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The Role of a Qualified Intermediary

Creating the Exchange of Properties: The IRS stipulates that a reciprocal trade must take place in each exchange transaction. This means that the seller must assign to the QI (1) their interest as seller of the relinquished property and (2) their interest as buyer of the replacement property. Because the QI becomes an actual principal in the transaction, a reciprocal trade is created.

Holding the Exchange Proceeds: If the seller actually receives any of the proceeds from the sales of their relinquished property, those proceeds will be taxable as boot. The QI will hold the proceeds from the sale in a separate exchange account until the funds are used to purchase the Exchanger’s replacement property (maximum of 180 days).

Preparing Legal Documentation: Several legal documents are necessary in order to properly complete an exchange. The QI will prepare an Exchange Agreement, Assignment Agreements and Exchange Closing Instructions for each settlement officer handling the transaction.

AMBAR Financial Group’s Qualified Intermediaries Resource List*:

First American Exchange Company
www.firstexchange.com
Investment Property Exchange Services (IPX §1031)
www.ipx1031.com

* The QI’s listed above are not affiliated with either AMBAR Financial Group nor Pacific West Securities, Inc.

Securities offered through Pacific West Securities, Inc. Member FINRA/SIPC. Advisory services offered Pacific West Financial Consultants, Inc. A Registered Investment Advisor. AMBAR Financial Group is independent of Pacific West Securities, Inc.

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Golden, Colorado

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Los Angeles, California

AMBAR Financial Group does not offer legal or tax advice. AMBAR encourages clients and visitors to seek independent legal and tax advice from competent professionals to discuss their personal financial situations. Registered Representatives may only transact business in states where they are registered, or exempt from registration. Currently we have Representatives registered in: AL, AZ, CA, FL, MN, MO, PA, TX. If your resident state is not listed, please contact us at 408-379-6510. Under normal circumstances, securities licensing procedures for additional states may take 24-72 hours. We will not effect or attempt to effect securities transactions, or provide personalized investment advice to, or communicate directly with residents in a state in which a Representative is not registered.

Property photos shown here are being provided for educational purposes only, to illustrate the different property types available in the real estate market. These photos are not intended to represent any particular type of TIC offering nor are they intended to represent any current or future TIC offerings.