Qualified Intermediaries

What Is the Role of a Qualified Intermediary?

A Qualified Intermediary (QI) plays a central role in ensuring a 1031 exchange is properly executed under IRS regulations. While not a legal or tax advisor, the QI works closely with your advisory team to structure the exchange, safeguard your funds, and maintain compliance throughout the process.

What a Qualified Intermediary Does:

In a typical 1031 exchange, the QI will:

• Prepare all required exchange documentation

• Hold proceeds from the sale of your relinquished property in a secure, interest-bearing escrow account

• Facilitate the purchase of your replacement property using those exchange funds

• Direct the deed transfer so the replacement property is deeded directly to you

By handling these steps, the QI ensures your transaction meets IRS standards for tax deferral—something that cannot be achieved through a standard sale and repurchase.

What a Qualified Intermediary Cannot Do:

A QI is prohibited from offering legal, tax, or investment advice about whether a 1031 exchange is right for you. That’s why it’s essential to consult your attorney or CPA before initiating an exchange.

Who Can (and Can’t) Serve as a Qualified Intermediary?

IRS regulations limit who may act as your QI. Certain parties are disqualified, including:

• Family members (parents, children, siblings)

• Your agents, such as:

• Attorneys

• CPAs

• Real estate agents

• Investment or escrow brokers

However, there is one key exception: an agent who hasn’t provided services to you within the past two years may be eligible to serve as your intermediary.

At Standard Exchange, LLC, we operate exclusively as a Qualified Intermediary. Backed by the legal and financial infrastructure of Standard Title, we provide a secure, compliant, and client-first experience for every exchange.