What to check before you trust anyone with exchange funds, including us.

There is no federal license for qualified intermediaries, and deposit insurance does not work the way most people assume. The practical protection is checking a few things before any money moves: who the company is, what the exchange agreement says, where the funds will sit, who can release them, and what happens if something goes wrong.

Our answers, and what you can check

Due-diligence questions with onezero3one's answer, the evidence available, and the limits of each answer

Question	onezero3one's answer	Evidence you can check	Limits
Who is the company?	ONEZERO3ONE LLC, a New Jersey limited liability company.	New Jersey business records search (public).	Registration shows the company exists; it says nothing about experience or financial strength.
What is its role?	Qualified intermediary, only under a written exchange agreement. It does not give tax or legal advice.	The exchange agreement, which you can read before signing.	Your tax advisor decides whether the exchange suits you.
Where are the funds held?	In segregated accounts at an FDIC-insured bank. Deposit insurance is subject to applicable limits and requirements.	Bank name and account titling, on request before signing.	onezero3one is not a bank. Pass-through coverage depends on how the account is titled and is combined with your own deposits at the same bank.
How are wires protected?	Wire instructions are confirmed by phone before any funds are sent.	Ask how the call-back works before your closing.	Verification reduces fraud risk; it does not eliminate it. Always confirm instructions yourself using a number you already had.
What does it cost?	The fee is set out in writing before you sign anything.	The written fee terms. See fees.	Your closing agent's and bank's charges are separate.
Can it act on my exchange?	That is confirmed before an exchange agreement is signed, including whether any state requirements apply.	The acceptance confirmation for your file.	Several states regulate exchange facilitators; see states.
What can I review before signing?	Any documents you need for your due diligence, sent on request before you sign.	Ask for them in writing.	Confidential banking details are shared only through a verified channel.

Rows appear on this page only when the evidence behind the answer has been documented. If a question you care about is missing, ask it directly.

What onezero3one handles

Forward (delayed) exchanges, reverse exchanges and improvement (construction) exchanges. Every file is reviewed before an exchange agreement is signed, including whether any state requirements apply.

Questions to ask any qualified intermediary

1. What is the exact legal name of the company that will sign the exchange agreement, and where is it registered?
2. Where will my funds be held, in whose name is the account titled, and is it separate from the company's operating funds and from other clients' funds?
3. Who can authorize a disbursement, and does it take more than one person?
4. How are wire instructions verified, and will you ever change them by email?
5. Is there a fidelity bond or errors-and-omissions policy? Can I see the certificate?
6. Who receives the interest on my funds, and how is it reported?
7. What exactly is the fee, and what happens to it if the exchange does not go ahead?
8. If my property is in a state that regulates exchange facilitators, how do you meet that state's requirements?

The guide to choosing a qualified intermediary explains why each of these questions matters.

Deposit insurance, plainly

A qualified intermediary is not a bank and is not itself insured by the FDIC. Exchange funds held in a bank account can be covered by pass-through deposit insurance only if the account is titled and recorded in the way FDIC rules require, and coverage is subject to the standard limit per depositor, per bank, per ownership category, combined with any other deposits you hold at the same bank. Large exchanges commonly exceed that limit. Ask how the account is titled; do not rely on the words "FDIC insured" alone.

Wire fraud

Exchange proceeds are a known target for email fraud, where criminals send altered wire instructions that appear to come from a closing agent or intermediary. Before any wire, confirm the instructions by telephone using a number you already had, not one in the email. Be suspicious of any last-minute change to where money should go.

Related

• Fees
• How to choose a qualified intermediary
• Forward exchange service
• 1031 exchanges, state by state.

Sources

• Treas. Reg. §1.1031(k)-1(g)(4) and (g)(6) (qualified intermediary; limits on the exchanger's rights to funds) (checked September 30, 2026)
• FDIC, Your insured deposits (pass-through coverage and limits) (checked September 30, 2026)
• NJ Division of Revenue and Enterprise Services, business records search (checked September 30, 2026)
• FBI Internet Crime Complaint Center, business email compromise (checked September 30, 2026)