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The main role that a title company plays in a 1031 exchange is that they are the last line of defense for the client. Often clients don’t know about 1031 and if their escrow officer does not bring it up, then they most likely will be looking at a tax liability. Escrow officers can be heroes to their clients just by simply asking if their client is going to be doing a 1031 exchange. Escrow officers that are not familiar with 1031 could be costing their clients money that they could be deferring and using to purchase higher valued assets.

In the 1031 arena, there is little to no question that if you are not working with a 1031 exchange group, you are doing yourself a disservice as an investor. It is imperative that you are working with a group that has loads of escrow experience and their specialty is 1031 exchanges.

With that being said, you also want to make sure the group you are working with is part of a larger entity with money in the back and a diversified transaction portfolio. Why? Because when investors are looking to employ a 1031 exchange close title on a sale property, they must place the money with a qualified intermediary such as a bank or title company. You want this company to have money in the bank, and a company like ours (Fidelity National Title) has over $2.8 billion in reserve.

Having the right title company in place will help you succeed in a 1031 Exchange transaction. Plus, since hiring an in-house consulting can cost a fortune, having a good partner such as an experienced title company in the deal can make all the difference.

For more on the Fidelity National Title “Difference” go to www.fntarizona.com or send an email to
info-fntarizona@fnf.com.

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