Who are the Major Participants in a 1031 TIC/DST Transaction?
• The TIC or DST Sponsor. • Sponsors are entities, typically experienced real estate investment companies that specialize in fractional ownership programs. TIC/DST Sponsors acquire or assist investors with the acquisition of their replacement property. Sponsors will conduct due diligence, arrange financing, raise equity (using the services of Broker-Dealers and their Registered Representatives), manage the property (either internally or by hiring a third party), provide asset management services and sell the asset all on behalf of their investors. • A Qualified Intermediary (QI) • The intermediary (or middleman) is required to hold, in a segregated holding account, the sales proceeds realized by the exchanger from the sale of relinquished property. The QI retains the proceeds until the earlier of the date the exchanger is prepared to close the acquisition or the replacement property and the expiration of either the 45-day identification period or the 180-day closing period. • A Broker-
