The short answer
Not as a plan. Reg. Section 1.1031(k)-1(g)(4)(iii) defines a qualified intermediary as one person who, under a written exchange agreement with you, acquires and transfers the relinquished property and then acquires and transfers the replacement property. Splitting those steps between two intermediaries means neither one fits that definition on its own, and the money has to travel between them without passing through you. What you can do is use different title companies, escrow agents or closing attorneys on each side, all working with the same intermediary.
At a glance
| Definition | One person under one written exchange agreement does all four steps |
|---|---|
| Four steps | Acquire and transfer the relinquished property; acquire and transfer the replacement |
| Direct deeding | Assignment of contracts with written notice counts as acquiring and transferring |
| Closers | Each closing can use its own title company, escrow agent or attorney |
| Money path | Funds must never be available to you before the exchange ends |
| Guidance on two QIs | None in the regulations; treat a split as a risk, not an option |
| State facilitator laws | Apply by property location, so one QI may need to meet two states' rules |
The safe harbor is written around a single intermediary who handles both legs
The definition in paragraph (g)(4)(iii) has two parts. The intermediary is not you or a disqualified person, and it 'enters into a written agreement with the taxpayer' and, as that agreement requires, 'acquires the relinquished property from the taxpayer, transfers the relinquished property, acquires the replacement property, and transfers the replacement property to the taxpayer.'
An intermediary that only sells your old property, or only buys your new one, does not perform all four steps. The regulations say nothing about two intermediaries sharing an exchange, so a split structure is outside the safe harbor's language and rests on general tax principles. That is why intermediaries do not offer it as a service.
Two closing agents in two states is normal and needs no second intermediary
Under paragraph (g)(4)(iv), the intermediary is treated as acquiring and transferring property when it is assigned your rights in the sale and purchase contracts and the deed goes directly from seller to buyer. Paragraph (g)(4)(v) requires that all parties to each contract be notified in writing of the assignment on or before the transfer.
So the intermediary never needs to be at either closing table. A title company in one state closes your sale and wires the net proceeds to the intermediary; an escrow agent or closing attorney in another state receives the intermediary's wire for the purchase. What the intermediary does on closing day is covered in whether a 1031 delays closing.
Federal law also does not care where either property sits within the United States; see exchanging into another state.
State facilitator laws attach to the property, not to a second intermediary
Some states regulate exchange facilitators. Washington's chapter 19.310 RCW reaches facilitators handling relinquished property located in the state, and requires either a fidelity bond of not less than one million dollars or a qualified escrow account or trust. California's definition in Financial Code section 51000 likewise turns on relinquished property located in California, an office in the state, or advertising to the public in the state.
If your sale is in one of those states and your purchase is elsewhere, the answer is one intermediary that complies with that state's rules, not a local intermediary for each leg. Whether your QI needs to be in the same state covers this in more detail.
A hypothetical: selling in Washington, buying in Arizona
Hypothetical facts: you sell a Spokane rental for $800,000 through a local title company and plan to buy a $900,000 property in Phoenix. You sign one exchange agreement with an intermediary that meets Washington's bonding or escrow rule. It is assigned the sale contract, the Spokane title company wires the net proceeds to it, and your identification notice goes to it by day 45.
When the Phoenix purchase is ready, the same intermediary is assigned the purchase contract, notifies the seller, and wires your funds to the Arizona escrow agent, with the deed going straight to you. Two closers, two states, one exchange. Run your own numbers with your CPA.
If you are already working with two intermediaries, fix it before the first closing
The safe fix is to choose one intermediary and cancel the other's agreement before the sale closes, so the proceeds go to one exchange account from the start. Choosing one is covered in how to choose a safe qualified intermediary.
If the sale has already closed and you want a different intermediary for the purchase, that is a change of intermediary, not a split, and it carries its own risks for the money in transit. Do not take a check or a wire into your own account in between, because Reg. Section 1.1031(k)-1(f) treats money you actually or constructively receive as ending the exchange.
When the replacement is an interest in a Delaware Statutory Trust, the same intermediary simply wires the funds to the offering's escrow.
Related questions
Can my buyer's intermediary also act for me?
Only under a separate exchange agreement with you. Each exchanger needs its own agreement and account, even when both use the same company.
Does the purchase escrow agent need to be a qualified intermediary?
No. The closing agent on the purchase receives the intermediary's wire and records the deed; it does not hold your exchange funds under the agreement.
Can I use one intermediary for the sale and a titleholder for a reverse leg?
Rev. Proc. 2000-37 lets an exchange accommodation titleholder that meets the intermediary safe harbor also serve as intermediary. Using one firm for both roles keeps the paperwork in one place.
What if my sale and purchase are in different tax years?
That does not require a second intermediary. One agreement covers the full exchange period, which can cross a year end.
Can I split the funds between two intermediaries for safety?
The regulations give no path for that, and every transfer between accounts is a point where money can be lost or treated as received. Look for an intermediary with qualified escrow or bonding instead.
Sources
Checked against these publications on September 30, 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.