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1031 Exchanges

1031 Exchange Qualified Intermediary Services

Cedar Top Lending, LLC serves as qualified intermediary for Texas investors on Section 1031 exchanges, reverse exchanges and construction exchanges.

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Base fee

Starting at $850

Key deadlines

45-day identification and 180-day completion period

Our role

Qualified intermediary (QI)

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What a qualified intermediary does

A qualified intermediary (QI) is the independent third party that holds the sale proceeds and prepares the exchange documents in a 1031 exchange, so you never take receipt of the funds. IRS Code Section 1031 may allow a taxpayer to defer recognition of capital gain liabilities from the sale of real estate when the proceeds are used to acquire replacement like-kind property. The QI is the party that keeps that structure intact from your sale closing to your purchase closing.

Source: IRS - Like-Kind Exchanges (Real Estate Tax Tips)

Our exchange services

We serve as your qualified intermediary and hold the exchange funds until the exchange is completed. Because we also lend on Texas investment property, one team can handle the QI work and, subject to underwriting, bridge financing on the replacement or parked property, coordinating with your title company, CPA, and attorney throughout. Put your expected closing date into the 1031 timeline calculator to see your 45 and 180 day deadline dates before you list.

What a 1031 exchange costs

Our qualified intermediary base fee starts at $850. Call for a quote on your transaction. We would rather publish a real starting number than make you email us to find out whether we are in your range.

What moves the number is the transaction, not the property price: how many relinquished and replacement properties are involved, whether it is a straightforward delayed exchange or a reverse or construction structure that needs an entity to park title, and how long the exchange runs. A reverse or improvement exchange takes materially more work than a delayed one, so it costs more.

The QI fee is also not the only cost in an exchange. Your title company, closing costs, and your CPA or attorney are separate, and are billed by them rather than by us. Ask us what our piece covers before you compare quotes, because intermediaries package fees differently and a low headline number can carry per-property add-ons behind it.

Tell us what you are selling and what you expect to buy and we will quote the exchange. Call 817-984-3129 or send us the details.

Who cannot be your qualified intermediary

IRS rules generally bar anyone who has acted as your agent from serving as your qualified intermediary. That covers your own attorney, CPA or accountant, employee, investment banker or broker, and your real estate agent or broker, generally looking back two years from the sale closing. Close family members are typically disqualified too.

The point of the rule is independence. The QI holds the exchange funds so that you, and the people who work for you, never do. Your CPA and attorney still advise on whether the exchange qualifies and how it is reported. We coordinate with them through closing, but the intermediary itself has to be a third party. Confirm how the disqualified person rules apply to your situation with your CPA or tax attorney.

How to choose a qualified intermediary

Ask four things before you hire any qualified intermediary, including us: what the fee covers, how the exchange funds are held, who tracks the deadlines, and whether you can reach a person when a closing moves.

  • What does the fee cover? Our base fee starts at $850 and we quote the whole transaction up front. What a 1031 exchange costs breaks down what moves the number.
  • How are the exchange funds held? Ask where the money sits between closings and what has to happen before any of it moves.
  • Who tracks the 45 and 180 day deadlines? Missing either one generally ends the exchange. We track both dates on every exchange and flag them to you and your closers.
  • Can you reach a person? Our Fort Worth office is open Monday to Friday, 9:00 AM to 4:00 PM. Call 817-984-3129 and you get someone who can see your file.

1031 exchange rules in Texas

The 1031 exchange rules in Texas are the federal rules. Section 1031 is federal tax law, and Texas does not add a state layer on top of it. Texas also has no state income tax, so the tax you are deferring in a Texas exchange is federal. Confirm how that applies to your facts with your CPA or tax attorney.

What is local is the execution. We are a Fort Worth qualified intermediary and we work Texas transactions only. Our team has worked Texas real estate since 1998, so the title companies and closing timelines in your exchange are ones we know. If the replacement property needs financing, we also lend on Texas investment property, subject to underwriting.

Which exchange is right for you?

A quick way to narrow it down. Your CPA, tax advisor, or attorney can confirm which structure fits your specific transaction.

Exchange typeUse it when
Delayed exchangeYou sell the relinquished property first, then buy the replacement within the 45-day and 180-day deadlines. The most common structure.
Reverse exchangeYou need to close on the replacement property before you sell the property you already own.
Construction / improvement exchangeYou want to use exchange funds to build, renovate, or improve the replacement property before you receive it.
Simultaneous exchangeThe relinquished and replacement properties close on the same day. It is the simplest 1031 structure, but the hardest to coordinate, so it is far less common than a delayed exchange.

For Realtors, CPAs & title companies

We coordinate closely with your clients' CPAs, attorneys, title companies, and real estate agents to keep exchanges on schedule. Refer a client or ask a question using the form below.

Start a 1031 Exchange

Tell us about your exchange and we will help you get set up with a qualified intermediary. This is not tax or legal advice - please involve your CPA, attorney, and tax advisor.

We never collect SSNs, bank account numbers, or card numbers. See our Privacy Policy.

1031 exchange FAQs

What is a 1031 exchange?

A transaction under IRC Section 1031 that may let investors defer capital gains tax when exchanging investment property for like-kind property. Consult your tax advisor about your situation.

What does a qualified intermediary do?

A QI facilitates the exchange - holding exchange funds and preparing documentation so proceeds are not received directly by the investor.

What are the deadlines?

You generally have 45 days to identify replacement property and 180 days to complete the exchange, both starting at the sale closing.

How much does a 1031 exchange cost?

Our qualified intermediary base fee starts at $850. The final number depends on the transaction: how many relinquished and replacement properties are involved, and whether it is a straightforward delayed exchange or a reverse or construction structure, which take more work. Call 817-984-3129 for a quote. Title, closing costs, and your CPA or attorney are separate and are billed by them.

What does the QI fee cover?

Acting as your qualified intermediary on the exchange: holding the exchange funds, preparing the exchange documentation, and coordinating with your title company, CPA, and attorney through closing. It does not cover title work, closing costs, or tax and legal advice, which come from those providers directly. Ask what is included before comparing quotes, because intermediaries package fees differently.

Can I do a 1031 exchange without a qualified intermediary?

Generally no. In a typical delayed exchange, taking receipt of the sale proceeds, even briefly, generally ends the exchange and can make the gain taxable. The IRS safe harbor works by having a qualified intermediary hold the funds and prepare the documents so receipt never happens. Confirm your structure with your CPA, tax attorney, or qualified intermediary.

Can my CPA, attorney, or real estate agent act as my qualified intermediary?

Generally no. IRS rules treat people who have acted as your agent within the two years before the sale as disqualified. That includes your attorney, accountant, employee, and real estate agent or broker, and close family members are typically disqualified too. The intermediary has to be independent of you. Confirm the specifics with your CPA or tax attorney.

When do I need to hire a qualified intermediary?

Before the sale of your relinquished property closes. The exchange documents have to be in place at that closing, because once you receive the proceeds the exchange is generally lost. Call us as soon as your property is under contract, or earlier.

Does Texas have its own 1031 exchange rules?

No. Section 1031 is federal law and works the same way in Texas as in any other state. Texas has no state income tax, so the deferral in a Texas exchange is about federal tax. Confirm how this applies to your situation with your CPA or tax attorney.

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