What does the QI do after they receive the sales and purchase agreements and title commitment from the closing agent?
The qualified intermediary tailor-makes 1031 documents specific to your transaction.
In order to do that the qualified intermediary needs to ascertain exactly how you hold title to the old relinquished property, the legal description of the property, and who the other parties to the sales contract are that need to be given certain notices in writing about your transaction and your assignment to the qualified intermediary.
So when a qualified intermediary gets started at the very beginning of the transaction they have to get their arms around all of these various details in order to tailor the documents for your 1031 transaction. They also need to be able to interface with the other parties to the transaction, including:
- Title closers
- Escrow agents
We need to interact with these and various other people in order to make sure that your closing goes smoothly and is not a dramatic and disruptive event.
- 1031 Hotline: If you have questions about what a qualified intermediary does, feel free to call me at 612-643-1031.
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