All Sales

If you qualify as a real estate developer, you must keep two types of information for all sales:

  • client identification information for all buyers (giving name, address, date of birth and occupation for all individuals, backed up by acceptable ID, and name, address, and proof of existence for all corporations and other bodies, also backed up by acceptable ID)    More
  • receipt of funds records for all amounts you receive towards the sale (including amounts, currency, who gave them, whether cash, cheque or equivalent, details of accounts the cheques were drawn on, etc. and ID for any individuals or companies other than the buyers who provide funds)    More

Many builders are already doing all or most of this, to help guard against identity theft and fraud.

In the study of RCMP money laundering cases that involved real estate, more than 60 per cent used someone else to purchase property and/or register mortgages. This hid the true ownership or source of funds. According to Beare and Schneider, a British Columbia drug trafficker told a police informant that he owned 25 homes that were used for marijuana grow operations. Four were registered in his sister’s name, while seven were registered to companies where he was a director. Police could not find any property listed in the trafficker’s name. 

 See ‘Money Laundering in Canada: Chasing Dirty
and Dangerous Dollars’

Margaret E. Beare and Stephen Schneider
University of Toronto Press, 2007