Should you be looking to Buy and/or Sell a property here in Vancouver, well in BC for that matter, there will be a process you will be required to follow. Of course there is the search, writing an offer, listing contracts and so on and so forth, but there are will also be other paperwork which you will be presented with. It can seem like A LOT …..
The truth behind this paperwork is they are predominantly there to protect you as a consumer, by making sure we, as agents, are following our CREA (Canadian Real Estate Association) rules and regulations. As well as Federally, making sure we are performing the right measures to avoid money laundering taking place in our industry.
This paperwork, although it may seem excessive, all have a purpose. But more importantly WHAT are you signing and why? Well below we are going to breakdown the additional paperwork, other than the obvious, that you will come across on either side of the Real Estate transaction. Hopefully this will shed some light on the subject and give you some clarity!
FINTRAC is an acronym for Financial Transactions and Reports Analysis Centre of Canada - Try having a few drinks and saying that one fast! This form (page 1 pictured below) is to prevent money laundering from taking place. This will be a form you complete yourself, and your REALTOR will be required to obtain a copy of a Government I.D from each of you in the transaction. This form also applies to you if you’re purchasing through a business. You will complete this form yourself, with your REALTOR. It will ask you pretty basic questions such as Name, Address, I.D Number, Occupation etc. Along with confirmation you are physically in Canada buying/selling property.
Next on our list is the Privacy Notice form. This short one pager will outline what particular designations mean such as ‘Realtor’ & ‘Brokerage’. It will also advise how your information will be collected and to whom it will be distributed etc. You can opt to have your information declared Private on this form.
Disclosure of Representation In Trade
This is a relatively new form, introduced on June 15, 2018. Upon rules changing within the Real Estate Industry, this form is now mandatory for a Realtor to provide you with. This document explains and outlines HOW your relationship with your Realtor will work and describes the different forms of relationship available to you - Unrepresented Parties, Designated Agency and more. The form will be explained to you by a Realtor in order for you to completely understand your options moving forward, along with what that means for your Realtor’s fiduciary duties. You can decline signing this form if you like. However the REALTOR will note they have provided you with it, and you have declined to sign, making sure they are still being compliant. You may be presented with this form at an Open House from a hosting Realtor to avoid any confusion on what that agents responsibilities are to his client.
The thing to remember is these forms are mandatory. Therefore, although you do not have to sign them all if you do not want to, a REALTOR has a legal responsibility to provide them to you.
Once you read through them, it’s easier to see they are for your protection and turn what can be a fearful stack of paperwork, into something that assists you. Of course if you have further questions on any of the above forms, feel free to reach out and we are happy to help!
Until Next Week,