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QI Services

Our Qualified Intermediary Services

A Qualified Intermediary (QI) is an essential role in every 1031 exchange. In 1991, the Section 1031 Regulations were issued 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?

A Qualified Intermediary (QI) plays a critical role in a 1031 exchange by ensuring the transaction complies with IRS requirements. The QI steps into the shoes of the Exchanger to facilitate both the sale of the relinquished property and the purchase of the replacement property. Without a QI, the transaction would be considered a standard real estate sale—not a like-kind exchange—making it ineligible for tax deferral under Section 1031.

Another key element of a successful exchange is that the exchanger 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 from the sale of the relinquished property and then transfers the funds for the purchase of the replacement property. The Exchanges sell and buy through the QI, so the Exchangers are never in receipt of the funds.

Internal Revenue Code Section 1031 states that “no gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment if such property is exchanged solely for property of like kind which is to be held for productive use in a trade or business or for investment.” Through a signed Exchange Agreement, the QI conducts the following in relation to a Section 1031 Exchange:

  • Acquires the relinquished property from the Exchanger and transfers the relinquished property to the buyer
  • Acquires the replacement property from the seller and transfers the replacement property to the Exchanger
  • 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

Julie McBride
Our office worked with Stephanie Lopez on a 1031 exchange. These types of transactions can be a bit challenging to say the least. We wanted to leave this review for Stephanie because she made it so very easy for all of us. She helped us in every way possible and was so very nice to work with. Would highly recommend. You're the BEST!!! Thanks again Stephanie!!! All of us at Warren Law Firm
Ashok Reddy
Dylan Johnson is a true expert on 1031 Exchanges, providing clear and incredibly helpful information. His expertise made a complex topic easy to understand and navigate. I highly recommend Dylan to anyone seeking knowledgeable guidance on real estate investments.
718 Management Group
Thank you so much for handling the 1031 exchange for us and making the process seamless and easy. We truly appreciate your assistance. We will gladly recommend your company to anyone who needs a 1031 exchange and will certainly return for any transactions we may need in the future.
Ryan Stevens
Excellent service start to finish. Jeremy Fahl was extremely professional and handled our 1031 exchange with no stress on us, which helped us immensely in getting our real estate transactions done efficiently.
Susan Floyd
Marita and the Accruit team are always so helpful, full of knowledge and responsive. When you're dealing with a lot of details and large sums of money, you want a team that knows what they are doing and will handle your deal correctly and asap. That's what you get with Accruit!
Tami F
“I recently attended the 1031 Exchange class and it was excellent! The instructor broke everything down in a way that was clear, practical, and easy to understand. I walked away with real strategies I can apply immediately in my real estate business. The class was not only informative but engaging, and I truly feel more confident about how to leverage 1031 exchanges to build wealth. Highly recommend this class to anyone serious about investing or expanding their real estate knowledge!
Ella Lynch
Dylan was very educated and informative. He relay the information professionally. Would love to hear another workshop
Shannon Gates
Dylan did an amazing job explaining what I didn’t know about the 1031 exchange . I truly appreciate you giving me this new knowledge! 🤩
Hunter Day
I had the pleasure of working with Mary Sherman and team at Accruit 1031. Mary was very professional, courteous, on the ball and timely with all of the moving pieces involved in my exchange. She was proactive when it came to making sure we had everything in place for closing and exchanged funds. I'm so grateful I was able to work with her, highly recommend!
Salma Shafiei
I recently attended Dylon’s 1031 exchange class, and it was excellent. He explained the process clearly, broke down complex concepts into easy to understand terms, and kept the session engaging from start to finish. His knowledge of the subject was impressive, and he provided practical examples that made the information immediately applicable. I left the class feeling confident and well-informed. Highly recommend Dylon for anyone wanting to truly understand 1031 exchanges!

We Handle All Types of 1031
Exchanges, From Simple to Complex

Accruit is a national leading 1031 Exchange Qualified Intermediary and Exchange Accommodation Titleholder boasting a highly credentialed team of experts with decades of experience facilitating all types of tax-deferred exchanges. Accruit is equipped to facilitate simple to the most complex transactions including: 

  • Forward Exchanges
  • Reverse Exchanges 
  • Built-to-Suit and Improvement Exchanges
  • Leasehold Improvement Exchanges
  • Multiple Buyers and Sellers
  • Seller Financed Transactions
  • High-Volume Exchangers
  • Multiple Relinquished and Replacement Properties
  • Fractional Interests, Delaware Statutory Trusts (DSTs) and Tenants in Common (TICs)
  • Exchanges Involving Mixed-Use Properties
  • Exchanges Involving Properties Owned Within Entities

Our team of experts is available to answer the questions you have regarding your exchange, at no cost to you! We want to help you set up your transaction in the best way possible to yield you the most benefit from your exchange. 

The Accruit Difference

When choosing a Qualified Intermediary (QI) to handle your 1031 Exchange, it is essential to exercise due diligence to ensure the proper and successful completion of your exchange. While there are many Qualified Intermediaries out there, not all are created equal. Accruit is proud to offer boutique-style service across a large volume of exchanges, based on all of the factors that set up apart from other QIs.

Years of Experience

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 exchange operations team can cumulatively claim over two centuries in the 1031 exchange business.

Qualified Professionals, Attorneys, CPAs, and Certified Exchange Specialists® on Staff

Accruit has six staff attorneys, one Certified Public Accountant (CPA), and eight Certified Exchange Specialists (CES®) on staff. CES® is a designation developed by the Federation of Exchange Accommodators (FEA) and obtained only after years of experience, qualification and testing, on staff and more in training.

Safety and Security of Exchange Funds

Accruit works with depositary banks uniquely situated to provide for the safety and security of exchanger funds, all funds are held in segregated bank accounts. 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.

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.

1031 Exchange Technology

Accruit developed the industrys 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

Accruit’s long-standing commitment to the Federation of Exchange Accommodators (FEA) includes three past presidents, five 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 exchangers.

Regulatory Measures

It’s important to note that there is currently no federal regulation of qualified intermediaries. However, with the help of the Federation of Exchange Accommodators (FEA), a number of states, have begun taking the lead in assuring higher professional standards for QIs. Some of the newly enacted requirements (which can vary from state to state) include:

  • 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

These are just some of the new state level regulatory requirements for QIs, and Accruit has taken a leadership role in making sure that legislators are fully informed in order to properly protect exchangers.