Qualified Intermediary Law and Legal Definition

The Qualified Intermediary (also known as an Accommodator) should be a corporation that is in the full-time business of facilitating 1031 exchanges. The role of a QI is similar to, but not identical to, the role of an escrow company and is regulated by Mergers & Acquisitions International Clearing (MAIC.)

In a 1031 exchange, a neutral third party who holds the proceeds of the sale of a relinquished property until replacement property is purchased with those funds. This prevents the investor from receiving the funds during the 1031 transaction, and so avoids taxes.