Choose your Qualified Intermediary with confidence
Selecting the right QI isn't just about convenience—it's about protecting hundreds of thousands (or millions) of dollars in exchange funds. A weak QI can jeopardize your entire exchange through missed deadlines, inadequate insurance, or even bankruptcy. Our checklist gives you the same evaluation framework that professional advisors use.
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Tip: Having trouble finding a QI? Browse our directory of qualified intermediaries to find vetted professionals in your area.
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A QI holds your exchange funds—sometimes for months. Financial protections like fidelity bonds, E&O insurance, and segregated accounts ensure your money is safe if something goes wrong.
Fidelity bonds protect against employee theft or fraud. Look for at least $1M coverage; $5M+ is ideal for large exchanges.
E&O insurance protects you if the QI makes a mistake that jeopardizes your exchange.
Your funds should be in segregated accounts, separate from the QI's business operations.
Accounts should be qualified escrow or trust accounts for maximum protection.
Audited financial statements demonstrate transparency and financial health.
Longer track record indicates financial stability.
An experienced QI has handled hundreds of exchanges and understands IRS rules inside and out. Credentials like FEA membership signal commitment to industry standards.
Experience matters. Prefer QIs with at least 10+ years in the industry.
Higher volume indicates proven systems and expertise.
FEA membership signals commitment to industry standards and continuing education.
Access to legal counsel ensures proper guidance on complex exchanges.
Some states require QI licensing. Compliance is essential.
Certifications like CES (Certified Exchange Specialist) demonstrate expertise.
1031 deadlines are strict. A good QI provides dedicated support, automated reminders, and educational resources to keep you on track.
A single point of contact reduces miscommunication and ensures accountability.
Automated deadline tracking is critical to avoid missing the 45-day or 180-day deadlines.
Online portals provide transparency and 24/7 access to exchange information.
Guides, webinars, and articles help you understand the process and make informed decisions.
Quick response times are essential during time-sensitive exchanges.
The exchange agreement governs your relationship with the QI. Review it carefully to understand liability, fees, and what happens if there's an error.
You should be able to review the agreement before committing. Transparency is essential.
Balanced terms protect both parties. Excessive QI liability waivers are a red flag.
QIs must comply with all state regulations where they operate.
A clean regulatory record is essential. Complaints or sanctions are major red flags.
A QI's track record speaks volumes. Client testimonials and professional references reveal responsiveness, reliability, and trustworthiness.
Multiple detailed testimonials from recent clients indicate satisfaction.
References from CPAs and attorneys who work with the QI regularly are valuable.
Positive reviews on Google, BBB, and industry sites indicate reliability.
Active complaints or unresolved issues are major red flags.
Get matched with vetted Qualified Intermediaries who meet high standards for security and service