What is a Qualified Intermediary or QI?

A Qualified Intermediary or QI is required to successfully complete a 1031 Exchange. The QI is a recognized person or company designated by the Exchanger as a “safe harbor” to hold the transaction funds and facilitate the exchange from the Relinquished Property to the Replacement Property. Qualified Intermediaries include –

• CPA so long as the CPA has not performed work for the Seller in the last two years.
• Attorney so long as the attorney has not performed any work for the Seller in the last two years.
• Companies established to act as safe harbors – Investors Title Exchange Corporation, Lawyers Title Exchange and Starker Services.