To qualify for a 1031 Exchange, Relinquished and Replacement Properties must be qualified as "like-kind," and the transaction must be structured properly. Providing Illinois investors with 1031 Exchange replacement properties guidance, FAQ, rules and 1031 Exchange listings.The tax payer enters into an "exchange agreement" with the qualified intermediary. All exchanges require the use of a Qualified Intermediary (QI). As a Qualified Intermediary for relinquished or replacement properties located in the following states: California,. A 1031 Exchange in Illinois enables investors to sell an investment property and reinvest the proceeds in a new property while deferring capital gains tax. The use of a Qualified Intermediary is required to complete a valid delayed exchange. In order to complete a successful 1031 exchange, an investor must not take constructive receipt of the proceeds from the sale of the relinquished property.