While federal regulations for 1031 exchanges allow almost anyone to become a qualified intermediary (QI), there are some limitations:
The QI cannot be the investor or a relative of the investor
The QI cannot be a disqualified person, such as the investor's employee, attorney, accountant, investment banker, broker, or real estate broker or agent
The QI must be an unrelated third party, independent of the taxpayer
The QI must comply with all federal and state regulations
When choosing a QI, you can consider things like:
Experience
Insurance, bonds, and funds management
Customer service
Costs and fees
Financial track record
Transparency about business health
Here are some other things a QI should do:
Be involved before the closing of the sale of the property
Create exchange documents that must be signed before the relinquished property is transferred
Guarantee their exchange documentation
Be easily accessible to answer questions
Agree to provide support and documentation in case of an IRS audit
Maintain a fidelity bond and errors and omissions insurance
Work closely with your attorney and the closing agent to ensure that everything complies with the 1031 exchange regulations
The Federation of Exchange Accommodators (FEA) is a trade association that supports high-quality standards in the industry and advocates for exchange facilitators. The FEA provides leadership for practitioners and education for consumers seeking QI services.
Reference: https://www.my1031pros.com/post/how-to-become-a-qualified-intermediary-for-1031-exchanges#:~:text=There%20are%20no%20specific%20educational,taxation%20and%201031%20exchange%20procedures.
DOES GA HAVE SPECIAL REQUIREMENTS or only for banks in GA?
https://rules.sos.ga.gov/GAC/80-5-6
Court Case for review: https://www.ganb.uscourts.gov/sites/default/files/opinions/08-85871.pdf
Reference for Trade association for QIs https://www.1031.org/assets/docs/Becoming_a_QI.pdf
