When choosing a Qualified Intermediary many factors come into play. Of extreme importance, however, is whether the QI has a CESŪ on staff. The CESŪ designation was developed by a group of forward-thinking members of the Federation of Exchange Accommodators, the national trade association for 1031 exchange qualified intermediaries. These leaders knew that exchangers should be able to rely on their QI to conduct a valid exchange and provide accurate exchange advice. Prior to the CESŪ designation, there were few ways to differentiate between QIs with adequate experience and training and those QIs who lacked these necessities. Thus, the CESŪ designation was born.
In order to obtain become a CESŪ, a candidate must have at least three years’ experience in all aspects of 1031 exchanges. Once acquiring the requisite experience, the candidate must pass a rigorous written examination and pledge to adhere to a strict Code of Ethics. Furthermore, the CESŪ must earn continuing education credits each year, including continuing ethics compliance.
While there are certainly qualified professionals acting as QIs who do not have the CESŪ designation, most of the best QIs do have someone on staff with this designation. Note that the CESŪ designation is for individuals, not companies. Currently, there is no equivalent designation for companies.
So, when searching for a QI, one of the first things to look for is a CESŪ on staff.
Tags: 1031, 1031 exchange, All States, Certified Exchange Specialist, CES, FEA, Federation of Exchange Accommodators, QI, qualified intermediary