Our state of the art "triple protection" program ensures the highest level of security.
To implement this approach, we use the Customers Bank, headquartered in New York or Axos Bank, headquartered in San Diego. Both banks provide specialized services for 1031 depositors including direct 1099s, seamless execution and copies of monthly statements.
Step 1: New Separate Bank Account Protection
A new individual bank account is established for your specific exchange. It is opened using the exchanger's tax ID # and labeled "for the benefit of" (F/B/O) the exchanger. The proceeds from the relinquished sale are wired directly into this account, are never commingled with other client’s funds, and you receive a monthly account statement from the bank each month.
Step 2: Dual Written Authorization Protection
The bank requires your signature approval before funds can be dispersed from the account. We make it easy and will prepare the “bank require” disbursement request for your review and signature. When funds need to be released for earnest money, a closing, or to close out your account, we will then sign and forward the disbursement request to the bank on your behalf.
Step 3: Qualified Escrow Agreement Protection
Every transaction uses a Qualified Escrow Agreement that is signed by you, the bank and ADE. This separate document legally establishes your ultimate legal ownership of the funds and specifies that your signature is required for funds to be moved, while still complying with the 1031 Regulations.
Please take a moment to watch our brief Safety of Funds Triple Protection video.