What the QI needs to open my 1031 exchange, and when should I start?

The intake list: contract, closing contact, vesting, TIN, payoff and closing date

Every intermediary's intake form asks for the same core facts, because the exchange documents are built from them. Asset Preservation's online form asks for the exchanger's name, phone, email and address, the escrow officer or closing attorney's contact details, the address of the property being sold, the mortgage debt, the estimated closing date and the sales price.

IPX1031 adds the fully executed purchase and sale agreement, a preliminary title report if one exists, and email addresses and cell numbers for every person listed as seller on the contract. 1031 Exchange Corporation's FAQ asks how the property is vested, what it cost, how it has been used, and its value, equity and mortgage.

• Signed purchase and sale agreement, with any amendments and the buyer's full legal name
• Closing agent, escrow officer or closing attorney: name, phone, email and escrow or file number
• Your name and vesting exactly as the deed reads, plus the taxpayer identification number of the individual or entity on title
• Sale price, lender payoff figures and any seller financing you have agreed to carry
• Whether you intend to take any cash at closing, so the documents can reserve that amount
• Expected closing date, since the 45-day and 180-day clocks start the day the deed transfers

Why the QI must be in place before the deed records, not merely before you list

The regulation makes the intermediary's timing a hard rule: it must enter a written exchange agreement with you and be treated as acquiring the relinquished property, which happens when your rights under the sale contract are assigned to it and all parties are notified in writing on or before the date of transfer (26 CFR 1.1031(k)-1(g)(4)(iii) and (v)). Paperwork signed after closing does not work.

Asset Preservation tells sellers to contact the intermediary at any time and definitely before closing on the relinquished property. Legal 1031 says to call once you decide to sell and always before you close, adding that it can prepare documents right up until the day of the closing.

The practical floor, then, is a few business days before closing so the closing agent can add the assignment and the wiring change to the file. If you are closing this week or have already closed, read Is it too late to start a 1031 exchange?.

What the intermediary sends to escrow and the buyer once it opens the file

Asset Preservation lists four documents it forwards for signature as soon as it has the intake information: an exchange agreement, an assignment agreement, a notice of assignment that the buyer also signs, and a qualified exchange account agreement. The closing agent receives instructions to prepare the deed directly from you to the buyer and to show the intermediary on the seller's settlement statement as qualified intermediary for you.

The exchange account agreement matters because the regulation shields you from constructive receipt only if the escrow holder is not a disqualified person and the agreement expressly limits your rights to receive, pledge, borrow or otherwise obtain the benefits of the cash until the exchange period ends (26 CFR 1.1031(k)-1(g)(3) and (g)(6)). How the money then moves at the table is covered in Does a 1031 exchange delay my closing?.

Vesting and the taxpayer identification number are the first things to fix

Legal 1031's early-preparation guidance is blunt: the tax identification number should be the same on both sides of the exchange, with disregarded entities such as a single-member LLC or a revocable trust as the usual exceptions, and the ownership structure should be fully vetted with your tax advisor before the exchange process starts. A deed held by a partnership whose partners want separate replacements cannot be untangled the week of closing.

Send the intermediary a copy of the current deed and, if an entity holds title, its formation documents and EIN. If you plan to sell in your own name and buy in a trust or LLC, read Can I sell in my own name and buy in my revocable trust? and Can I 1031 from my personal name into an LLC? before the file opens.

Decide the replacement plan before day one, because day 45 arrives fast

The intermediary opens the file; it does not find your replacement. By the day you close you should know whether you are buying a specific property, a DST interest, a direct-title security or a mix, because identification is due in writing within 45 days and the three-property and 200 percent rules limit what you can list.

Legal 1031 notes that early planning opens options such as tenancies in common, Delaware Statutory Trusts and triple-net properties that need no management. We keep a current inventory of DST and direct-title offerings from vetted national sponsors, so a seller who talks to us before listing can name backup properties on day one; Using DSTs as backup properties explains why that matters.

Also settle two numbers with your CPA before you list: your adjusted basis and the gain being deferred. Legal 1031 recommends confirming there is enough taxable gain to justify structuring an exchange, and What is the minimum gain that makes a 1031 worth the fees? walks through that math.

A working timeline from listing to the closing table

Nothing on this list requires the intermediary to slow the sale. Confirm each step with your CPA or attorney, because the exchange agreement binds you to restrictions on the money that cannot be undone once it is signed.

• Before listing: confirm vesting and TIN with your CPA or attorney, choose a safe intermediary, shortlist replacement inventory
• At contract: add an exchange cooperation clause, then send the signed contract and closing-agent contact to the QI
• One to two weeks out: sign the exchange agreement and assignment; the QI sends the notice and closing instructions to escrow
• Closing day: the deed goes directly to the buyer and the net proceeds wire to the QI's qualified escrow account, never to you
• Day 1 to 45: deliver written identification to the QI; day 180 is the last day to close on the replacement