1031 Qualified Intermediary Fees: A Full Breakdown
A Qualified Intermediary (QI) — also called an Accommodator or Exchange Facilitator — is required for every 1031 exchange. They hold the proceeds from your sale and facilitate the transfer to the replacement property. Understanding their fees helps you plan your exchange budget accurately.
Typical QI Fee Structure
- Exchange Administration Fee: $750–$1,500 for a standard exchange. This is the base fee for setting up and managing the exchange paperwork.
- Additional Property Fee: $200–$500 per additional replacement or relinquished property if you're exchanging multiple properties.
- Reverse/Improvement Exchange: $2,500–$10,000+ for more complex exchange structures.
What the QI Fee Covers
- Exchange agreement drafting
- Coordination with escrow and title companies
- Holding funds in a qualified escrow or trust account
- Preparing and sending identification and exchange notices
- Disbursing funds at closing of replacement property
What's NOT Included
QI fees don't cover legal advice, tax consulting, or broker fees. You still need a CPA or tax attorney to advise on exchange strategy and a specialized broker to identify replacement properties.
Choosing the Right QI
Look for QIs that are members of the Federation of Exchange Accommodators (FEA), have errors & omissions insurance, use segregated exchange accounts (not commingled), and have extensive experience with California exchanges.
Samimi CRE Advisors works with trusted QIs across LA County. Contact us to get connected with the right resources for your exchange.