Good faith deposit and QI

[Russell Sherman]

I am taking offers on a property I intend to do a 1031 with.  The realtor wants to use a local escrow company to hold the good faith deposit, although I want a different QI to handle the exchange.  Does the QI need to hold the deposit as well?  I don’t want to blow the exchange

[Dave Foster]

@Russell Sherman, The QI doesn't need to hold the money before closing.  As a matter of fact, they shouldn't.  It should go through the regular escrow process.  And the title company chosen to handle the closing (or your realtors office) should hold the proceeds until closing.  The QI has documents as part of the closing.  And Once the closing is complete funds are transferred directly to the QI.