What Is a Qualified Intermediary?
The Qualified Intermediary
A Qualified Intermediary (QI), also known as a “1031 Exchange Accommodator”, is essential to any successful 1031 exchange. At 1031X, our team has more than 115 years of collective experience working as a Qualified Intermediary, making us an industry leader.
We invite you to leverage that experience to ensure your next 1031 exchange is handled properly.
What Is a Qualified Intermediary?
The Treas. Reg. §1.1031(k)-1(g)(4) defines a Qualified Intermediary as a third party to a 1031 exchange transaction that “enters into a written ‘exchange’ agreement with the taxpayer” and facilitates the selling and purchasing of investment property. It is the job of the Qualified Intermediary to limit the taxpayer’s rights to receive or obtain benefits from the proceeds from the sale of their 1031 property. In so doing, the QI allows the taxpayer the opportunity to avoid formally recognizing any income from sale that would normally be subject to taxes.
Speaking legally, the Qualified Intermediary allows a 1031 exchange to take place by creating enough distance between the real estate transaction and the property owner.

In simpler terms, a Qualified Intermediary or an Accommodator is a company that assists investors with 1031 exchanges. Think of us as your helpful guides along your real estate investment journey.
Practically, you want your QI to:
- coordinate your sale(s)
- hold and safeguard your funds
- coordinate your purchase(s)
But it should also:
- gather all relevant information
- guide you intelligently
- communicate with everyone

To review, the following CANNOT be your QI:
- You
- Your agent
- Your broker
- Your attorney
- Your accountant
- Your investment banker
- Your real estate agent
- Your employee
- …anyone who fit those categories in the last 2 years