Choosing a Qualified Intermediary for Your 1031 Property Transaction
Written by admin on May 11th, 2011
If you are considering a 1031 property investment, then you will need to seek the services of a Qualified Intermediary (also referred to as a QI). This may seem like a simple task but since there are no uniform licensing requirements or oversight regulations for those in these positions it makes it a little more difficult to find someone to play this vital role in your investment.
So, what should you look for when selecting a QI to handle your 1031 transaction?
Experience
This is not a job for the complete and utter novice. Someone who has no experience doing these might miss a critical step and put the entire transaction in jeopardy. It is too important to trust to someone who hasn’t had the proper amount of experience in 1031 tax exchange real estate transactions.
Knowledge
While often equated, knowledge and experience are not the same thing. You want someone that has experience but you also want someone with prolific knowledge of the rules, regulations, legalities, and exceptions. There are too many things in fine print that can be overlooked by someone who lacks the in-depth knowledge of 1031 property exchanges to carry out the job properly.
Reputation
The role of Quality Intermediary is a role that requires a great deal of trust. It should not be offered or entrusted to someone who doesn’t have a solid reputation for ethical business dealings and fair treatment of all parties involved. If you ask around, you should be able to find several people who will affirm the reputation of the person or company you ultimately choose to represent you as Quality Intermediary.
Look for these things and you should have a QI that will serve you well.
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