Humber/Ontario Real Estate Course 4 Exam Practice

For FINTRAC identification purposes, who qualifies as a third party?

1. An investment advisor directing a client on property purchase

2. A mortgage lender a buyer might contact

3. A lawyer closing the sale for a buyer client

4. An employee acting on behalf of an employer corporation

5. A property appraiser assessing value for the buyer

6. A family member advising on the transaction

The correct answer is: An investment advisor directing a client on property purchase

For FINTRAC identification purposes, a third party is considered to be an individual or entity that is involved in the transaction but is not the direct client. This can include parties that provide some form of assistance or influence over the transaction without being the principal parties themselves. In the context of this question, an investment advisor directing a client on property purchase fits the definition of a third party because they are not directly purchasing the property. Instead, they are advising the client, influencing their decisions and outcomes as part of the transaction process. Those who do not qualify as third parties include mortgage lenders, lawyers, employees of corporations, property appraisers, or family members directly related to the client transaction. These roles consist of individuals or entities with a more direct involvement in the transaction or represent specific stakeholders' interests. For instance, a mortgage lender is providing funds for the purchase, a lawyer is representing and acting on behalf of the buyer in the legalities of closing, and family members giving advice are often not acting in a professional capacity to affect the transaction directly. Thus, the investment advisor stands out as the correct choice for a third party as their role is advisory rather than transactional.