Qualified Intermediary coordination ensures seamless communication between your QI, legal counsel, lender, title company, and brokerage throughout the exchange. The Qualified Intermediary is required to achieve safe harbor treatment under the Section 1031 regulations — it holds the net sale proceeds so the investor never has actual or constructive receipt of the funds, and it prepares the exchange agreement and assignment documentation. Any delay or miscommunication at this level can jeopardize the entire transaction.
We serve as the operational liaison between your QI and every other party, verifying that exchange agreements are executed correctly before the relinquished property closes, that funds are wired on schedule, and that the identification notice is filed within the 45-day statutory deadline. We also screen for disqualification issues up front, since an attorney, accountant, or real estate agent who represented you in the prior two years cannot serve as your Qualified Intermediary without voiding the exchange. We are not a Qualified Intermediary ourselves and never hold exchange funds — our role is to keep the process organized and moving.
Investors who coordinate QI activity in isolation often discover problems, a disqualified intermediary, a missed wire, an incomplete assignment, too late to fix before a deadline passes. A dedicated coordination layer catches issues before they become deal-breakers, protecting the deferral you are counting on.
Asset focus
Challenges
- The Qualified Intermediary holds exchange funds and prepares the exchange agreement and assignment documents, so any delay or error at this level can jeopardize the entire transaction.
- Choosing a disqualified party, such as your attorney, accountant, or agent from the prior two years, as Qualified Intermediary can void the exchange entirely.
- Deadlines and documents live across separate inboxes for the QI, lender, title officer, and brokers, with no single owner of the coordination thread.
- Investors who manage QI communication in isolation often discover a documentation gap too late to correct it before a deadline.
What we deliver
- Verification that exchange agreements and assignment documents are executed correctly before closing.
- Confirmation that exchange funds are wired on schedule and identification notices are filed within statutory deadlines.
- A single coordination point between your Qualified Intermediary and every other transaction party.
- A disqualification screen to confirm your selected Qualified Intermediary meets the safe harbor requirements.
Related services
Find replacement properties for your 1031 exchange
Understand how federal capital gains tax applies when you sell a rental
Understand the stepped up basis rule for inherited real estate
Understand the structures investors use to earn passive income from real estate
FAQ
Who can and cannot serve as my Qualified Intermediary?
Your Qualified Intermediary cannot be your attorney, accountant, real estate agent, or certain related parties who have acted as your agent within the prior 2 years. Selecting a disqualified party, even unintentionally, can void the entire exchange.
Why is the Qualified Intermediary required at all?
Section 1031 safe harbor treatment requires that you never have actual or constructive receipt of your sale proceeds. The Qualified Intermediary holds those funds and is assigned your contract rights so the exchange stays compliant.
What do you do if you are not the Qualified Intermediary?
We coordinate the operational side, confirming exchange agreements are executed correctly, funds are wired on schedule, and the identification notice is filed on time, across your QI, lender, title company, and brokers.
When should the Qualified Intermediary be engaged?
Before your relinquished property closes, ideally as soon as it goes under contract. Engaging a QI after you have already received proceeds is too late to structure a compliant exchange.
What documents does the QI typically prepare?
The exchange agreement, the assignment of your rights in the relinquished sale contract, the assignment of your rights in the replacement purchase contract, and the written identification notice template used within the 45-day window.
What is the biggest coordination risk you catch?
Miscommunication between separate parties, where the QI, lender, title officer, and broker are each working from a slightly different date or document version. A single coordination point closes that gap.