QUALIFIED INTERMEDIARY SERVICES
A qualified intermediary (QI) is an essential role in every 1031 exchange. In 1991, the IRC Section 1031 regulations were updated to require the use of an impartial third party to hold funds when conducting the sale and purchase of real estate through a 1031 exchange. Thus, the role of the QI was born.
The Role of the QI
Why does the QI role exist?
What does a QI do?
- Structuring the exchange
- Preparing the related documentation
- Safeguarding proceeds from the sale of the relinquished property(s)
- Continuous monitoring and advising to ensure compliance with federal and state 1031 and QI requirements
Selecting a QI
Years of Experience
How long has the exchange company been actively engaged in the exchange industry?
Accruit and its subsidiaries have been actively involved in real estate, trust administration and 1031 exchange transactions since 1978. Accruit’s executive team and experienced client service representatives can cumulatively claim nearly two centuries in the 1031 exchange business.
Dedication to the 1031 Exchange Industry
Is the company actively engaged with like-kind exchange-related matters? Is it an active member of the Federation of Exchange Accommodators (FEA)? Are 1031 exchanges their primary business or an add-on service?
Accruit’s long-standing commitment to the Federation of Exchange Accommodators includes three past presidents, four past and present FEA board members and multiple FEA committee members. Accruit has helped lead efforts in Washington, D.C. to preserve Section 1031 exchanges for taxpayers.
Certified Exchange Specialists® on Staff
How many employees of the company are Certified Exchange Specialists® (CES), a designation developed by the FEA and obtained only after years of experience, qualification and testing?
Accruit has five Certified Exchange Specialists® on staff and more in training.
Attorneys, CPAs and other Qualified Professionals on Staff
Does the company maintain in-house attorneys, certified public accountants and other professionals as key resources?
Accruit has five Certified Exchange Specialists, one CPA, four attorneys (one with an LLM in tax), dedicated in-house banking and finance staff and dedicated in-house IT staff.
Safety and Security of Exchange Funds
How does the company provide for the security of exchanger funds?
Accruit works with depositary banks uniquely situated to provide for the safety and security of exchanger funds. Accruit has the ability to provide dual signature accounts requiring exchanger approval before the movement of exchanger funds. It also has the ability to provide qualified trust and escrow accounts to further protect deposits.
Exchange Services
Fidelity Bonding and E&O Insurance
Regulatory Measures
- Qualified escrow and/or trust accounts for client funds
- Minimum bond and insurance requirements
- Fund withdrawal authorization requirements
- Registration and licensing requirements for QIs
- Investment limitations on exchange proceeds