1031 Exchanges in Orange County, CA - Step Four -Qualified Intermediary (QI)

Debbie Ferrari (foreground) is flanked by John and Nancy Barta,
Executive Directors of the National Council of Exchangers.

With a 1031 exchange, you MUST involve a Qualified Intermediary (QI), often called an Accommodator, before you close escrow on your sold property.

You cannot use someone that shares a business or family relationship with you. Thus, your closest consultants, such as financial advisor, stock broker, lawyer, CPA, bookkeeper, accountant, etc., may not be used. Neither can your linear relatives.

The QI is your expert to rely upon during a 1031. A QI holds onto the money from the property that you sold, or you cannot conduct a 1031 exchange.

Even if you have even the least bit of access to the money, that alone will disqualify you from a 1031 and you will have to pay taxes on the gain.

The best move is to get the Qualified Intermediary/Accommodator involved even before you close escrow on the property that you are selling.