What QIs Should Know About the 721 Exchange
The 721 Exchange, or UPREIT (Umbrella Partnership Real Estate Investment Trust), offers certain investors a tax-deferral alternative to the traditional 1031 Exchange. This strategy may appeal to clients—especially older investors—seeking to defer taxes, gain liquidity, and diversify through Real Estate Investment Trusts (REITs). As Qualified Intermediaries (QIs), understanding the core mechanics and suitability of the 721 Exchange is crucial to offering clients informed guidance.