The short answer
Usually not the deed. Under Reg. section 1.1031(k)-1(g)(4)(iv) and (v), the intermediary is treated as acquiring and transferring both properties once your contracts are assigned to it and every party is notified in writing, so you deed the old property directly to the buyer and the replacement seller deeds directly to you. The intermediary signs the exchange agreement and the assignments. No regulation says who signs the settlement statement; the closing agent decides that, and it will normally want the intermediary's written approval of the money going to or coming from the exchange account.
At a glance
| Relinquished deed | Signed by you, running directly to the buyer |
|---|---|
| Replacement deed | Signed by the seller, running directly to you |
| Intermediary signs | Exchange agreement and the assignment of each contract |
| Notice of assignment | Written, to all parties, on or before each transfer |
| Settlement statement | Signature practice set by the closing agent, not the regulations |
| Taking title instead | Allowed, but can add deeds and transfer tax in some states |
Direct deeding lets the intermediary stay off the chain of title
The regulation, which applies to transfers on or after June 10, 1991, does not require the intermediary to hold title. Paragraph (g)(4)(iv)(B) treats the intermediary as acquiring and transferring the relinquished property if it 'enters into an agreement with a person other than the taxpayer' and, under that agreement, 'the relinquished property is transferred to that person'. Paragraph (g)(4)(iv)(C) does the same for the replacement.
Paragraph (g)(4)(v) then lets an assignment stand in for that agreement. The intermediary 'is treated as entering into an agreement if the rights of a party to the agreement are assigned to the intermediary and all parties to that agreement are notified in writing of the assignment on or before the date of the relevant transfer'.
The result is that the deed never mentions the intermediary. Title runs from you to your buyer and from your seller to you, exactly as it would in a sale and a purchase.
What the intermediary does sign
The intermediary's signature goes on the documents that create its role and move the money. The intake for those documents is described in what the QI needs to open my exchange.
- The exchange agreement with you, which must limit your rights to the money as paragraph (g)(6) requires.
- The assignment of your sale contract, and later the assignment of each replacement purchase contract.
- The notices of assignment to the buyer and the replacement seller, often signed by you or the intermediary and delivered by the closing agent.
- Instructions to the closing agent on where to wire the net proceeds, and the release of exchange funds for the replacement purchase.
The settlement statement is the closing agent's document
Nothing in section 1031 or the regulations specifies who signs a settlement statement. Paragraph (g)(7)(ii) refers to items that 'appear under local standards in the typical closing statements', which is a nod to local practice rather than a form.
In practice you sign as seller or buyer, and the statement shows the intermediary as the payee of the net proceeds on the sale and as a source of funds on the purchase. Expect the closing agent to want the intermediary's sign-off on those lines before it releases or accepts a wire. How to read each line is in the settlement statement for a 1031 exchange, and the Form 1099-S questions that follow from it are in 1099-S and the 1031 exchange.
Worked example: the regulation's own closing, document by document
Example 4 in paragraph (g)(8) of the regulation walks through a full exchange. B agrees to sell property X to D for $100,000. D 'is unwilling to participate in a like-kind exchange', so B signs an exchange agreement with intermediary C and assigns C all of B's rights in the contract with D.
On closing day B notifies D in writing of the assignment, and 'B executes and delivers to D a deed conveying real property X to D'. D pays $10,000 to B and $90,000 to C. Later B signs a contract to buy property L from E for $90,000, assigns it to C and notifies E in writing. C pays E $90,000, and 'E executes and delivers to B a deed conveying real property L to B'.
The regulation concludes that C is treated as entering into both agreements and as acquiring and transferring both properties. C signed neither deed. The $10,000 paid directly to B is boot, which paragraph (g)(4)(vii) permits without disturbing the safe harbor for the rest.
When the intermediary does take title, and what it can cost
Paragraph (g)(4)(iv)(A) still allows the old method: an intermediary is treated as acquiring and transferring property 'if the intermediary acquires and transfers legal title'. It remains available, and in reverse and improvement exchanges an accommodation titleholder must hold title by design.
Extra deeds can mean extra transfer tax. Washington's WAC 458-61A-213 taxes the transfer into a facilitator but exempts its transfer out in a completed exchange when tax was paid on the first transfer and the exchanger's money funded it; other states have their own rules. Direct deeding avoids the question, and the exchange cooperation clause in your contracts is what makes the assignments routine.
For a Delaware Statutory Trust replacement there is no deed at all: you sign the sponsor's subscription documents, the intermediary is assigned into the purchase and funds it. Ask your CPA or attorney to confirm the vesting on every document before you sign.
Related questions
Does the deed need to mention the exchange?
No. Nothing in the regulations requires exchange language on the deed; the assignment and notice create the intermediary's role.
Does the buyer have to sign anything for the intermediary?
The buyer must be notified in writing of the assignment; the regulation does not require the buyer to consent or countersign.
Who signs the replacement purchase contract?
You do, as buyer. You then assign your rights to the intermediary and notify the seller in writing before closing.
Is the intermediary shown as the seller on the closing statement?
Practice varies; commonly you appear as seller and the intermediary as the recipient of the net proceeds. What matters is that the proceeds are paid to the intermediary, not to you.
What if the closing agent asks the intermediary to sign the deed?
Ask why. Direct deeding is the norm under the regulations, and an extra conveyance can bring transfer tax and title costs.
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.