The short answer
A facilitator or accommodator is the independent party that holds a seller's proceeds and steps into the contracts during a deferred exchange; the federal regulations call it a qualified intermediary, and the other two names are trade and state-law terms for the same role. The intermediary safe harbor in Reg. section 1.1031(k)-1(g)(4) works only if it is not you or a disqualified person and enters into a written exchange agreement that limits your access to the money. Federal law does not license intermediaries, but several states regulate exchange facilitators directly.
At a glance
| Federal term | Qualified intermediary, defined in the deferred exchange regulations |
|---|---|
| Who cannot serve | You, or anyone who was your agent, attorney, accountant or broker within two years, or a related party |
| Federal licensing | None; the regulations set eligibility, not capital or bonding |
| State regulation | California and Washington each require a $1,000,000 fidelity bond or an alternative such as a qualified escrow account; Washington also requires $250,000 of errors and omissions cover |
The names come from different sources but describe one function.
'Qualified intermediary' is the regulatory term in Reg. section 1.1031(k)-1(g)(4)(iii): a person who is not the taxpayer or a disqualified person and who, under a written exchange agreement, acquires and transfers the relinquished and replacement property. 'Exchange facilitator' is used in Reg. section 1.468B-6 for any qualified intermediary, escrow holder, trustee or other party that holds exchange funds, and that regulation decides who is taxed on the interest the funds earn. 'Accommodator' is industry usage; in a reverse exchange the party holding title is the exchange accommodation titleholder under Rev. Proc. 2000-37.
Disqualified persons are defined in Reg. section 1.1031(k)-1(k). Anyone who acted as your employee, attorney, accountant, investment banker or broker, or real estate agent or broker within the two years before the first transfer is treated as your agent and cannot serve, except for exchange services and routine title, escrow or banking services.
A hypothetical: two facilitators, one sale, different protections.
Hypothetical figures: you sell a California rental and expect $600,000 in net proceeds. One facilitator offers to pool your money with other clients' funds; another offers a separate account that needs your signature and its own for withdrawals.
Both can satisfy the federal rules if the agreement contains the (g)(6) limits on your access. California law adds a floor: under Financial Code section 51003, a facilitator in business for California property must keep a fidelity bond of at least $1,000,000, deposit $1,000,000 of cash, securities or letters of credit, or hold all exchange funds in a qualified escrow account or trust that requires both its and the client's written authorization for withdrawals. Ask which option applies to your money. Run your own numbers with your CPA.
It bites when a facilitator fails, because the federal safe harbor protects the tax result, not the money.
The regulations limit your access to the funds so you are not in constructive receipt; they do not require the facilitator to be bonded or audited. That gap is what state laws address. Washington's chapter 19.310 RCW requires a fidelity bond of at least $1,000,000 or deposit of all exchange funds in a qualified escrow account or trust, errors and omissions insurance of at least $250,000 or a deposit, a prudent investor standard, and deposit of client funds in a separately identified account with earnings credited to the client.
What happens if a facilitator collapses, and how to check one, is covered in what if the qualified intermediary goes bankrupt and how to choose a qualified intermediary.
Related questions
Is an accommodator different from a qualified intermediary?
In a forward exchange, no; the words describe the same party. In a reverse exchange the party that parks title is the exchange accommodation titleholder, often an affiliate of the intermediary, described in the reverse 1031 exchange guide.
Does California's law apply if I live elsewhere?
California Financial Code section 51000 defines an exchange facilitator by reference to relinquished property located in California, an office in the state, or soliciting clients there. The location of the property and the facilitator's business matter more than where you live.
Can the title company that closes my sale also be my facilitator?
It can, since routine escrow and title services do not make it your agent under Reg. section 1.1031(k)-1(k)(2)(ii). The closing role itself is described under settlement agent.
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.
- 26 CFR 1.1031(k)-1, Treatment of deferred exchanges (Cornell LII)
- 26 CFR 1.468B-6, Escrow accounts, trusts, and other funds used during deferred exchanges (Cornell LII)
- California Financial Code section 51000, Exchange facilitator definitions
- California Financial Code section 51003, Bond or deposit requirement
- Washington, chapter 19.310 RCW, Exchange facilitators
- IRS, Rev. Proc. 2000-37