Exchange funds sit in a segregated, state-bonded qualified escrow account held by the licensed QI of record — not commingled with any other exchange, never in Open1031's custody, and never touchable by any single actor or AI without multi-party fiduciary approval.
Instead of pooling exchange proceeds in a single corporate account, every exchange run on Open1031 uses a dedicated qualified escrow account — established in the exchanger's name, held under the licensed QI of record via a qualified escrow holder, with a separate account number.
Your exchange proceeds live in an account held for your exchange only. They are never pooled with another exchanger's funds, never used as operating capital, and never touched by an investment desk.
Your exchange dashboard shows the escrow balance, every transaction, and the running 45- and 180-day clocks in real time — no "call your QI to check the balance" experience.
The platform tracks per-state bond and registration status for the QI of record — under California SB 1007 and the equivalent Nevada, Colorado, Oregon, Washington, and Idaho statutes. A firm operates in a state only when its requirements are satisfied.
Constructive receipt — the IRS doctrine that taxes proceeds the moment you could have taken them — is the single most dangerous failure mode in a 1031 exchange. We designed around it structurally, not just procedurally.
"An AI will hold my 1031 money" is the objection we hear most. Here is the precise answer: the licensed Qualified Intermediary of record holds the funds, and that firm runs their practice on Open1031. Neela, the AI, guides the exchange. They are distinct.
Neela guides and drafts. She never moves, holds, or releases your funds — that takes multi-party approval.
Neela's responses are educational and informational, not individualized tax or investment advice. Consult your CPA, attorney, or financial advisor regarding your specific tax situation.
Every exchange on Open1031 operates under six regulatory frameworks simultaneously — some owned by the QI of record, some by the platform. Each card shows the regime, its anchor citation, and — critically — what risk it eliminates for the exchanger, not just a checkbox.
Several states impose their own QI licensing, bonding, and net-worth requirements beyond federal rules. California SB 1007 (2007) is the most stringent — it mandates a $1M+ fidelity bond, segregated accounts, written QI agreements, and annual reporting. The platform tracks per-state bond and registration status for every QI it serves; a firm operates in a state only when its requirements are satisfied.
Every write that touches an exchange, document, or fund movement produces an append-only audit-log entry that is timestamped and actor-tagged. The database refuses row deletions inside an entry's five-year retention window, and no customer-facing role can edit or delete an entry. Compliance-critical entries are also forwarded to Vectr's log-api. QI books-and-records retention, SOC 2 CC7, and your own due-diligence needs are all covered by the same log.
Sample audit log — demo data. Exchanger name, property address, account number, and SSN are synthetic.
Before you recommend a QI running on Open1031 to a client, you need more than a marketing page. Here is what the platform and the QI of record can provide directly.
The standard platform QI agreement template — the document your client signs with the QI of record, countersigned by that firm's licensed QI officer. Available for attorney review before engagement.
Request a copyThe QI of record can provide a letter from the escrow institution confirming segregation of your client's exchange funds — suitable for your files and due diligence.
Request verificationA one-page compliance summary covering the QI's licensing and bonding status plus the platform's GLBA program, SOC 2 status, BSA/AML controls, and eSign Act compliance — formatted for your practice files.
Download summaryExchange proceeds never touch Open1031. They sit in segregated, bonded qualified escrow under the licensed QI of record — watched 24/7 by deterministic workflows that cannot miss a deadline.
Open1031 is not a Qualified Intermediary. It provides workflow software to licensed QIs, who remain the fiduciary of record on every exchange, and does not provide investment advice. DST and other securities transactions are facilitated through licensed third-party broker-dealers/advisors; guidance on DST and passive replacement options is educational only. Nothing on this page constitutes tax, legal, or investment advice. Exchange outcomes depend on meeting all IRC §1031, Treas. Reg. §1.1031(k)-1, and Rev. Proc. 2000-37 requirements. Consult your CPA, attorney, and financial advisor before initiating an exchange.
SOC 2 Type II audit is in progress; formal certification has not yet been issued. All sample data — including exchanger name Matt Belcher, property address 456 Sunset Blvd, Los Angeles CA 90028, exchange amount $850,000, and SSN ***-**-6789 — is entirely synthetic and does not represent any real person or transaction.
State QI bonding status is current as of the page publication date and belongs to the QI of record. Verify current registration directly with the QI before engaging. © 2026 Open1031. All rights reserved.
