OUR 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 do you need a QI?
The key element in a successful exchange is that the taxpayer is not, at any time, in receipt of any portion of the funds from the sale of the relinquished property, otherwise, the exchange fails. The role of the Qualified Intermediary is to ensure the 1031 Exchange stays within compliance.
In order to do so, the QI holds the funds of the relinquished property and then transfers the funds for the purchase of the replacement property, all parties buy and sell via the QI, so the taxpayers are never in receipt of the funds.
What Does a QI Do?
Per a signed Exchange Agreement the QI conducts the following in relation to a 1031 Exchange:
- Acquires the relinquished property from the taxpayer and transfers the relinquished property
- Acquires the replacement property and transfer the replacement property to the taxpayer
- Additional responsibilities of the QI include:
- Structures the exchange in accordance with the IRS regulations
- Prepares the related documentation
- Safeguards proceeds from the sale of the relinquished property(s)
- Continuously monitors and advises the taxpayer to ensure compliance with federal and state 1031 and QI requirements
What our customers think about us
Marita and Mary are true professionals—reliable, detail-oriented, and an absolute pleasure to work with. Their commitment to quality service and clear communication makes all the difference. There is just no one better in the 1031 Exchange industry than my Accruit family...No one...Thanks!
Extremely helpful
Working with Marita, our assigned success manager, is always such a pleasure! She is very prompt to answer and is always so helpful, always offers professional, concise answers to the clients questions. In fact, everyone on Accruit’s team has been stellar..
Accruit's QI Services
We Handle All Types of 1031 Exchanges, From Simple to Complex
Accruit is the leading independent 1031 Exchange Qualified Intermediary. With a team of 1031 Exchange Subject Matter Experts backed by patented technology, we are proud to offer best-in-class service on all types of 1031 Exchanges including:- Forward Exchanges
- Reverse Exchanges
- Built-to-Suit and Improvement Exchanges
- High-Volume Exchangers
- Multiple Buyers and Sellers
- Fractional Interests, Delaware Statutory Trusts (DSTs) and Tenants in Common (TICs)
- Seller-financed Transactions
- Properties held in Trusts or LLCs
- Multiple Relinquished and Replacement Properties
- Exchanges That Occur In Multiple States
The Accruit Difference
Years of Experience
Qualified Professionals, Attorneys, CPAs, and Certified Exchange Specialists® on Staff
Safety and Security of Exchange Funds
Fidelity Bonding and E&O Insurance
Accruit holds the highest levels of safety and security of funds that exceeds best practices and state regulatory requirements. Accruit maintains coverages of $50 Million Fidelity Bond, $25 Million Errors & Omissions, and $20 Million Cyber Liability.
Patented 1031 Exchange Technology
Accruit developed and patented the only 1031 Exchange workflow technology Exchange Manager ProSM. Exchange Manager ProSM provides a standardized workflow with automated deadline reminders and document creation increasing efficiencies and reducing the potential for errors throughout the 1031 exchange process.
Dedication to the 1031 Exchange Industry
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