Federal Regulation of 1031 Exchange Industry Maybe Here

U.S. Government Regulation over the 1031 Exchange industry may finally be here. New regulations designed to protect real estate investors that retain 1031 Exchange Qualified Intermedairies to administer their 1031 Exchange transactions have been included in the recently passed U.S. House of Representatives Bill that would create a Consumer Finance Protection Agency ("CFPA"). The Bill would establish the CFPA as the primary regulatory body over 1031 Exchange Qualified Intermediaries.

The Act's amendment calls for the Director of the Consumer Protection Agency to review Federal laws and regulations relating to the protection of real estate investors that retain the services of 1031 Exchange Qualified Intermediaries, and subsequently recommend changes and/or improvements to the U.S. Congress.