Top Q: Can the Qualified Intermediary advance funds from the exchange for the fees and costs needed to acquire the replacement property?

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Top Q: Can the Qualified Intermediary advance funds from the exchange for the fees and costs needed to acquire the replacement property?

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Funds can be disbursed to escrow for earnest money or common expenses such as appraisals and credit reports when the Qualified Intermediary has been assigned into the transaction in place of the exchanger. Funds must be requested by escrow (not the exchanger) to avoid the issue of the exchanger’s control of the funds. If the exchanger advances any of these funds they can be reimbursed at the close of the escrow without triggering any taxes.

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