QI Exchange Clause Samples

The QI Exchange clause establishes the terms under which a Qualified Intermediary (QI) facilitates the exchange of assets, typically in the context of a like-kind exchange under tax regulations. This clause outlines the responsibilities of the QI, such as holding proceeds from the sale of relinquished property and ensuring the timely acquisition of replacement property on behalf of the taxpayer. By clearly defining the QI's role and the procedures for asset transfers, the clause ensures compliance with tax deferral requirements and mitigates the risk of disqualification for the parties involved.