The 1031 Exchange Institute

Welcome to The 1031 Exchange Institute™. The 1031 Exchange Institute is your complete online resource for 1031 exchange, 1033 exchange, 1034 exchange, 721 exchange, 453 installment sale and 121 exclusion information.  Information will also be provided regarding Self-Directed IRAs, including Traditional IRAs, ROTH IRAs, SEP-IRAs and SIMPLE IRAs. 

The 1031 Exchange Institute is dedicated to educating and informing real estate investors and their advisors on the benefits of 1031 tax-deferred exchanges and other tax deferred and tax exlcusion strategies so they can make better informed investment decisions.

1031 Exchange Discussion Forum > sing a Qualified Intermediary To Exchange Commercial Income Properties

Also known as an Accommodator, a Qualified Intermediary (QI) is a company that specializes in facilitating the exchange of 1031 properties. The role a qualified intermediary for the like-kind exchange of commercial income properties is established by Treasury Regulation §1.1031(k)-1(g)(4), which states that the entity shall temporarily hold the proceeds from the relinquished property in an escrow account or trust to prevent the seller from taking “constructive receipt” of the funds. If the seller constructively receives the proceeds, the 1031 exchange is disqualified, and the sale of the property is subject to normal taxation.

Performing The Exchange

When you hire a qualified intermediary to facilitate a like-kind exchange of commercial income property, the entity performs three essential functions on your behalf: it acquires your relinquished property and delivers it to the buyer, temporarily holds the proceeds from the sale to prevent you from constructively receiving them, and acquires the exchange property and transfers it to you within the proper timeframe.

The party that performs these services must be unrelated to you and have not had a financial relationship with you (excluding rendering financial services) within two years prior to the close of the escrow exchange. Common examples of parties that are disqualified from serving as a qualified intermediary are one’s present attorney, real estate agent, and public accountant.

Other Services

Companies that serve as qualified intermediaries also perform other services related to the exchange of investment properties, such as helping clients find commercial income properties for 1031 exchanges. Because this service qualifies as a financial service, it does not preclude the companies from serving as qualified intermediaries to the parties they assist with locating properties.

If you need a qualified intermediary to facilitate a 1031 exchange or a property broker to help you find investment properties for like-kind exchanges, Westwood Net Lease Advisors is the company to call. We will advise you on the best acquisitions for your goals and assist you with every step of the investment process, from finding a property to the final transfer of the acquired real estate.

For a free consultation of your investment needs, please call Chris Schellin, president of Westwood Net Lease Advisors at 314-563-2208, cschellin@westwoodnetlease.com, or visit http://www.westwoodnetlease.com/about-us/contact/ to use our contact form.
April 30, 2013 | Unregistered CommenterChris Schellin