What is an Exchange Accommodation Titleholder?
Following the IRS guidelines, Reverse Exchange Services, Inc. (RES) acts as the “Exchange Accommodation Titleholder” to assist the Exchanger in completing its tax-deferred 1031 exchange. RES and the Exchanger enter into a written “Qualified Exchange Accommodation Agreement” (or “QEAA”) whereby RES agrees to purchase and hold title to the “parked” property until the Exchanger is ready to sell its Relinquished Property. When the Relinquished Property is sold, the exchange proceeds are used to acquire the Replacement Property from RES.
