Personal information now manditory
Realtors required to confirm the buyer’s ID.
Canadian realtors are bracing for a customer backlash starting today, as they become new foot soldiers in the battle against money-laundering. Federal regulations that kick in today will force realtors to start asking property sellers and buyers personal information never before required.
In Ontario alone, 47,000 realtors will be expected to fall in line or face stiff penalties. “We know there is going to be consumer rejection on this and we are just following the law,” said Gerry Weir, a London realtor and president of the Ontario Real Estate Association (OREA).
Realtors will be required to ask for the name, address, date of birth and occupation of property buyers and sellers, plus ID such as a driver’s licence or passport.
Weir said Ottawa has made little effort to educate people about the changes, and realtors feel they’re being forced into an uncomfortable enforcement role. He said realtors will have to keep the information for seven years and submit it on request to the Financial Transaction and Reports Analysis Centre of Canada (FINTRAC), a federal agency set up to track suspicious transactions that could be related to money-laundering or terrorism.
If the buyer is foreign or from another part of Canada, the real estate broker will be required to hire an agent in the buyer’s community who can confirm the buyer’s ID.
If a client refuses to disclose the information, Weir said, a realtor would have to walk away from the deal or report the person to FINTRAC.
“Even if I have known you for 30 years, I still have to ask for that information,” he said.
Weir said it could get even worse.
He said Ottawa also wanted to require a receipt-of-funds record, with information on anyone who actually supplied money for sales, including relatives or friends.
Weir said the government backed down on that, but he expects it will only be temporary.
“That is the next step; that will happen,” he said.
FINTRAC officials appear confused about the new rules.
Spokesperson Peter Lamey at first said one piece of ID was needed from buyers and sellers, and information such as date of birth and occupation wouldn’t be required.
He later said the information wouldn’t only be required from buyers and sellers, but also from anyone who contributed money to a deal as part of the receipt of funds record, contradicting Weir’s belief that Ottawa had backed down on that provision.
Negotiations on the rules were handled by the federal Finance Department and not FINTRAC, Lamey said.
Competition Bureau’s inactivity
Canada’s Competition Bureau just got a report card that it may not want to show its parents. The Global Competition Review, published by Britain’s Law Business Research Ltd., has maintained Canada’s 3½-star “good” rating, but warned that the regulator’s performance slipped last year after its reputation “appears to have faltered.”
The problem? Despite additional staff, the report said the bureau’s overall level of activity and timeliness “appears to have slumped over the past few years.” Citing anonymous authorities in the competition bar, academics and economists, the report said critics complain that the bureau’s “strong” emphasis on policy work and international issues may be “eating up too much of the bureau’s resources.”
Key points of concern cited are: a decline in cartel fines to $7.9-million last year from $39-million in 2006, a “scant” record of enforcement against companies that abuse their industry dominance and declining efficiency in its reviews of mergers that trigger competition reviews. The report, which ranks the world’s leading competition regulators, credited the bureau for its work on an alleged cartel in the chocolate industry. But it chided the Ottawa regulator for its drawn-out reviews of the Labatt Brewing Co. Ltd. merger with Lakeport Brewing Co. Ltd. and its two-year-old abuse-of-dominance probe of sugar makers.
A bureau spokesman said he agrees with the review’s finding that criticism reflects a “perception problem.” The facts, however, dispute the public image, he said, noting that in the past year the regulator has closed more abuse-of-dominance cases and launched more cartel cases than during the previous 12 months.
We’ve been hearing for over a year now that the Competition Bureau is investigating the real estate industry and their MLS cartel which controls the Canadian real estate industry but to date no results.
Ontario’s Real Estate Regulation
The approaching height of summer brings a busy time for Ontario’s real estate market. Ontario is providing information and resources to help protect all consumers when buying or selling a home. When buying or selling real estate property, being aware of all the ‘do’s and don’t’s’ can help make an increasingly complex transaction less challenging.
Amongst the several things Ontarians should be aware of when buying or selling a property, include:
Your deposit on a property is insured.
To help stay informed of what to know before purchasing or selling property, a good source of information is the Real Estate Council of Ontario. RECO has a dedicated Consumer Information section that provides helpful information about mortgage fraud, title fraud, marijuana grow houses and much more.
“Buying or selling a home is an important, emotional milestone in our lives. Real estate transactions have become increasingly complex, so we encourage all Ontario consumers to get the facts and protect themselves in any real estate transaction,” said Ted McMeekin, Minister of Government and Consumer Services.
Before signing a representation agreement with your real estate broker or sales person, make sure you know how long the agreement will be in effect.
RECO is responsible for regulating trade in real estate, in the public interest, on behalf of the Ministry of Government and Consumer Services.
Before you begin working with a real estate broker or salesperson, you should use the Real Estate Council of Ontario’s (RECO) online search feature to confirm if he or she is registered.
The information available includes the registration status, the current expiry date of registration and regulatory activities related to the brokerage, broker or salesperson.
RECO’s website, at www.reco.on.ca, includes a dedicated Consumer Information section, which provides consumer-focused information about mortgage fraud, title fraud, marijuana grow houses and much more.
If you have a general question or concern about the conduct of a broker or salesperson, you may contact the Office of the Registrar at 416-207-4800 or 1-800-245-6910.