Best 1031 Exchange Companies in Virginia: How to Compare Them in 2026
Virginia is one of the few states with a law that sets minimum protections for the companies that hold exchange money. That gives you a concrete way to compare them. Here is what the Exchange Facilitators Act requires, the firms that say they have a Virginia office, the questions that separate them, and the Virginia forms and deed taxes that come with an exchange.
On this page
The short answer
The best 1031 exchange company for a Virginia sale is one that meets Virginia's Exchange Facilitators Act, shows you in writing how your money is held and who can move it, and gives you a named person through day 180. Where it is located matters less: exchanges run by wire, e-signature and phone.
Virginia's law sets a floor on the account and the insurance. Under Va. Code §55.1-802, an exchange facilitator must keep exchange funds either in a separately identified account where withdrawals need your written authorization, or in a qualified escrow or qualified trust. Under §55.1-803, it must carry errors and omissions insurance of at least $250,000, or deposit cash or letters of credit of that amount. The Act does not require a fidelity bond, so ask each firm whether it has one.
What Virginia's Exchange Facilitators Act requires
| Rule | What it says | Section |
|---|---|---|
| Who it covers | A person that, for a fee, acts as qualified intermediary, exchange accommodation titleholder, or qualified trustee or escrow holder for Virginia property, or keeps a Virginia office to solicit that business | §55.1-800 |
| The account | A separately identified account needing your written authorization to withdraw, or a qualified escrow or qualified trust, at a financial institution | §55.1-802 |
| Errors and omissions | E&O of at least $250,000, or a $250,000 cash or letter-of-credit deposit | §55.1-803 |
| No commingling | Exchange funds may not be mixed with operating accounts or lent to affiliates | §55.1-804 |
| Change of ownership | Clients must be told within 10 business days, and the notice posted on the firm's website for at least 90 days | §55.1-801 |
| Enforcement | A civil penalty of up to $2,500 per violation, brought by the Attorney General or a local prosecutor | §55.1-806 |
The Act is Chapter 8 of Title 55.1, sections 55.1-800 through 55.1-806. We did not find a state license or registration to look up, so ask for the documents: the account agreement and the E&O declaration page.
Virginia 1031 exchange companies: what their sites say
These firms state on their own websites that they have a Virginia headquarters or office. This is not a ranking. Each entry summarizes the firm's own site as read on October 19, 2026; "not stated" means we did not find it there, not that the firm lacks it. We list only firms whose own sites give a Virginia address, which is why the list is short; many national firms serve Virginia without one. Confirm everything in writing with the firm.
| Firm | Virginia location (as stated) | Funds (as stated) | Bond / E&O (as stated) | CES on staff (as stated) |
|---|---|---|---|---|
| Realty Exchange Corporation | Gainesville; family-owned, founded in 1990 | A separate segregated FDIC-insured bank account for each exchange | E&O stated; amount not stated | Yes |
| Legal 1031 Exchange Services | Richmond office; a division of Kensington Vanguard | Segregated money market escrow accounts in the client's name and taxpayer ID | $50 million fidelity bond; $100 million E&O | Yes |
| IPX1031 | Richmond office; parent Fidelity National Financial | Not stated on the pages read | $100 million fidelity bond; $30 million E&O | Yes |
Leah Badach, CES (the author of this page) works with Virginia sellers remotely from Brooklyn, New York. She is a Certified Exchange Specialist with 11+ years of 1031 exchange experience, and the qualified intermediary she works with confirms in writing, before you sign, how your funds are held. Ask her the same questions as everyone else on this list.
How to choose among them
| Check | What good looks like | Why |
|---|---|---|
| The account type | The firm tells you which §55.1-802 option it uses and shows the agreement | It is the floor Virginia sets |
| Who can move the money | Withdrawals need your written approval, or two signatures | Fraud and errors usually start with one person able to move money |
| Bond and E&O | A fidelity bond as well as the required E&O, with certificates you can read | Virginia requires E&O only; a bond is the firm's choice |
| Who you deal with | One named person, with a backup | The 45-day identification and the closing wires are where mistakes happen |
| Nonresident sellers | Knows the Form R-5 and R-5E registration | The settlement agent will ask for it |
| The agreement | Sent to your attorney before closing | It controls when funds can be released and who earns interest |
Questions to ask any Virginia intermediary
- Which kind of account will hold my funds under §55.1-802, in whose name, and at which bank?
- Does a withdrawal need my written approval?
- Do you carry a fidelity bond as well as E&O, and can I see the certificates?
- Who earns the interest on my funds, and how is it reported?
- How do I deliver my 45-day identification, and how do you confirm receipt?
- If I buy outside Virginia, have you handled exchanges into my target state, including any state withholding or reporting there?
- Who is my day-to-day contact, and what is their training or certification?
Virginia taxes and forms at closing
- Income tax. Virginia's top rate is 5.75% on income over $17,000 (Va. Code §58.1-320), and Virginia starts from federal adjusted gross income, so gain deferred under §1031 is deferred for Virginia too.
- Nonresident sellers: registration, not withholding. Nonresidents who sell real property in Virginia must register with Virginia Tax, and the closing agent obtains the registration form (Virginia Tax). Form R-5E lists "Like-kind exchange under IRC § 1031" among exempt transfers (Form R-5E). We did not find a Virginia income tax withholding at closing for individual sellers.
- Recordation and grantor taxes. State recordation tax is 25 cents per $100 of the greater of the consideration or the value (§58.1-801); a city or county may add up to one-third of that (§58.1-814). Grantor tax is 50 cents per $500, paid by the seller unless the parties agree otherwise (§58.1-802). Where an exchange agent takes title, a 2004 Tax Commissioner ruling held that the deed to the agent and the deed from it were each subject to recordation tax (Ruling 04-97), so ask your settlement agent how your deeds will be structured.
- Wherever you buy, the federal clocks are the same: 45 days to identify in writing, and the replacement must be received by the earlier of day 180 or your tax return due date, including extensions (Treas. Reg. §1.1031(k)-1). See the full timeline and, for Northern Virginia buyers and sellers near the District, 1031 exchanges in Washington, DC.
Frequently asked questions
Is a 1031 qualified intermediary regulated in Virginia?
Yes, by the Exchange Facilitators Act (Va. Code §§55.1-800 to 55.1-806). A facilitator must hold funds in a separately identified account needing your written authorization or in a qualified escrow or trust, carry at least $250,000 of E&O or an equal deposit, and not commingle funds. The Act does not require a fidelity bond, and we did not find a license to look up.
Does Virginia withhold tax when a nonresident sells in a 1031 exchange?
We did not find a Virginia withholding at closing for individual sellers. Nonresidents register on Form R-5, and Form R-5E lists a §1031 like-kind exchange as an exempt transfer.
Do I pay Virginia recordation tax in a 1031 exchange?
Recordation tax and grantor tax apply to deeds. Where an exchange agent takes title, a 2004 Tax Commissioner ruling held that the deed to the agent and the deed from it were each taxable, so ask your settlement agent how your deeds will be structured.
Do I need a qualified intermediary located in Virginia?
No. The intermediary can be anywhere in the United States, but one handling Virginia property must meet the Act. Ask any firm how it does.
Which 1031 exchange companies have offices in Virginia?
On their own websites, Realty Exchange Corporation (Gainesville) is based in Virginia, and Legal 1031 and IPX1031 list Richmond offices. Confirm current details with each firm.
Sources
- Code of Virginia: §§55.1-800 to 55.1-806 (Exchange Facilitators Act); §58.1-320; §58.1-801; §58.1-802; §58.1-814.
- Virginia Tax: registration of nonresident property owners, Form R-5E, Ruling 04-97.
- 26 U.S.C. §1031 and Treas. Reg. §1.1031(k)-1.
- Firm details: each firm's own website, linked in the table, read October 19, 2026.
Educational information, not tax or legal advice. Firm details are as stated on each firm's website and may change; confirm them in writing.
Selling Virginia property?
Tell Leah where the property is, when you expect to close, and where you might buy. She works with investors in all 50 states, including Virginia.
Talk to Leah