Common Mistakes & How to Avoid Them

Not Hiring a QI Before Closing

Why it matters:

If you close on your sale without a QI in place, your exchange is permanently disqualified, even if you hire one the next day. You cannot "fix" this mistake after the fact.

How to avoid it:

Contact a Qualified Intermediary as soon as you decide to sell. We'll coordinate with your agent and attorney to ensure exchange language is in your sales contract before you sign.

Touching the Sale Proceeds

Why it matters:

If you receive, control, or even have access to your sale proceeds, the IRS considers it "constructive receipt" and your exchange is disqualified. This is the #1 reason exchanges fail.

How to avoid it:

Your QI must receive the proceeds directly at closing. We coordinate with your closing agent to ensure funds never pass through your hands.

Missing the 45-Day Identification Deadline

Why it matters:

You must identify replacement properties within 45 calendar days of your sale closing—no exceptions. If you miss this deadline by even one day, your exchange fails and all proceeds become taxable.

How to avoid it:

Start looking for replacement properties before you close your sale. We track your deadline from day one and send reminders so you never miss it.