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1031 Exchanges

1031 Exchange Qualified Intermediary Services

Cedar Top Lending, LLC acts as your qualified intermediary for Texas 1031 delayed, reverse, 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)

Last updated

What a Qualified Intermediary Does

A qualified intermediary (QI) is the independent third party that holds your sale proceeds and prepares your exchange documents in a 1031 exchange, so you never take receipt of the funds. IRS Code Section 1031 may allow you to defer recognition of capital gain from the sale of real estate when you use the proceeds to acquire replacement like-kind property. Your 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 your exchange funds until the exchange is complete. Because we also lend on Texas investment property, one team can handle the QI work and bridge financing on your 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-day 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 to find out whether we are in your range.

What moves the number is your 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 more work than a delayed one, so it costs more.

The QI fee is also not the only cost in your exchange. Your title company, closing costs, and your CPA or attorney are separate, and are billed by them rather than by us. Ask 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.

We quote your exchange from what you are selling and what you expect to buy. Call 817-984-3129 or start online.

Who Cannot Be Your Qualified Intermediary

IRS rules 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, looking back two years from the sale closing. Close family members are disqualified too.

The point of the rule is independence. Your QI holds your exchange funds so that you, and the people who work for you, never do. Your CPA and attorney still advise on whether your exchange qualifies and how it is reported. We coordinate with them through closing, but your 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 your 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 your 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-day and 180-day deadlines? Missing either one 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 exchange.

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 defer in a Texas exchange is federal. Confirm how that applies to your facts with your CPA or tax attorney.

The execution is local. 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 your replacement property needs financing, we can lend on your replacement property too.

1031 Exchange Types

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

Exchange typeUse it when
Delayed exchangeYou sell your relinquished property first, then buy your replacement within the 45-day and 180-day deadlines. The structure most investors use.
Reverse exchangeYou need to close on your replacement property before you sell the property you already own.
Construction / improvement exchangeYou want to use exchange funds to build, renovate, or improve your replacement property before you receive it.
Simultaneous exchangeYour 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

We help you get set up with a qualified intermediary for your exchange. 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 can let you defer capital gains tax when you exchange investment property for like-kind property. Consult your tax advisor about your situation.

What does a qualified intermediary do?

A QI facilitates your exchange, holding your exchange funds and preparing your documentation so you never take receipt of the proceeds directly.

What are the deadlines?

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

How much does a 1031 exchange cost?

Our qualified intermediary base fee starts at $850. The final number depends on your 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 your exchange funds, preparing your 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 you compare quotes, because intermediaries package fees differently.

Can I do a 1031 exchange without a qualified intermediary?

No. In a delayed exchange, taking receipt of your sale proceeds, even briefly, ends the exchange and can make the gain taxable. The IRS safe harbor works by having a qualified intermediary hold your 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?

No. IRS rules disqualify people who have acted as your agent within the two years before the sale. That includes your attorney, accountant, employee, and real estate agent or broker, and close family members are disqualified too. Your 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. Your exchange documents have to be in place at that closing, because once you receive the proceeds the exchange is over. Call 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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