And no, your REALTOR® isn’t just being nosy. 😉
You’ve found the house. You’re ready to write the offer. And then your REALTOR® starts asking for your ID, occupation, and information about where your deposit is coming from.
It can feel a little… invasive?!? But I promise, we’re not being nosy. We’re doing our job. Welcome to FINTRAC.
First Things First: What is FINTRAC?
FINTRAC stands for the Financial Transactions and Reports Analysis Centre of Canada. That is a very long name for a federal agency that helps detect, prevent and deter things like money laundering and terrorist financing in Canada.
Real estate involves large amounts of money changing hands, which means real estate professionals have specific legal obligations under Canada’s anti-money laundering laws.
In plain English? Your REALTOR® is required by law to know who they’re working with and, in certain situations, where the money involved in a transaction is coming from. It isn’t optional, and it isn’t something your REALTOR® made up to add another form to your already impressive pile of paperwork.
So… What Do I Have to Provide?
Depending on your transaction and circumstances, your REALTOR® may need to collect or verify information such as:
Your identity
Your occupation
Information about the source of funds being used in the transaction
Information about your deposit
Details about who is actually purchasing or selling the property
Sometimes this can feel like a lot of questions, especially when you’ve worked with your REALTOR® before.
Yes, even if we’re friends.
Yes, even if I sold you your last house.
Yes, even if I absolutely, positively know who you are.
There are still FINTRAC requirements I have to follow.
Why Does the Source of Funds Matter?
This is probably the part that gets the most raised eyebrows. If I ask where your deposit or purchase funds are coming from, I’m not asking because I’m curious about your bank account. I’m asking because real estate professionals have obligations to document certain financial information and watch for transactions that may be unusual or suspicious.
For most buyers, the answer is incredibly ordinary: savings, proceeds from the sale of another home, investments, a gift from family, financing, or some combination of those.
We simply need to document it appropriately.
What Happens to My Information?
Your information isn’t collected for marketing purposes or because your REALTOR® wants to keep tabs on your finances.
FINTRAC requires real estate brokerages and professionals to collect and retain certain records as part of their legal compliance obligations. Your REALTOR® should also be able to explain what they need, why they need it and how the information is being collected.
And if something feels unclear? Ask. I would much rather explain why I’m requesting something than have you wondering why on earth I suddenly need to know your occupation while you’re trying to buy a house.
The Samantha-Sized Version
FINTRAC sounds intimidating. For the vast majority of clients, it really isn’t. It essentially boils down to this:
Real estate involves a lot of money, Canada has rules designed to help prevent that money from being used for illegal purposes, and REALTORS® are one of the professions required to help follow those rules.
So when I send you a secure link asking you to verify your identity or ask a few questions about your funds, there’s no red flag beside your name. It’s simply part of buying or selling real estate in Canada.
A little paperwork. A few questions. One more box checked. Then we can get back to the much more exciting stuff… like finding you a house. 🤎
Have questions about buying or selling in Regina, Saskatoon or Southern Saskatchewan? You never have to know all the answers before reaching out. That’s quite literally what I’m here for.
Sincerely, Samantha
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