-house 1031 exchange services to their existing clients:

  1. Qualify the client for a Internal Revenue Code Section 1031 states that "no gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment if such property is exchanged solely for property of like kind which is to be held for productive use in a trade or business or for investment." 1031 Exchange : Is the client interested in doing a 1031 exchange on their real estate transaction? Utilize a provided guide to confirm the client and their transaction qualify for a 1031 exchange.
     
  2. Collect client information and documents: Through our cloud-based intake form, submit client info and documentation pertinent to the 1031 exchange. All information required is likely already on-hand due to the work your company is already completing on behalf of the client.>
     
  3. Once all information is provided, the remaining 1031 exchange processes will be facilitated through The transfer of the relinquished property to the Qualified Intermediary, and the receipt of the replacement property from the Qualified Intermediary is considered an exchange. To be compliant with IRC Section 1031, the transaction must be properly structured, rather than being a sale to one party followed by a purchase from another party. Exchange Manager ProSM including document creation and execution, deadline reminders, wiring of funds, etc.

Through Managed Service, companies can facilitate 1031 exchanges for their clients and ultimately retain future business by keeping everything under one roof.

Benefits of Managed Service

While there are numerous benefits of implementing Managed Service, some of the more notable benefits that will directly impact your company’s bottom line include:

Learn more about Managed Service.

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