What is the role of the Qualified Intermediary in a 1031 exchange?

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What is the role of the Qualified Intermediary in a 1031 exchange?

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The role of the Qualified Intermediary, as provided in the Regulations, cannot be that of a disqualified person or an agent of the taxpayer for purposes of a tax-deferred exchange. A disqualified person or agent is one who has acted as the taxpayer’s employee, attorney, accountant, investment banker or broker, or real estate agent or broker in the two years prior to the exchange, related parties and other beneficial interests. In order to meet the requirements of the Regulation and have a successful exchange, the Qualified Intermediary must (1) enter into an Exchange Agreement with the taxpayer whereby the taxpayer’s rights to receive, pledge, borrow, or otherwise obtain the benefits of money or other property are expressly limited; (2) be assigned the sales and purchase agreements for the relinquished property and replacement property, with written notification of the assignment to all parties to those agreements; and (3) hold the net sale proceeds in its account or with a qualified e

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