Why a Qualified Intermediary is Essential in a 1031 Exchange

Qualified Intermediary Essential

Your qualified intermediary plays several crucial roles in a 1031 exchange. In this article, we are going to talk about why a qualified intermediary is an essential element in any 1031 exchange of real estate.


There are a lot of documents required in a 1031 exchange. Making sure you have all the required documentation can be daunting for the uninitiated. An intermediary can not only ensure that your documents are in order – they can draw them up for you!

Keeping Your Exchange Funds Separate

In a 1031 exchange, you need to keep your net proceeds separate at all times to avoid constructive receipt (which can trigger boot). The best method for doing this is to have your intermediary hold the exchange funds in a segregated bank account until you are ready to reinvest them into the replacement property.

Peace of Mind

Having a qualified intermediary by your side will also give you peace of mind. You can rest assured knowing that your exchange is in good hands and that all the necessary requirements are being met.

1031 Exchange Tax Deferral

Complete your 1031 exchange today to defer your capital gains taxes on the sale of real estate. Contact the qualified intermediaries at Commercial Partners Exchange Company for guidance through the like-kind exchange process. With more than two decades of experience, our intermediaries can answer any lingering questions you have, advise you on suitable replacement properties, and prepare your 1031 documents. Reach out to us today at our downtown Minneapolis office to set up a time to chat with a 1031 exchange professional.

  • Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.

Defer the tax. Maximize your gain.


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