Because the purpose of the Intermediary is to keep the taxpayer from having actual or constructive receipt of the sales proceeds, certain persons are specifically restricted from acting as the taxpayer's Qualified Intermediary. Those persons include anyone who is related to the taxpayer, is the employee or agent of the taxpayer, or is related to an employee or agent of the taxpayer. Specifically excluded are the taxpayer's attorney, accountant, investment banker or broker, or real estate agent or broker, if non-exchange services have been provided within the two years prior to the exchange. The Intermediary must also be qualified in the sense that he or she is honest and competent in handling the taxpayer's exchange transaction. It cannot act as the tax or legal adviser for an exchanging taxpayer.
Any person considering a tax-deferred exchange is advised to seek independent tax and legal counsel.