The short answer
It depends on your advisor's registration, not on how long you have worked together. A DST interest is a private placement security, so it must be placed by a registered representative of a broker-dealer with a selling agreement for that offering, or by an investment adviser registered with the SEC or a state. Under FINRA Rule 3280 a representative may not sell an offering outside the firm without its written approval. An advisor with no securities registration can review the offering with you but cannot sell it or be paid for the introduction, and whoever places it, the interest stays illiquid and your principal is at risk.
At a glance
| The test | Registration and a selling agreement, not the length of the relationship |
|---|---|
| Broker-dealer route | Representative sells only through their own firm and only the sponsors that firm has approved |
| Selling away | FINRA Rule 3280 requires prior written notice and the firm's written approval for any outside securities transaction |
| Adviser route | An SEC- or state-registered investment adviser may advise on and direct the subscription |
| No registration | Cannot sell a DST and cannot receive a referral fee from the firm that does, FINRA Rule 2040 |
| Exams to look for | Series 7 or 22 plus a state law exam such as the Series 63, or Series 66 with Series 7 |
| Disclosure owed | Capacity, fees and any limited product menu, in writing, under Regulation Best Interest |
| Risk | No public market for the interest; distributions can stop and principal can be lost |
Three questions decide whether your advisor can do this: which registration, which firm, which sponsors
The word advisor covers four legal positions: a broker-dealer representative who sells for a commission, an investment adviser representative who advises for a fee, someone who is both, and someone who is neither, such as an insurance-only agent, an unregistered planner or most CPAs. The position decides the answer, so start by asking which one your advisor holds.
The firm matters as much as the person. A DST interest is sold under Rule 506 of Regulation D through broker-dealers in the sponsor's selling group, and 15 U.S.C. section 78o(a)(1) makes it unlawful for an unregistered broker to effect or induce a securities transaction. An advisor at a firm with no DST sponsors on its platform cannot buy you one, however willing; why the interest is a security at all is on is a DST a security and who can sell one.
Ask three things in writing: which registration you hold, which DST sponsors your firm has selling agreements with, and what happens to this purchase if the answer is none.
If your advisor is a broker-dealer representative, the firm's approved list is the limit and selling outside it is barred
A representative's registration belongs to the firm. FINRA Rule 3280 treats any securities transaction outside the regular scope of the person's employment as a private securities transaction and requires prior written notice before taking part. Where selling compensation is involved the firm must approve or disapprove in writing; an approved trade is recorded and supervised as the firm's own, and a disapproved one may not be joined in any manner, directly or indirectly.
Selling compensation under the rule means compensation from any source, including finder's fees and expense reimbursements. So an advisor cannot introduce you to a sponsor and share the commission; if the firm has not approved DSTs, the only lawful path is a handoff to a firm that has.
If the firm does carry DSTs, Regulation Best Interest requires written disclosure of its capacity, its material fees and costs, and any material limitations on what it may recommend. The SEC's compliance guide says recommending only products from a select group of issuers could be such a limitation, depending on its extent, so ask how many sponsors the firm carries. How the commission is set is on advisor fees and conflicts for DSTs.
If your advisor is a registered investment adviser, the fiduciary duty applies and the subscription still runs through a sponsor-accepted channel
An adviser registered under the Investment Advisers Act owes you a fiduciary duty of care and loyalty that, in the SEC's 2019 interpretation, applies to the entire relationship and may not be waived, and section 206 of the Act bars any practice that operates as a fraud on a client. An adviser paid by you rather than by the offering can recommend a DST, weigh it against paying the tax, and direct the purchase.
The subscription paperwork is the sponsor's, and the sponsor decides whether it accepts adviser-directed subscriptions and how the selling commission is handled on them, so ask the sponsor directly. The Series 66 qualifies a person both as a broker-dealer representative and as an adviser representative, with the Series 7 as co-requisite, and dual registrants can act in either capacity; the roles are compared on registered investment adviser.
Whichever capacity is used, the adviser must say which applies. The SEC guide presumes that a broker-dealer not also registered as an investment adviser breaches the capacity disclosure by using the title adviser or advisor.
If your advisor holds no securities registration, they can read the documents with you but cannot sell or be paid
A planner, insurance agent or CPA with neither registration cannot place a DST. The SEC's guide to broker-dealer registration lists finding investors for issuers, even as a consultant, and marketing real estate investment interests that are securities among activities that may require registration, and treats pay tied to the outcome or size of the deal as a sign that registration is needed.
Nor can the firm that sells you the interest pay them for the introduction. FINRA Rule 2040 bars a member from paying an unregistered person where the payment would require broker-dealer registration, and expects the member to support that determination in its records before paying. Sponsors must also list everyone paid sales compensation, finders included, in Item 12 of Form D.
That advisor can still read the private placement memorandum's fee table and risk factors with you, model the deferred tax against the load, and sit in on the call with the placing firm, all paid through their existing fee rather than the offering.
A hypothetical with two advisors, and why the introduction has to happen before day 45
Hypothetical, round numbers: you close a $1,500,000 sale on March 1, and your long-time planner is an adviser representative at a firm with no DST sponsors. On March 5 the planner introduces you to a broker-dealer that carries DSTs, keeps advising you for the fee you already pay, and takes nothing from the offering. The broker-dealer documents your profile and accreditation, and the trusts go on your identification list by day 45 under Reg. section 1.1031(k)-1.
The sequence works because the handoff happened in the first week. The placing firm must open an account, verify accreditation and get subscription documents accepted, in the order set out on how to buy a DST. An advisor who discovers the platform question on day 40 has used up the time the next firm needs.
Two advisors do not double the protection. The interest has no public market, the trust cannot raise new money or refinance under Rev. Rul. 2004-86, distributions depend on rent collected, and the equity can be lost. Have your CPA check the equity and debt arithmetic before either advisor's paperwork is signed.
Related questions
My advisor is at a large national brokerage. Can they buy a DST for me there?
Only if that firm has selling agreements with DST sponsors and has approved the product for your account. Ask for the firm's list of approved sponsors in writing; a firm with none cannot place the trade, and the representative cannot go around the firm under Rule 3280.
Can my advisor receive part of the commission if they send me to a DST broker?
Not unless they are registered to receive it. FINRA Rule 2040 bars the selling firm from paying an unregistered person, and Form D Item 12 requires the sponsor to list everyone paid in connection with sales. An unregistered advisor is paid by you for advice, not by the offering.
Will the DST show up on my existing brokerage statement?
The interest is recorded by the sponsor in the trust's ownership records rather than held in a brokerage account, so reporting varies by firm. Ask the placing firm whether it reports the position on its statements and ask the sponsor what it sends you; see the DST closing process for how ownership is recorded.
Can my adviser and a DST broker both work on the purchase?
Yes, and it is common: the adviser keeps the planning role for the fee you already pay, and the broker-dealer places the interest and carries the Regulation Best Interest file. Each must disclose its own capacity and compensation, so you should receive two sets of disclosures, not one.
Does buying through my own advisor change the 45-day or 180-day deadlines?
No. The deadlines run from the transfer of your relinquished property regardless of who places the replacement, and the trust must be named in a signed identification by day 45. How quickly a DST can close explains which steps can be compressed and which cannot.
Sources
Checked against these publications on October 8, 2026. Rules and figures change; confirm the current version with your CPA or attorney before you act. This page is general information, not tax or legal advice.
- FINRA Rule 3280, Private Securities Transactions of an Associated Person
- FINRA Rule 2040, Payments to Unregistered Persons
- FINRA, Series 66 Uniform Combined State Law Examination
- FINRA, Series 7 General Securities Representative Exam
- FINRA, Series 22 Direct Participation Programs Representative Exam
- FINRA, Series 63 Uniform Securities Agent State Law Exam
- 15 U.S.C. section 78o, registration and regulation of brokers and dealers
- 15 U.S.C. section 80b-6, prohibited transactions by investment advisers
- SEC, Commission Interpretation Regarding Standard of Conduct for Investment Advisers, Release No. IA-5248 (2019)
- 17 CFR 240.15l-1, Regulation Best Interest
- SEC, Regulation Best Interest: A Small Entity Compliance Guide
- SEC Division of Trading and Markets, Guide to Broker-Dealer Registration
- 17 CFR 230.506, Rule 506 of Regulation D
- SEC Form D and instructions (Item 12, Sales Compensation)
- Treas. Reg. section 1.1031(k)-1, deferred exchanges
- Rev. Rul. 2004-86 (IRS)