Full Definition
A qualified intermediary (QI, also called accommodator or facilitator) is a neutral third party required by the IRS to facilitate a 1031 exchange. The QI holds sale proceeds in escrow (preventing 'constructive receipt' by the investor), prepares exchange documents, and releases funds for replacement property purchase.
Related Terms
1031 Exchange (Like-Kind Exchange)
IRS-approved strategy allowing investors to defer capital gains taxes by reinvesting proceeds from sold investment property into like-kind property.
Constructive Receipt
The IRS doctrine that treats money as received when it becomes available to you — critical concept in 1031 exchanges.