đź”— Primary Resources for Finding a Qualified Intermediary (QI)
| Organization | Why It’s a Good Resource | Direct Link to Directory/Search |
| Federation of Exchange Accommodators (FEA) | This is the leading national trade organization for QIs. Members must adhere to a strict Code of Ethics and meet specific standards. This is your best starting point. | FEA “Find a Professional” Directory |
| American Bar Association (ABA) – Section of Real Property, Trust & Estate Law | While not a QI directory itself, the ABA can help you find a real estate attorney who specializes in 1031 exchanges and can refer you to a reputable QI. | ABA Lawyer Referral Directory (Use the state-specific “Find a Lawyer” links) |
| National Association of Realtors (NAR) / CCIM Institute | Certified Commercial Investment Members (CCIMs) are highly knowledgeable about 1031 exchanges and are a great source for referrals to trusted QIs they have worked with. | CCIM Directory (Find a CCIM) |
| IPT (Institute for Professionals in Taxation) | Members are deeply knowledgeable about the tax implications of 1031 exchanges and are an excellent source for referrals to reputable QI firms. | IPT Member Directory (Look for members with the CMI designation) |
đź’ˇ What to Look For and Questions to Ask
Once you have a shortlist from the directories above, you must vet them thoroughly. The security of your exchange funds is the most critical factor.
- Security & Financial Safety:
- “Do you offer a segregated trust account for my funds?” (Crucial—avoid QIs who commingle all client funds).
- “What type of fidelity bond or professional liability insurance do you carry, and what is the coverage amount?”
- “Can you provide proof of your security measures and financial strength?”
- Experience & Expertise:
- “How many years have you been in business, and how many exchanges do you handle annually?”
- “Do you have experience with my specific type of transaction?”
- Fees & Process:
- “Please provide a full, written fee schedule.”
- “Can you walk me through your QI agreement before I sign?”
A Note of Caution: What to Avoid
- Disqualified Persons: The IRS prohibits using anyone who has acted as your agent (like your real estate agent, lawyer, or accountant) within the past two years as your QI.
- The Cheapest Option: This is not an area to cut corners. A significantly lower fee can be a red flag for poor security or financial instability.
