QUALIFIED INTERMEDIARY SERVICES

A qualified intermediary has to be in place and documented before the relinquished property closes, not after, and in a fast-moving Las Vegas transaction that means the exchange agreement, assignment language, and escrow instructions need to be settled while the sale is still under contract. Waiting until the week of closing to loop in a QI is the single most common way an otherwise clean exchange gets put at risk in this market.

The fix is straightforward but time-sensitive: engage the qualified intermediary the moment the relinquished property goes under contract, not once a buyer's financing is already clearing. That single scheduling decision determines whether the rest of the exchange runs on a predictable calendar or a scramble.

The exchange agreement between the exchanger and the qualified intermediary needs to be signed before the relinquished property closes, along with an assignment of the purchase and sale agreement naming the QI. Clark County title companies see exchange closings regularly, but they still need those documents delivered with enough lead time to route them through their own compliance review, particularly on deals with an out-of-state seller or a corporate entity on title.

An out-of-state seller adds its own wrinkle, since notarization and courier timing can add several days that a local closing would not need. Building that lead time into the schedule from the outset avoids a last-minute push to get signed documents back before the closing date.

Generic escrow instructions written for a cash sale do not automatically protect an exchanger's constructive receipt position. The instructions need explicit language routing net proceeds directly to the qualified intermediary's segregated account, not to the exchanger, and confirming that the exchanger has no right to demand, receive, or pledge those funds during the 180-day period. A title officer unfamiliar with exchange mechanics can miss this if it is not flagged in writing up front.

The safeguard is to review the escrow instructions line by line against the exchange agreement before either document is signed, rather than assuming the title company's standard template already accounts for exchange mechanics. A ten-minute review at the start avoids a wire sent to the wrong account weeks later.

The identification letter itself goes to the qualified intermediary, in writing, before midnight on day 45. Coordination means confirming with the QI in advance which delivery method they accept, fax, email, or a portal, and getting a timestamped confirmation back the same day the letter is sent, not assuming delivery because an email did not bounce.

Building in a buffer of a day or two before the actual deadline is a simple habit that removes an unnecessary source of risk. A letter sent on day 43 with confirmed receipt leaves room to fix a formatting problem that a letter sent at 11:50 p.m. on day 45 does not.

Before the relinquished property closes, the file should have:

• a signed exchange agreement naming the qualified intermediary
• an assignment of the sale contract to the QI, with notice to the buyer
• escrow instructions routing proceeds to a segregated QI account
• confirmed contact and delivery method for the 45-day identification letter
• written confirmation of the QI's fee schedule and any interest-earning terms on held funds

When an exchanger is selling one Las Vegas property and buying two, the qualified intermediary needs written instructions in advance covering how proceeds release between the two acquisitions, so a delay on the second closing does not strand funds needed for the first. That instruction should exist before either closing happens, not get improvised once the first replacement property is already under contract.

This kind of sequencing question comes up often in this market, where an exchanger might close on a Henderson multifamily property quickly while a second acquisition, say a Summerlin retail pad, is still working through title curative items. The qualified intermediary's proceeds-release instructions should anticipate that gap rather than react to it.