A third party who holds money or other property for a short period of time in order to facilitate a tax-free exchange under Section 1031 of the IRS Code.The third party is called a qualified intermediary in the tax regulations.
Example: Jack sells his office building to Jill for $400,000. Jill pays the money to Larry Lawyer, who keeps it in his escrow account. Larry is the accommodating party. When Jack meets the timing requirements of Section 1031 and wants to buy an apartment building for $1,000,000, Larry will write a check to the seller for $400,000 and Jack will pay the remaining $600,000. In common language, Jack can't have his fingerprints on the money, so an accommodating party is necessary.