Personal identification now needed to buy home
If you’re going house-shopping, you’d better take more than your chequebook.
A driver’s licence, birth certificate, passport or other government-issued identification is now needed to buy or sell a house through a real estate agent, thanks to changes in the federal Proceeds of Crime (Money Laundering) and Terrorist Financing Act.
Implemented Monday, the amendments require real estate agents to obtain proof of identity from buyers and sellers, including date of birth and occupation. They must also complete a report of all monies received during the transaction and retain the information for five years.
“If somebody doesn’t want to provide the information, we have to walk from the deal and under the rules, as I understand it, we would have to report that,” said Randy Weins, broker-owner of Weins World Real Estate Inc. and president of the Central Alberta Realtors Association.
Weins said the act also requires that every brokerage firm appoint a compliance officer, ensure its realtors understand their obligations and make sure all required forms are completed.
“If you don’t and you’re audited by FINTRAC (Financial Transactions and Reports Analysis Centre of Canada), the fines for a first offence are up to $500,000 and/or imprisonment.”
The new requirements will increase the administrative work and cost of operating a real estate firm, said Weins. And they might also prompt a reaction from clients.
Identification must be obtained from everyone, he said, including clients a realtor might have a longtime relationship with.
“It’s every transaction.”
The identity of clients living elsewhere must also be confirmed, added Weins, which could necessitate retaining agents in other cities or countries to satisfy the act.
“That really occurs a lot on the West Coast and in the larger centres like Toronto, where you’re dealing with overseas buyers.”
Weins thinks the amended act contains some holes. For instance, private sales are not covered and lawyers do not have to report on cash they handled for real estate clients.
But he thinks the real estate industry, including sellers and buyers, will adapt to the new rules.
“After a year or so, it’ll probably become just the way it is.”
Contact Harley Richards at hrichards@reddeeradvocate.com
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