qualified intermediary» duties of a qualified intermediary What Is A Qualified Intermediary? The Qualified Intermediary is in the business of facilitating deferred Exchanges by intermediating between the principals. The Qualified Intermediary must Protect the integrity of the form of the Exchange agreement between the Qualified Intermediary and the taxpayer Protect the taxpayer from actual or constructive receipt of money or other property prior to the transfer of replacement property Possess a complete understanding of the current regulations Be able to perform and have a working knowledge of all the ancillary problems and pitfalls of the Exchange transaction. The regulations specifically define a “disqualified person” – one who may not act as a Qualified Intermediary – as: Any person who acts as the taxpayer’s agent, employee, attorney or broker Any brother, sister, spouse, ancestor or lineal descendants Any corporation where 10% of the outstanding stock is owned by or for the taxpayer either directly or indirectly Any beneficiary of a trust where the taxpayer is the grantor