1031 Exchange Fees and Pricing

1031 Exchange Place charges a flat $750 setup fee for a standard forward 1031 exchange, including the sale of one relinquished property. Reverse exchanges and improvement or construction exchanges start at $7,500. More complex transactions receive an individualized quote.

Our pricing is based on the type and scope of your exchange. Before you begin, we can review your anticipated property sales, replacement purchases, financing, and timing so you know what to ask about in a written fee quote. We have specialized in 1031 exchanges since 1997, but no qualified intermediary can guarantee a transaction’s tax treatment.

What Is Included in the $750 Forward Exchange Fee?

The published $750 fee is the base setup charge for a standard forward exchange and includes the sale of one relinquished property. As a qualified intermediary, our role is to facilitate the exchange under a written agreement, coordinate the exchange documentation and transfer of sale proceeds as applicable, and work with the closing parties.

The exact agreement should specify what is included in your transaction. If you plan to sell more than one property, acquire several replacement properties, need expedited service, or anticipate a cancellation, request the applicable fees in writing before signing. Also ask how exchange funds will be held and how any interest earned is allocated.

What Other Costs Should You Budget For?

The qualified intermediary fee is only one part of the total transaction budget. Your exchange may also involve the following third-party charges:

• Sale and purchase closing costs: title, escrow, recording, attorney, brokerage, and other charges associated with the properties.
• Financing costs: lender origination charges, appraisals, financing-related legal costs, and interest if you borrow to purchase the replacement property.
• Property due diligence: inspections, environmental reports, surveys, or other property-specific investigations.
• Specialty exchange costs: additional title-holding, entity, financing, and professional expenses that may arise in a reverse or improvement exchange.

These expenses are not all treated alike for tax purposes. Some are exchange expenses; others may be separate operating, financing, or settlement items. The IRS distinguishes these categories in Publication 544. Have your CPA or tax attorney review the actual closing statements rather than assuming every cost reduces taxable boot.

Why Do Reverse and Improvement Exchanges Cost More?

A reverse 1031 exchange may require a separate title-holding arrangement while the taxpayer disposes of another property. An improvement or construction exchange may add coordination of a property-holding structure and construction work within applicable exchange deadlines. Financing, property count, and transaction structure can affect the final fee and third-party expenses.

For those transactions, the listed $7,500 is a starting price, not a quote for every situation. Discuss the proposed transaction early so the scope and responsibilities are documented before contracts and closings are underway.

Can You Buy a Less Expensive Replacement Property?

Yes. A lower-value replacement property does not automatically disqualify an otherwise valid delayed 1031 exchange. However, retaining cash or receiving other non-like-kind consideration may result in some recognized gain. Acquiring replacement property of equal or greater value and reinvesting sufficient equity are common planning considerations for full deferral, not blanket prerequisites to having any exchange at all.

Hypothetical example: Assume an investor sells a debt-free rental property for $800,000, buys a debt-free qualifying replacement for $700,000, and receives $100,000 in cash, with no exchange expenses for simplicity. If the realized gain is at least $100,000, that $100,000 is generally recognized gain, even if the exchange otherwise satisfies Section 1031. The actual result can differ with liabilities, basis, expenses, and other facts. See the IRS Form 8824 instructions for reporting guidance.

Compare the Full Written Quote, Not Just the Base Fee

When selecting a qualified intermediary, compare the scope of service, exchange fund-handling arrangements, institutional controls, communication process, and written charges. Ask specifically whether any per-property, wire, rush, amendment, or cancellation charges apply to your exchange and how interest on funds is treated. Confirm the quoted fee directly with the provider rather than relying on a general price comparison article.

For general education on fee categories and how they differ among intermediaries, read our guide to 1031 exchange costs.