Open1031 automates the full reverse 1031 exchange — EAT/SPE LLC formation, QEAA qualification, the 5-business-day window, and the 180-day parking clock — running 24/7 as a durable workflow that cannot miss a deadline.
Open1031 automates what they avoid — the EAT/SPE LLC formation, QEAA qualification, parking clock management, and fund-release approvals — as a durable, audited workflow.
In a standard forward exchange you sell first, then buy. In a reverse exchange you buy the replacement property before you sell the relinquished one. The problem: you can't hold both properties in a 1031 exchange at the same time — so you need an independent entity to temporarily hold title.
The platform orchestrates formation of an Exchange Accommodation Titleholder — a single-purpose entity (SPE LLC) — that takes legal title to the replacement property and "parks" it while you complete the sale of your relinquished property. The EAT exists solely for this exchange; it holds nothing else.
You identify the replacement before you've sold the relinquished property. The EAT acquires the replacement, parks title, and you complete the sale within the parking period.
You've already found the replacement but haven't sold yet. The EAT takes title to your relinquished property, you buy the replacement, then complete the sale through the EAT.
Under Rev. Proc. 2000-37, you must enter into a Qualified Exchange Accommodation Agreement (QEAA) with the EAT within 5 business days of the EAT acquiring title. Miss it and the safe harbor evaporates.
From EAT formation to title transfer, every step runs on a deterministic workflow engine that cannot miss a deadline or lose state.
Open1031's reverse exchange automation is built on the current controlling authority. We cite these honestly — including their limits.
Footnoted claims only. No fabricated metrics.
Reverse exchanges typically carry a premium surcharge — commonly $2,000–$5,000 above the standard forward-exchange fee — or a percentage of the transaction value. Reverse/improvement fees are rarely published; you discover the cost when you call.1
A flat, published platform fee — and firms on Open1031 can offer reverse at a flat client fee too. No percentage of sale proceeds, no escrow-float income. The price you see is the price.
EAT formation is typically handled by a separate law firm the QI refers you to, adding attorney fees and coordination overhead. The 5-business-day QEAA window is tracked manually. Delays happen when a hand-off falls through the cracks.
EAT/SPE LLC formation is part of the workflow. The 5-day window starts a durable countdown the moment title transfers. Neela drafts the QEAA for e-signature. No hand-off to an external attorney required for the standard QEAA — you may still want one for complex situations.
180-day parking limit is tracked on a spreadsheet or internal calendar. You're expected to call proactively. If the QI is unavailable during a holiday or staffing gap, you may not get the alert you need in time.
The 180-day watcher is a durable automated workflow. It cannot be paused by a holiday, a staffing gap, or a forgotten calendar entry. It escalates via push notification, email, and in-app alert at 30 days, 14 days, 7 days, and 48 hours before expiry.
Documentation is paper or email-based. Pulling the full exchange record for an IRS inquiry means calling the QI and waiting. Form 8824 is your CPA's job from scratch.
Every state change in the exchange — from QEAA execution to title transfer — is written to an append-only audit log. Form 8824 is auto-generated from the exchange record. Your CPA gets a pre-filled, signed-off package.
1 Reverse exchange fee ranges are based on publicly available fee schedules and industry reporting from QI industry publications as of 2025. Open1031 cannot verify the current fee schedule of any specific competitor. Always confirm directly.
Exchange proceeds go directly from your closing to a segregated, bonded qualified escrow account held by the licensed QI of record — never to Open1031, never to a commingled pool. No single actor — at the QI or at Open1031 — can release funds without multi-party workflow approval.
Your exchange funds are held by the QI of record in a dedicated, individually-titled escrow account — not a pooled fund. State-bonded QIs (CA SB 1007 and equivalents). Real-time balance visibility in the app.
No code path can move your funds without multi-party approval — enforced at the workflow level. The licensed QI holds your funds; no AI agent and no employee — at the QI or at Open1031 — can override this.
Neela guides, drafts, answers, and escalates. She never moves funds, never signs on your behalf, and never overrides the fiduciary. Her authority ends at the workflow approval boundary.
SOC 2 Type II audit in progress — controls mapped; "SOC 2 certified" label will be applied only upon audit completion.
Open1031 automates the full QEAA parking structure — EAT formation, 5-day window, 180-day clock, fund release, and Form 8824 — with a complete audit trail, so your QI can offer reverse at a transparent flat fee.
