Glossary
Qualified Intermediary
An independent third party that holds the proceeds of a sale during a 1031 exchange so the investor never takes receipt of the funds.
A qualified intermediary (QI) is a required, independent party in a 1031 exchange. Because the investor cannot take receipt of the sale proceeds and still qualify for tax deferral, the QI holds the funds between the sale of the relinquished property and the purchase of the replacement property, and documents the exchange. Engaging a QI is an early, essential step — not an afterthought.