Why a Certified Exchange Specialist® is Important
The Certified Exchange Specialist® on staff at Atlas 1031 Exchange accommodates real property 1031 exchanges worldwide.
Understanding and staying current on 1031 exchange rules is critical to accommodating a successful 1031 exchange. Anyone is legally permitted to act as a Qualified Intermediary to facilitate Internal Revenue Code Section 1031 exchanges. The lack of regulation may create a host of problems; even one mistake could invalidate the tax-deferment benefits of an exchange.
In response, the Federation of Exchange Accommodators (FEA) has established a Certification and Continuing Education Program, designed to increase the professionalism of the 1031 exchange industry and foster public confidence in selecting and working with an exchange accommodator. The program is available only to FEA members who meet specific work-experience criteria and pass an exam on exchange laws and procedures.
The test for the certification covers an array of exchange-related topics designed to challenge the candidate's knowledge of exchange rules and competency in performing the critical activities of an exchange facilitator company. The test also focuses on ethical issues that emerge when any third party controls the funds of another.
Because Section 1031 exchanges are complex transactions, the Certified Exchange Specialist® (CES®) designation is an important indicator of an accommodator's experience and knowledge. It demonstrates to a property owner that the professional they have chosen has met the key criteria necessary to perform exchange transactions accurately and ethically.
Purposes of the FEA CES® certification program:
- Establish nationally recognized standards of knowledge and experience for exchange specialists;
- Assess the level of knowledge demonstrated by exchange specialists in a valid and reliable manner;
- Encourage professional development in the exchange accommodation field;
- Formally recognize individuals who meet the requirements set by FEA; and
- Serve the public by encouraging quality Section 1031 exchange services.