1031 Qualified Intermediary

Independent qualified intermediary services for secure 1031 exchange fund handling, deadline tracking, and closing coordination.

Our Nationwide Qualified Intermediary Services

1031 Exchange Support, Coordination, and Documentation

Exchange Agreement Preparation

Secure Exchange Fund Handling

45-Day and 180-Day Deadline Tracking

Universal Pacific 1031 has provided qualified intermediary services since 1989. Your QI prepares the exchange agreement, drafts assignment notices for the relinquished and replacement property contracts, holds the sale proceeds in a segregated trust account, coordinates the closing schedule with title and escrow, tracks the 45-day identification deadline and 180-day exchange deadline, and supports the IRS Form 8824 documentation your CPA needs. Without an independent QI, the structure typically does not qualify for tax-deferred treatment under IRS Section 1031.

Qualified Intermediary Support Structured Around Your Exchange

QI Coordination for Complex Exchanges

Title, Escrow, CPA, and Attorney Coordination

Form 8824 Documentation Support

Every 1031 exchange runs against different facts. A long-term landlord exchanging into commercial space has different timing than a developer doing a build-to-suit, which is different from an investor consolidating multiple relinquished properties into one replacement. Universal Pacific 1031 structures qualified intermediary support around your transaction, coordinating with your CPA and attorney on basis, boot, depreciation recapture, and entity-level questions. Tax and legal consequences should always be reviewed with your CPA, tax advisor, or attorney before closing.

What a 1031 Qualified Intermediary Does for Your Exchange

A 1031 Qualified Intermediary, sometimes called a 1031 exchange accommodator, is an independent third party that helps keep the exchange compliant under IRS Section 1031. The QI prepares the exchange agreement, accepts assignment of the sale contract, receives and holds exchange proceeds in a segregated trust account, coordinates with title and escrow at closing, tracks the 45-day identification deadline and the 180-day exchange deadline, and supports the documentation needed for the transaction.

Universal Pacific 1031 works with investors, CPAs, attorneys, brokers, title officers, and escrow teams to keep the exchange organized from the sale closing through the replacement property acquisition. The QI structure helps prevent constructive receipt of exchange funds by the taxpayer, which is the requirement that keeps the like-kind exchange treatment intact. Review the structure with your CPA, tax advisor, or attorney before engaging. Learn more about the 1031 exchange timeline for context on how the deadlines apply.

Documentation and Deadline Support Under IRS Section 1031

IRS Section 1031 has firm rules: the 45-day identification deadline, the 180-day exchange deadline, the like-kind requirement, the reinvestment of full proceeds, and the proper title-holding structure. A qualified intermediary helps the exchange stay on track by maintaining the chain of documentation the IRS expects on audit. That includes the exchange agreement, assignment notices, identification notices, closing statements, and Form 8824 support. Review the technical structure with your CPA or attorney before closing.

Coordination with Title, Escrow, CPA, and Attorney

Most 1031 problems happen at closing, not at the structuring stage. Title and escrow teams handle exchanges intermittently, and a small misstep on settlement statements or assignment language can put the safe harbor at risk. Universal Pacific 1031 coordinates directly with the title and escrow team at each closing, supplying the assignment notices, settlement-statement language, and exchange-fund handling instructions that keep the documentation aligned with the IRS requirements. We also coordinate with your CPA and attorney as the closing approaches.

How a 1031 Qualified Intermediary Supports Your Exchange

Exchange Timeline Reporting

Dedicated Qualified Intermediary Support

Closing and Funds Reconciliation

After your first consultation, you receive a written exchange timeline that aligns the relinquished closing, the 45-day identification deadline, and the 180-day replacement property acquisition. You get regular updates as each milestone approaches. At the end of the exchange, your CPA receives the documentation needed for IRS Form 8824, including all assignments, settlement statements, and the final disbursement reconciliation.

FAQ

What is a 1031 Qualified Intermediary?

A 1031 Qualified Intermediary (QI), sometimes called a 1031 exchange accommodator, is an independent third party that helps facilitate a 1031 exchange. The QI prepares the exchange agreement, receives and holds the proceeds from the sale of the relinquished property in a segregated trust account, and uses those exchange funds to acquire the replacement property. This structure helps prevent constructive receipt of the proceeds by the taxpayer, which is required for tax-deferred treatment under IRS Section 1031.

Why do I need a Qualified Intermediary for a 1031 exchange?

Without a Qualified Intermediary, you would have constructive receipt of the sale proceeds, which typically disqualifies the exchange from tax-deferred treatment. The QI keeps the exchange proceeds in a segregated account, prepares the exchange agreement and assignment notices, and coordinates closing of both the relinquished and replacement properties. This separation is what makes the like-kind exchange safe-harbor available.

How much do Qualified Intermediary services cost?

Qualified Intermediary fees typically run $850 to $1,500 for a forward (delayed) 1031 exchange. Reverse and improvement exchanges cost more because they require an Exchange Accommodation Titleholder (EAT) structure, typically $6,000 to $12,000. Universal Pacific 1031 uses flat-fee pricing with no junk charges. The final quote is set after a free consultation.

What does a Qualified Intermediary do?

The QI prepares the exchange agreement, drafts assignment notices for the relinquished and replacement property contracts, holds the exchange proceeds in a segregated trust account, coordinates the closing schedule with title and escrow, tracks the 45-day identification deadline and 180-day exchange deadline, and prepares the documentation your CPA needs for IRS Form 8824 at tax time.

When should I contact a Qualified Intermediary?

Contact a Qualified Intermediary before closing on the sale of the relinquished property. The exchange agreement must be in place at the time of sale, and the QI must accept assignment of the sale contract before proceeds change hands. Most investors engage the QI seven to fourteen days before the scheduled closing date. Contact Universal Pacific 1031 as soon as the relinquished property is in escrow so the documents and assignments can be prepared on time.

Can my CPA, attorney, or real estate agent act as my QI?

In many cases, a person who has acted as your agent within the prior two years may be disqualified from serving as your Qualified Intermediary. That can include your CPA, attorney, real estate broker, and other ongoing service providers. A valid QI is an independent third party. Investors should confirm their facts with a CPA or tax advisor before choosing a QI. Universal Pacific 1031 works closely with your existing CPA and attorney without compromising the independence requirement.

How are exchange funds held during a 1031 exchange?

Exchange funds at Universal Pacific 1031 are held in a segregated trust account at a major institutional bank, not co-mingled with operating funds. We carry Errors and Omissions insurance and a fidelity bond, are members of the Federation of Exchange Accommodators, and have licensed CPAs on staff. Daily reconciliation reports and audit trails are available on request. When evaluating any QI, ask how exchange proceeds are held, whether funds are segregated, what account controls are used, and whether the provider maintains appropriate insurance, bonding, or internal safeguards.