You cannot touch the money. That is the rule.
If the sale proceeds pass through your hands — or even an account you control — the exchange is dead and the gain is taxable. A qualified intermediary holds the funds so it never happens.
Why you need a qualified intermediary
Constructive receipt kills exchanges
It is not only about physically receiving a check. Having the right to direct the funds is enough to blow the deferral.
The QI has to be in place before closing
You cannot sell first and hire an intermediary afterward. The exchange agreement has to be signed before the relinquished property closes.
Your agent, attorney and CPA cannot serve
Disqualified persons include anyone who has been your agent within the prior two years. That rules out most of the people already on your deal.
Three steps, and we carry most of them
Call before you close
We confirm an exchange fits, map the deadlines against your timeline, and put the exchange agreement in place before the sale closes.
We hold the proceeds
Funds go from the closing table to us, never to you. That is what keeps the deferral intact.
You buy, we close it out
You identify and negotiate the replacement property. We handle the documentation, the funding and the reporting trail.
1031 Specialists
This is the part investors get wrong most often, usually with good intentions — a title company wires proceeds to the seller because nobody told them otherwise. Bringing in the intermediary early costs nothing and removes the risk entirely.
We are a qualified intermediary for IRC Section 1031 tax-deferred exchanges, facilitating exchanges for real estate investors in all fifty states. We handle the exchange agreement, the identification and closing deadlines, and the custody of exchange funds. Every exchange includes unlimited tax optimization consulting, audit protection and an attorney guarantee, on a simple flat fee you pay at close.
Why you need a qualified intermediary, answered
What does a qualified intermediary actually do?
Holds the exchange funds so you never have receipt of them, prepares the exchange documents, and keeps the transaction inside the deadlines and the rules.
Can my attorney or CPA hold the funds instead?
No. Anyone who has acted as your agent within the prior two years is a disqualified person, which rules out most of your existing advisors.
What if my property already closed?
If the proceeds have been released to you, the exchange cannot be started retroactively. Call before the closing, not after.
Talk to someone before the clock starts
Reach me directly, or call the main line and ask for anyone on the exchange team.
Main line
(631) 438-1031General email
info@1031specialists.comMailing address
30262 Crown Valley Pkwy, Suite B 464Laguna Niguel, CA 92677
The information on this page is general in nature and is not tax or legal advice. 1031 Specialists is a qualified intermediary, not a law firm, accounting firm or investment adviser. Consult your own tax and legal advisors about your circumstances before entering into an exchange.