<p><span style="tab-stops:268.0pt"><b>DENVER, CO –</b> Accruit, a financial technology company specializing in escrow and 1031 exchange services, today announced the general availability of its fifth major release of its Exchange Manager application that makes tax-deferred exchanges of real estate safe, secure and simple for both clients and advisors. With this unique app, investors and advisors can more easily participate in 1031 exchange transactions that provide increased cash flow of up to 40 percent of asset sales. </span></p>

<p><span style="tab-stops:268.0pt">The only app of its kind, Exchange Manager allows for smooth, efficient and secure management of 1031 exchanges with paperless processing, mobile access, deadline-tracking and automated exchange notifications. All documents are handled through the online system and can be signed electronically. In addition, Exchange Manager allows clients, advisors and tax attorneys to enter data directly into the app and quickly export exchange reports at tax time, as well as provides access to deposits, reports and documents at any stage of the process. Transaction data is protected by 256-bit encryption and is filtered through a web application firewall. Additionally, all transaction data is continuously backed up.</span></p>

<p><span style="tab-stops:268.0pt">“For more than 15 years, Accruit has been the recognized leader in escrow and 1031 exchange solutions. In fact, in 2002, we transformed personal property exchanges with our patented exchange automation platform. Our new web-based and mobile-ready Exchange Manager sets a new standard in 1031 exchange solutions by streamlining the exchange process for single exchange clients in an industry that relies on manual exchange transactions,” said Karen Kemerling, president and COO, Accruit.</span></p>

<p><span style="tab-stops:268.0pt">“Accruit has always been known as the leader in 1031 exchange technology, and Exchange Manager offers a huge leap in value to our clients,” said Martin Edwards, Accruit’s EVP and general counsel and a 35-year veteran of the 1031 exchange industry. “Deadline-tracking, management of replacement property identification, and the ease of reporting – any one of these alone would qualify Exchange Manager as a big step. Combined, they’re a game changer. We now spend a lot less time processing and more time adding value for our clients.” </span></p>

<h2><span style="tab-stops:268.0pt">About Accruit</span></h2>

<p><span style="tab-stops:268.0pt">Accruit, LLC is a financial technology company that facilitates all types of commercial and individual transactions as a trusted independent escrow agent and qualified intermediary. Accruit specializes in 1031 like-kind exchange services and escrow, including Digital Vault, an escrow solution for digital assets, and PaySAFE®, providing protection to buyers and sellers in online transactions. Learn more about <a aria-label="Paysafe" href="https://paysafeescrow.com/&quot; title="Paysafe">PaySAFE®</a>.</span></p>

<p>Accruit joins participants from all segments of the oil and gas supply chain industry to discuss the role of escrow in the recovery of surplus and idle assets at the 2018 Energy Insight Conference.</p>

<p>&nbsp;No useful reason exists to think of or treat a closing like litigation although it does happen.&nbsp; Everyone involved needs to work together in a cooperative way to consummate the deal.&nbsp; Real estate law is a function of locality and custom in many respects; however, we will generally review some commonalities in the closing of a real estate transaction. &nbsp;</p>

<p>Most real estate transactions begin with a written contract and end with a closing.&nbsp; The following parties are typically involved in negotiating, performing and closing on the contract:</p>

<ul>
<li>Seller</li>
<li>Buyer</li>
<li>Real estate agents</li>
<li>Attorneys (depending on locality and complexity)</li>
<li>Lender (if not a cash deal or other financing arrangement)</li>
<li>Title company</li>
</ul>

<p>All agreements for the purchase and sale of real estate must be in writing.&nbsp; The contract sets forth the conditions under which the seller agrees to transfer and the buyer agrees to purchase the property.&nbsp; The contract may be lengthy or pithy, complex or straightforward, but its ultimate purpose is to convey ownership of the property to the buyer under mutually agreed upon terms. &nbsp;</p>

<p>Occasionally, a real estate transaction may involve an IRC Section 1031 tax-deferred exchange. The tax code and treasury regulations also provide certain rules that address <a href="/blog/all-tax-deferred-exchange-companies-are-not-created-equal">conveying real estate in a tax deferred exchange</a>.&nbsp; A qualified intermediary (QI) is generally required and is a person or entity that is not a “disqualified person” as defined under the tax code.&nbsp; For the most part, <a href="https://www.youtube.com/watch?v=Pi4l_dQgoh8&quot; target="_blank">a disqualified person</a> is someone who is under the control, or an agent, of the taxpayer.&nbsp; The QI enters into a written exchange agreement with the taxpayer pursuant to which the QI agrees to acquire and transfer both the relinquished (old) and replacement (new) properties to the taxpayer.&nbsp; For exchange purposes, these transfers to and from the QI can be accomplished if the party’s rights are assigned to the QI and all parties to the contract are notified in writing of the assignment on or before the closing date (see: <a href="/blog/case-study-forward-exchange-real-estate">Case Study: A Forward Exchange of Real Estate</a>).&nbsp;&nbsp;</p>

<p>On the date set forth in the contract, the parties will gather at a title company office to close the transaction.&nbsp; One of the seller’s most basic contractual duties is to convey the marketable title to the buyer.&nbsp; Title is “marketable” if it covers the entire property that the seller is purporting to convey to the buyer and is free of encumbrances that a reasonable buyer would not accept.&nbsp; In other words, it needs to be demonstrated that the seller actually owns the real estate and has a right to transfer ownership to the buyer free from unacceptable title defects. &nbsp;</p>

<p>The seller will prove the title is marketable by way of a title commitment or title report issued by a title insurance company.&nbsp; A title commitment is prepared by the title company (or attorney depending on locality) based upon a title search of the public records to see which documents have been recorded against the property.&nbsp; It is the seller’s obligation to remove or otherwise satisfy any unacceptable conditions not agreed to in the contract that may be set forth in the title commitment.&nbsp; Examples of unpermitted or unacceptable title exceptions may include mortgage, tax, mechanics’ liens, encroachments or other such encumbrances.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;</p>

<p>At closing, the seller will deliver properly executed and notarized conveyance documents and other documents to the buyer and title company.&nbsp; Examples of such closing deliverables may include the deed, bill of sale, plat of survey, and settlement statement.&nbsp; Possession of the real estate is usually surrendered to the buyer at the closing.</p>

<p>The buyer’s principal obligation at the closing is to pay the purchase price to the seller in consideration for the property.&nbsp; Unless it’s a cash deal, the buyer will typically procure a mortgage loan from a lender for purposes of financing all or portion of the purchase.&nbsp; The buyer’s lender will have its own documents and requirements that will need to be satisfied on or before the closing in order for the buyer to obtain the loan.&nbsp;&nbsp;&nbsp; &nbsp;</p>

<p>Lastly, the title insurance company plays an important part in a real estate closing on behalf of all the parties.&nbsp; The title company will waive, insure over, or otherwise resolve all matters set forth on the title commitment.&nbsp; If the buyer is utilizing a lender, the title company will review the loan documents, ensure they are accurate as well as properly executed, and obtain any required information or documentation from the parties.&nbsp; The title company also acts as the disbursing agent for the seller and buyer.&nbsp; At closing, the title company will collect the purchase proceeds from the buyer and its lender (if any) and disburse the funds as set forth in the final settlement statement.&nbsp; After the closing has occurred, the title company will issue an owners’ policy (and loan policy if applicable) in addition to sending certain documents of record, such as the deed and mortgage, to be recorded in the County Recorder of Deeds Office where the real estate is situated.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;</p>

<p>In sum, it is advantageous to know the parties and possess a knowledge of established procedures for purposes of effectively navigating the real estate closing process.&nbsp; The foregoing is especially important if the transaction qualifies for a tax deferred exchange under Section 1031. &nbsp;</p>

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<p>On Friday, March 30, Accruit's Martin Edwards and Jordan Born joined other members of the Federation of Exchange Accommodators (FEA) in a meeting with Rep. Raja Krishnamoorthi (D-IL-8) to discuss 1031 like-kind exchanges and their value to economy.</p>

<p>Like-kind exchanges have persisted in the tax code for nearly 100 years because of their benefits to the United States economy and to the local economies in which they are transacted. Economic studies by Ernst &amp; Young and Ling &amp; Petrova underscore the potential negatives to the economy of the repeal of Section 1031.</p>

<p>Rep. Krishnamoorthi, who met with the FEA members in his Schaumburg, IL district office, expressed his belief that there is currently broad bipartisan support for like-kind exchanges in Congress.&nbsp;</p>

<p>The John Marshall Law School in Chicago, Illinois hosted a Careers in Real Estate Law program on Thursday, March 29, 2018.&nbsp; Jordan Born, Associate General Counsel for Accruit, was a panel speaker at the event in which alumni of the LL.M. Real Estate program discussed their career paths and practice in Real Estate Law to both J.D. and LL.M. students.&nbsp; It was a great opportunity to espouse the services that Accruit provides to the attendees and Director of the Center for Real Estate Law, Professor Celeste Hammond.&nbsp; Jordan enjoyed being a part of the discussion and looks forward to future informational sessions and panel discussions through The John Marshall Law School Center for Real Estate Law.</p>

<p><a href="/blog/1031-real-estate-exchanges-what-like-kind">What qualifies as like-kind in a 1031 like-kind exchange?</a> In this video, Paul Holloway discusses specific examples of like-kind real estate including lesser known types such as mineral interests, water rights and <a href="/blog/fractional-ownership-real-estate">fractional ownership interests</a>.</p>

<p>Want to see more short videos on 1031 topics? <a href="https://www.youtube.com/c/Accruit&quot; target="_blank">Subscribe to our YouTube channel</a>!</p>