Net lease glossary
Qualified Intermediary (QI)
An independent party that holds sale proceeds and documents a 1031 exchange so the investor never has actual or constructive receipt of the funds.
A qualified intermediary, also called an exchange accommodator, is required in a delayed 1031 exchange. The QI enters into an exchange agreement with the investor, receives the proceeds from the relinquished property sale, and uses them to acquire the replacement property. If the investor receives or controls the funds, the exchange can fail. Treasury regulations disqualify certain related parties, such as the investor's own attorney or agent within the prior two years, from serving as QI.