Qualified Intermediaries (QI)

A Qualified Intermediary (QI) is the most critical partner in your 1031 exchange. They hold your exchange funds in a secure escrow account, prepare exchange documents, and ensure your transaction meets all IRS requirements to defer capital gains taxes.

What Does a Qualified Intermediary Do?

The QI acts as a neutral third party who facilitates the exchange by taking title to your relinquished property and transferring it to the buyer, then using those proceeds to acquire your replacement property. This prevents you from having "constructive receipt" of the funds, which would disqualify the exchange.

Key Services Include:

• Preparing exchange agreements and documentation
• Holding exchange funds in segregated accounts
• Coordinating with title companies and closing agents
• Ensuring compliance with 45-day and 180-day deadlines
• Providing guidance on identification rules
• Managing reverse and improvement exchanges
• Maintaining detailed records for IRS reporting

Choosing the Right QI

Select a QI with extensive experience, proper insurance and bonding, segregated client accounts, and a strong track record. Our directory features pre-screened Qualified Intermediaries who specialize in 1031 exchanges and maintain the highest standards of professionalism.