1031 Exchange – The Qualified Intermediary

The Role of Qualified Intermediary (QI)

As per section 1031, a Qualified Intermediary or QI is essential to complete a 1031 property exchange successfully. The QI plays a very important role in a 1031 exchange and serves a variety of functions. The QI creates the exchange of properties, holds the proceeds and assists with the preparation of the legal documents required for a successful 1031 property exchange.

The Qualified Intermediary/QI is a person or firm that can legally hold proceeds to facilitate a 1031 exchange. The intermediary should not be a relative or agent of the exchanging party. As an exception, a real estate agent might serve as an QI if the current transaction is the only transaction in which the agent has represented the exchanging party over the last two years.


Disclaimer:
This document/post/article is not to be considered as legal advice. Content and information contained herein is subject to changes, modifications, and may contain inaccuracies or out-of-date information. As with any legal matter or other matters of importance, consultation with an attorney or professional is the best course of action.

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