The QI File

Nevada · NRS 645G · not legal advice

Nevada exchange-facilitator license

Nevada is one of the states that actually licenses the people who hold 1031 exchange funds. NRS Chapter 645G requires a license with the Division of Financial Institutions, a $1 million fidelity bond (or a deposit with the Division), $250,000 E&O (or a deposit), separate trust/escrow designation of client money, and written approval of both licensee and client before a withdrawal. This page reports the Nevada Law Library text as fetched. It is not a finding that a named firm holds a current license. Overview:state QI bonding.

Who is covered

NRS 645G.040 (as printed on the chapter page): an exchange facilitator is a person who, for compensation, acts as a qualified intermediary under 26 C.F.R. §1.1031(k)-1(g)(4) for a client whose relinquished property is in Nevada, or as an exchange accommodation titleholder under Rev. Proc. 2000-37 holding title to Nevada property. The term includes a person who maintains a Nevada office to solicit that business or who advertises or holds out as facilitating tax-deferred exchanges of property. Read the full definition and the NRS 645G.120 exceptions on the cited chapter — this page does not invent extra carve-outs.

License

NRS 645G.100: license required (subject to 645G.120). The Division may adopt regulations, including liquidity amounts. Application fee is the amount in NRS 645G.220. A license expires December 31 unless renewed between November 1 and December 31. NRS 645G.340: the Division shall suspend a license upon notice that the required bond, insurance, or security has been cancelled or withdrawn.

Regulator named in the chapter: Commissioner of Financial Institutions. The Financial Institutions Division notice page lists “NRS 645G - Exchange Facilitators.” Ask the QI for its current Nevada license number and expiry — The QI File does not invent registration numbers on firm pages.

Bond, E&O, and account controls

NRS 645G.320. One or more fidelity bonds totaling not less than $1,000,000, or a like deposit of money or other NRS 100.065 security with the Division. Proof to the client, including insurer name and address.

NRS 645G.330. $250,000 E&O or a like Division deposit. Proof to the client. Excess coverage is allowed.

NRS 645G.310 / .350 / .360. Dual written approval (licensee and client) to withdraw client money. Funds kept separate, deposited as trust/escrow (or similar), not the licensee’s money. No commingling as specified; funds not subject to execution on a claim against the licensee. Each licensee is a fiduciary of money and property received from the client (NRS 645G.300 on the same chapter).

What to ask on a Nevada file

  • Current NRS 645G license number, issue date, and December 31 expiry / renewal.
  • 645G.320 bond or Division-deposit evidence, and 645G.330 E&O or deposit evidence.
  • Account designation (trust/escrow) and the written dual-approval form for a withdrawal.
  • Confirm you are not looking at a Division of Insurance “exchange enrollment facilitator” (health plans).

FAQ

Does Nevada license exchange facilitators?

Yes. NRS 645G.100: except as otherwise provided in NRS 645G.120, a person shall not act as an exchange facilitator unless licensed with the Division. Licenses expire December 31 unless renewed. This is a state occupational license, not a federal QI charter.

Which Nevada agency licenses them?

NRS 645G.020 defines “Commissioner” as the Commissioner of Financial Institutions. The Nevada Financial Institutions Division (fid.nv.gov) lists NRS 645G — Exchange Facilitators among its notices. Do not confuse this with the Nevada Division of Insurance “exchange enrollment facilitator” certificate (health-plan enrollment under NRS 695J), which is a different statute.

What bond and E&O figures are in NRS 645G?

NRS 645G.320: fidelity bond of not less than $1,000,000, or a like deposit with the Division. NRS 645G.330: $250,000 errors-and-omissions insurance or a like deposit with the Division. The licensee must give a client proof of the bond and of the E&O coverage.

How must Nevada exchange funds be held?

NRS 645G.350: keep exchange funds separate from the licensee’s money; deposit in a federally insured (or approved privately insured) institution unless the exchange agreement designates another institution; designate the deposit as trust funds or escrow accounts or another name showing the money is not the licensee’s. NRS 645G.310: money held in any account for a client may not be withdrawn without written approval of the licensee and the client. NRS 645G.360: no execution/attachment on a claim against the licensee; commingling prohibited as specified.

Other state deep-dives

Related

Sources

NRS 695J (exchange enrollment facilitators for qualified health plans) is a different chapter and is not this file. This is a QI custody explainer, not a securities offering and not legal advice.