What is a
(also known as a 1031 Exchange Accommodator)
An independent person, company, or entity that enters into a written agreement with the exchanger to facilitate the transfer of proceeds from the buyer of the relinquished property to the exchanger and from the exchanger to the seller of the replacement property to effect a tax deferred exchange under IRC Section 1031.
What does a Qualified Intermediary do?
Broadly speaking, a QI performs three groups of tasks:
- Prepares the legal agreements necessary to properly structure a 1031 exchange.
- Holds and safeguards your money from the sale of a property (i.e., your 1031 proceeds) until you close on a replacement property.
- Ensures that your exchange complies with the Internal Revenue Service’s rules.
How do I pick a Qualified Intermediary?
The importance of working with a good qualified intermediary can be the difference between a smooth 1031 exchange and a nightmare (no exaggeration).