Re: 1031 exchange advice - Posted by Jack
Posted by Jack on November 09, 1998 at 08:43:53:
Disclaimer: I have never done an exchange, but have read a little about it, so I am dangerous. But I am also curious, so…
Why does your bank (as escrow agent) charge what seems like such a high fee just to hold the sale proceeds until you close on the replacement property. What else do they do to earn that kind of fee?
As I understand it, anyone can be your escrow agent as long as they are not among the excluded group (e.g., relatives, real estate agent, your attorney, etc.).
Also, what does your attorney do for the fees rendered? And after he/she has done it for you once, is it not possible to duplicate the paper work as many do for creating LCCs, notes, etc.?
An investor I know had a local CPA handle an exchange for $1,500, which I thought was high, considering how simple they seem to be on paper.
What am I missing? I plan to do an exchange next year, and I’d like to go into it well informed.