A qualified intermediary (QI; also referred to as an exchange faciliator or accommodator) is a neutral third party that facilitates the 1031 exchange transaction by holding the proceeds from the sale of the relinquished property and using them to acquire the replacement property. The QI plays a critical role in ensuring that the exchange is properly structured and executed in compliance with IRS regulations. It’s important to choose a reputable and experienced QI who is familiar with the rules and requirements of 1031 exchanges, and who has a track record of successfully completing exchanges for their clients.
