Qualified Intermediary (QI)
The neutral third party who holds your sale proceeds so you never take receipt of the cash.
Definition
A Qualified Intermediary (QI) — also called an accommodator or facilitator — is the independent party who steps into your sale, holds the proceeds, and later uses them to buy your replacement property. You are legally not allowed to touch or control the money in between; if you do, the IRS treats it as constructive receipt and the exchange fails. The QI cannot be you, your agent, attorney, accountant, or a close relative (a "disqualified person"). xchange1031 acts as your QI and holds funds in escrow.
Why it matters
You must have a QI in place and signed on BEFORE your sale closes — you cannot add one afterward. That is the single most common way people accidentally disqualify an otherwise-valid exchange. Start your exchange early.
Related terms
General education — not tax or legal advice. This explains how §1031 exchanges work in general terms and uses simplified assumptions. Rules and tax rates change and your situation is specific. Talk to a qualified CPA or tax attorney before you rely on any of it. See our full terms & legal notice.