Humber/Ontario Real Estate Course 4 Exam Practice

How can Buyer Huber, a US citizen, meet FINTRAC requirements to sign an offer remotely?

1. Return to Canada to sign the agreement.

2. Include a copy of his birth certificate and driver's license.

3. Exemption from Canadian identification requirements.

4. Use a mandated agent for identity verification.

5. Authorize the real estate agent to sign on his behalf.

6. Retain a Canadian lawyer for the process.

The correct answer is: Use a mandated agent for identity verification.

To meet FINTRAC (Financial Transactions and Reports Analysis Centre of Canada) requirements for signing an offer remotely, utilizing a mandated agent for identity verification is a crucial approach. This option ensures that the identity verification process complies with Canadian laws and regulations, which dictate that proper identification must be obtained, especially in real estate transactions. When a buyer is located outside of Canada, a mandated agent can act on their behalf and will typically have the training and authorization to perform the required identity verifications. This process helps confirm the buyer's identity and confirms that the transaction is legitimate, thereby fulfilling the obligations set forth by FINTRAC to prevent money laundering and other financial crimes. The other options either do not meet FINTRAC requirements or are less effective in ensuring compliance with identity verification protocols. For instance, returning to Canada solely to sign may not be necessary, while including personal documents like a birth certificate and driver's license may not suffice without proper verification measures. Exemptions from identification requirements would not apply in most cases, and relying on an agent to sign without verification may lead to legal complications. Engaging a Canadian lawyer could assist in legal matters but does not directly fulfill the identity verification obligations mandated by FINTRAC.