Advisor Referral Network Map: Who Needs to Be on the Deal Team
13 min read · For Advisors · Last updated
Key Takeaways
A 1031 exchange requires a coordinated team of specialists: the advisor (quarterback), qualified intermediary (exchange mechanics), CPA (tax planning), real estate attorney (entity and legal structure), broker (property search), lender (financing), and title/escrow company (closing logistics). The advisor or CPA typically serves as quarterback. Engagement timing varies by phase: pre-sale, Days 1-45, Days 46-180, and post-close. Establish relationships and document requests before the deal starts.
Deal Team Role Map
A 1031 exchange requires seven specialists. This guide maps who joins the deal, when they join, what they own, what breaks if they are missing, and where handoffs fail.
Role Map: Who Does What and When
| Role | Enters | Exits | Owns | What Breaks If Missing |
|---|---|---|---|---|
| Financial Advisor | Pre-sale (Day -30) | Post-close (ongoing) | Strategy, team coordination, client communication, portfolio fit | No one asks whether the exchange makes financial sense; client defaults into a 1031 without evaluating alternatives |
| Qualified Intermediary (QI) | Day -20 (must be engaged before closing) | Day 180+ (final accounting) | Exchange agreement, fund custody, 45/180-day tracking, proceeds wiring | Proceeds go to client (constructive receipt); exchange fails before it starts |
| CPA | Pre-sale (tax projection) | Post-close (Form 8824 filing) | Tax feasibility, depreciation recapture analysis, entity structure advice, Form 8824 | Basis miscalculated; recapture unplanned; Form 8824 not filed |
| Real Estate Attorney | Day 1-45 (contract review) | Closing | Entity structure, contract review, state-law compliance, title issues | Entity mismatch (same-taxpayer failure); contract terms conflict with exchange |
| Real Estate Agent/Broker | Pre-sale (listing) | Day 180 (closing on replacement) | Property listing, market research, identification candidates, purchase negotiation | No viable candidates by Day 45; negotiation delays past Day 180 |
| Lender | Pre-sale (pre-approval) | Closing | Replacement property financing, loan commitment, funding within 180 days | Financing not approved in time; exchange fails at Day 180 |
| Title Company / Escrow | At closing (sale and purchase) | Closing | Closing logistics, QI proceeds routing, title insurance | Proceeds wired to client instead of QI; title defect delays closing |
Phase-by-Phase Engagement
Phase 1: Pre-Sale (Months 1-3 Before Closing)
Active: Advisor, CPA, Real Estate Agent, Lender (optional)
| Activity | Owner | Deliverable |
|---|---|---|
| Confirm 1031 feasibility | Advisor + CPA | Tax projection (exchange vs. taxable sale) |
| List property | Agent | Listing agreement, marketing plan |
| Pre-approve replacement financing | Lender | Pre-approval letter |
| Engage QI | Advisor + Client | Executed exchange agreement |
Milestone: Property listed. Client committed to exchange strategy. QI engaged.
Phase 2: Days 1-45 (Identification Period)
Active: QI, Advisor, CPA, Real Estate Agent
| Activity | Owner | Deliverable |
|---|---|---|
| Receive and confirm proceeds | QI | Written confirmation of receipt |
| Source replacement candidates | Agent | 5-10 property profiles |
| Screen candidates for qualification | Advisor + CPA | Vetted shortlist |
| Draft and submit identification letter | Advisor + Client | Signed identification, QI confirmation |
Milestone: Identification letter delivered to QI by Day 45.
Critical failure point: If the client has not identified replacement property by Day 45, the exchange is over. No exceptions.
Phase 3: Days 46-180 (Acquisition Period)
Active: QI, Advisor, CPA, Real Estate Agent, Attorney, Lender, Title Company
| Activity | Owner | Deliverable |
|---|---|---|
| Negotiate purchase contract | Agent + Client | Executed purchase agreement |
| Review contract for 1031 compliance | Attorney | Legal review memo |
| Underwrite and approve loan | Lender | Loan commitment letter |
| Monitor timeline and coordinate closing | QI + Advisor | Closing scheduled before Day 180 |
| Close replacement property | Title Company | Recorded deed, title insurance |
Milestone: Replacement property closes by Day 180.
Critical failure point: Lender delays or title issues push closing past Day 180. Build a 10-day buffer.
Phase 4: Post-Close (Day 181+)
Active: CPA, Title Company (final docs), QI (final accounting)
| Activity | Owner | Deliverable |
|---|---|---|
| Issue final accounting and Form 1099-S | QI | Accounting statement |
| File Form 8824 | CPA | Filed tax form |
| Review outcome and portfolio impact | Advisor | Updated financial plan |
Handoff Failure Points
| Handoff | From | To | Failure Mode | Prevention |
|---|---|---|---|---|
| Sale proceeds to QI | Title Company | QI | Proceeds wired to client or wrong account | Confirm QI wiring instructions with title company in writing before closing |
| Identification to QI | Client/Advisor | QI | Late, vague, or delivered to wrong party | Submit by Day 40; confirm QI receipt in writing |
| QI to replacement closing | QI | Title Company | QI wiring instructions missing or incorrect at closing | Provide QI instructions to replacement title company 5+ business days before closing |
| Closing docs to CPA | Advisor | CPA | CPA receives incomplete package; Form 8824 errors | Use a document checklist; send complete packet within 30 days of closing |
Quarterback Assignment
In every exchange, one person must be the designated coordinator. Assign this role in writing before the deal starts.
| Condition | Quarterback |
|---|---|
| Client has strong advisor relationship; exchange is straightforward | Advisor |
| Exchange has complex tax implications; CPA is highly engaged | CPA |
| Both are available and experienced | Advisor (financial strategy) + CPA (tax strategy), with clear division of responsibilities |
| Neither takes ownership | Exchange is at risk. Assign a quarterback immediately. |
The worst scenario: no one takes ownership. Decisions stall, the timeline slips, and the client is left managing multiple parties alone.
Building Your Referral Network
Build relationships before a deal arrives. For each role:
QI Selection
- Check the National Association of Qualified Intermediaries directory (naqii.org)
- Interview at least two; ask about exchange volume, E&O insurance, fee schedule, communication practices, and references
- Confirm they coordinate with advisors and CPAs
- Maintain the relationship between deals
CPA with 1031 Experience
- Ask: How many Form 8824s have you prepared? Have you handled reverse or multi-owner exchanges?
- Confirm responsiveness and turnaround time on tax projections
Real Estate Attorney
- Ask: Do you have 1031 experience? What entity structures have you dealt with? How quickly can you review contracts?
- Not every exchange needs an attorney, but knowing one is essential for complex situations
Documents to Request from Each Party
| Party | Documents |
|---|---|
| QI | Engagement letter, fee schedule, E&O insurance certificate, exchange process overview, identification form |
| CPA | Tax projection (two scenarios), entity structure analysis, like-kind confirmation |
| Attorney | Contract review, entity structuring memo (if applicable), closing summary |
| Agent | Market analysis, candidate property list, purchase contract, closing statement |
| Lender | Pre-approval letter, loan commitment, proof of funds at closing |
| Title Company | Settlement statements (sale and purchase), proof proceeds sent to QI, title insurance |
The Bottom Line
A 1031 exchange requires a team. Your job is not to be the expert in all areas. Your job is to recognize when expertise is needed, build relationships with specialists before you need them, and coordinate the team so the client has a seamless experience. The advisor who can orchestrate a coordinated team will differentiate themselves and create client relationships that last.
The Bottom Line
A 1031 exchange is not a solo sport. The advisor who can orchestrate a team of specialists will retain clients, prevent costly mistakes, and create a seamless experience that justifies professional fees. Build your network before you need it.
Frequently Asked Questions
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