REAL ESTATE COMPLIANCE


Agency Relationships

N.S. Smith Real Estate Ltd., is a real estate brokerage licensed by the Real Estate Council of Ontario ("RECO").

Real estate brokerages are governed by the legal concept of "agency". Since there are several types of agency relationships, real estate brokerages are required to present all potential buyers and sellers with a copy of an "Agency Relationship Brochure" before commencing discussions about a potential transaction.

A potential buyer or seller is asked to acknowledge that they understand the different types of agency relationships by signing the Agency Relationship Brochure and real estate brokerages are required to keep a signed copy of the Agency Relationship Brochure on file for when inspected by RECO.

Download our printable standard Agency Relationship Brochure.

N.S. Smith Real Estate Ltd., will generally only represent one party in a transaction and provide "Customer Service" to the other party(s).

Download a sample of our standard Buyer Customer Service Agreement.

Prior to each assignment, we will discuss our agency relationship with all potential buyers and sellers and then present the parties with the appropriate representation agreement for execution.


Money Laundering and Terrorist Prevention

In accordance with the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, the Financial Transactions and Reports Analysis Centre of Canada ("FINTRAC") imposes "Client Identification" and "Client Verification" requirements on all real estate brokerages for all existing and new clients and/or customers in connection with all real estate transactions whether they close or not.

FINTRAC regulations require financial institutions and intermediaries, including real estate brokerages, to report to FINTRAC certain financial transactions, such as large cash transactions or electronic fund transfers of $10,000 or more.

FINTRAC regulations also require real estate brokerages to:

  • Ascertain the identity of their clients and/or customers whether they are individuals, corporations or other entities
  • Keep certain records on file, and
  • Implement an internal compliance program.
 

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