In today’s real estate market, the safety of exchange proceeds is critical—especially when it comes to 1031 tax-deferred exchanges. Idaho is one of the few states to enact legislation specifically regulating Qualified Intermediaries (QIs), offering additional security for taxpayers. At 1031 CORP., we’re proud to announce that we have successfully renewed our Idaho QI license, reinforcing our long-standing commitment to exceeding regulatory requirements and protecting our clients at the highest level.
Overview of Idaho’s Escrow Law for Qualified Intermediaries
Passed in 2010, Idaho Code Section 30-20-301 set the standard for how QIs must operate when facilitating 1031 exchanges within the state. The law was created in response to cases of QI fraud and insolvency, which left some taxpayers unable to recover their funds.
Idaho’s QI law requires:
- Fiduciary Duty: QIs must act in the best interest of the taxpayer, with full transparency and accountability.
- Segregated Accounts: Exchange funds must be held in qualified escrow or trust accounts, not commingled with operating funds.
- Financial Safeguards:
- A minimum $1 million fidelity bond
- At least $250,000 in errors and omissions (E&O) insurance)
- State Registration: QIs must register with the Idaho Secretary of State and provide details on their officers and financial protections.
- Annual Reporting and Compliance: Licensed QIs are subject to annual filings to maintain good standing.
These requirements make Idaho one of the most protective states for taxpayers engaging in 1031 exchanges.
Benefits of Using an Idaho-Licensed QI
Selecting a QI that meets Idaho’s requirements provides meaningful benefits to taxpayers:
- Protection of Exchange Proceeds: Segregated, secured accounts reduce the risk of misappropriation or financial loss.
- Fraud Prevention: Bonding and insurance coverage create a critical safety net in the event of theft, error, or negligence.
- Increased Transparency and Trust: State oversight ensures QIs are acting in the best interests of their clients.
- Enhanced Due Diligence: Choosing a QI with Idaho licensing shows a commitment to high standards and operational integrity.
1031 CORP. – Exceeding Idaho’s Standards from the Start
While we are proud to be an Idaho-licensed Qualified Intermediary, 1031 CORP. has always gone well beyond what Idaho law requires. Renewing our license is not just a regulatory milestone—it’s a reaffirmation of our unwavering commitment to client protection and industry leadership.
Here’s how we go above and beyond:
- Multi-Million Dollar Fidelity Bond: Far surpassing the $1 million minimum, this bond protects clients from employee dishonesty and criminal acts.
- Extensive Professional Liability (E&O) Insurance: Our professional liability coverage is well above the state-required $250,000, providing robust protection in the event of an error or omission.
- Use of Qualified Escrow Accounts: We ensure all exchange funds are placed in separate, secure accounts with limited access, further safeguarding your investment.
- Voluntary Best Practices: Our internal controls, compliance reviews, and continuous training programs reflect our dedication to integrity, transparency, and excellence.
At 1031 CORP., our clients aren’t just protected—they are prioritized. We’ve built our reputation on doing the right thing, even when no one’s looking. Exceeding compliance isn’t just a goal—it’s our culture.
Final Thoughts
Idaho’s QI escrow law provides important protections for taxpayers—protections we believe should be the standard nationwide. 1031 CORP. has once again renewed its license with pride, continuing to demonstrate industry-leading practices that give our clients confidence and peace of mind.
Planning a 1031 exchange? Choose a QI that’s not just licensed—but trusted. Contact 1031 CORP. to learn how our commitment to security and stewardship sets us apart.
