Maximize your real estate strategy with confidence, trust and full service.
First American’s unique structure and deeply rooted real estate experience gives us the competitive edge in providing full support in every phase of your real estate investment.

The First American Family of Companies is your trusted partner in real estate strategy.

• First American Financial Corporation, our parent company, has a rich heritage in real estate dating back to 1889.

• First American Trust^® empowers real estate investors to defer taxes by sourcing Delaware Statutory Trust (DST) Investments and UPREITs to simplify your real estate holdings, provide consistent cash flow and support long-term legacy planning.

• First American Exchange Company^{TM 1} is a qualified intermediary and the leading provider of tax-deferred 1031 exchanges. From a simple rental property to the most complex commercial real estate investment, our experts work with you and your tax advisors to make your 1031 tax exchange transaction as seamless as possible.

Discover the benefits of a 1031 exchange for your DST or UPREIT investment.

• Tax Deferred Advantages. A 1031 Exchange allows you to dispose of investment properties and invest in DST and/or UPREIT interests, while deferring federal capital gains.

• DSTs and UPREITS. Passive real estate investments that allow investors to own fractional interests in investment properties—offering stable income, possible tax
  deferral through 1031 exchanges and diversification, without the burden of active management.

• One of the Largest and Nationally Qualified Intermediaries. First American Exchange Company^TM is a full-service exchange company that provides Delayed, Reverse and Construction Exchange services.

• Safe and Secure Deposits. Our exchange funds are strictly deposited with FDIC insured institutions with investment grade ratings. First American’s Treasury team closely monitors the financial stability of these institutions.

• Regulated. Our exchange company operates under strict oversight from our parent company and the Department of Insurance, giving you added protection and peace of mind in your transaction.

• Insured and Bonded. All exchange funds are backed by a multimillion-dollar fidelity bond and professional liability insurance policy from a leading independent insurance underwriter.

1031 Exchange starts with ”like-kind” properties.
Any real property can be exchanged, provided it’s held “for productive use in a trade or business,” or “for investment,” and is exchanged for property of like-kind that will also be held for one of these same purposes.

All real property asset classes are considered “like-kind” to other real property asset classes. A single-family rental unit, for example, maybe used to acquire another like it, or to purchase a warehouse, retail center, or office building.

The rules are clear and simple:

• Identification period. The property you’re acquiring must be identified within 45 days of the transfer of the first relinquished property.

• Exchange period. The acquisition of your replacement property must be completed by the earlier of 180 days from the transfer of the relinquished property or the due date of your tax return for the year in which the relinquished property was transferred.

• Trading up. To be fully tax-deferred, the property you’re acquiring must have value and equity equal to, or greater than, the relinquished property.

You may identify the replacement property by your choice of one of the following:

• 3-property rule. Three properties, no matter what their value is.

• 200 percent rule. Any number of properties, as long as their combined fair market value isn’t more than twice that of all relinquished property.

• 95 percent rule. Any number of properties, regardless of their combined fair market value, as long as you acquire 95 percent of that total value.

¹ First American Exchange Company™ operates as a direct subsidiary of First American Title Insurance Company. First American Title Insurance Company is the largest subsidiary of First American Financial Corporation.

For more details, contact your Relationship Manager
or call 877-908-7878.

The following article is for informational purposes only and is not and may not be construed as legal, tax and/or investment advice. Investments contain risks, no third-party entity may rely upon anything contained herein when making legal, tax and/or investment determinations regarding its practices, and such third party should consult with an attorney, tax advisor and/or an investment professional prior to embarking upon any specific course of action.

Past performance is no guarantee of future results. Individual account performance will vary. Not FDIC insured. No Bank guarantee. May lose value.