Are reverse 1031 exchanges considered legal?

Yes, although they can sometime become complex and always require appropriate planning. Most of our Qualified Intermediary or facilitator partners are owned by banks. This means that in most cases they will not handle reverse 1031 exchanges because liability reasons prevent them from holding title to property on behalf of an Exchanger. Provident suggests contacting one of our Partners for your reverse 1031 exchange planning and execution. They have demonstrated its unique planning and execution capabilities over a course of several years and they work closely with the most experienced tax attorneys in the country.