Funds can be disbursed to escrow for earnest money for common expenses such as preliminary title reports, appraisals and credit reports when the Qualified Intermediary has been Assigned into the transaction in place of the Exchanger.

Funds must be requested by escrow, not the Exchanger to avoid the issue of the Exchanger’s control of the funds. If the Exchanger advances any of these funds THROUGH ESCROW they can be reimbursed to him at the close of the escrow without triggering any taxes. It is to be noted, however, that loan fees are considered "boot", and if exchange funds are used to pay them, it is a taxable event.