What is a Qualified Intermediary?

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What is a Qualified Intermediary?

The 1991 Treasury Rules and Regulations provide guidance on the role of the QI and the documentation they must provide to a 1031 exchange. The QI provides technical experience to maintain the integrity of the exchange. The QI receives the relinquished property from the Exchanger and sells it to the buyer. The QI purchases the replacement property from the seller and transfers it to the Exchanger. A QI can not be a related party, the Exchanger’s employee, attorney, accountant, real estate broker or investment banker, or within two years preceding transfer of the relinquished property. There is no federal agency that regulates the QI industry. Choose carefully.

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1031 Exchange