Daniel Polakovic London ON Real Estate Professional

On June 23rd 2008, new federal money laundering and anti-terroist financing regulations came into effect that require real estate agents to collect personal identification information from buyers and sellers.

What your realtor needs to do to comply with the law...

The real estate agent you are dealing with is required by federal law to ask for and verify your personal information. By providing this information when requested, you will ensure that they can meet their obligations. The Act requires realtors to keep identification records,and track all funds (not just large amounts of cash) provided during the real estate transaction.

ID Please....

Under the new rules, realtors are required to obtain,record,and retain the personal information of their clients,including the date of birth and occupation. To do this, they must ask for a government-issued identification document such asa driver's license, passport, or residency card. You should not provide your Social Insurance card as identification.

Realtors are required to keep a record of this information on file in the brokerage for a period of five years. For the purpose of compliance with this law, realtors are not required to keep photocopies of governement issued ID, just the factual data contained on it. However, your realtor may make a photocopy of your ID because of other requirements related to the real estate transaction.

Are you a private buyer or seller?

If you are not represented by a real estate agent in this process - in other words, you are buying or selling privately - the law requires the real estate agent that is involved representing the other party, to request your personal information and keep that information on file.

Is there anyone else involved?

There are aspects of your real estate transaction that might prompt the real estate agent you are dealing with to ask you for more information. For instance, you may be asked whether you are acting on behalf of a third party while conducting your transaction. This basically means you are following the instructions of someone else in completing the transaction, or someone else (individual or company) is involved in financing the transaction.

If there is a third party involved your realtor is also required by law to obtain their identification information, and keep that information on file for five years.

Details of the deposit....

Every time funds are received by a realtor (e.g. deposit) during the course of a real estate transaction, they are required to record the amount received and how it was obtained. Your real estate agent then mucst record this information, and also keep it on file at the brokerage for a five year period.

Your information is kept confidential....

The only reason the realtor keeps your personal information on file is to comply with the new federal laws. It will not be used in any commercial way, and will not be provided to anyone else except in response to a request from the federal agency responsible for compliance, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). The law requires these files to be kept at the broker's office for 5 years.

What you need to know about this new federal law...

While Bill C-25 is Canada's newest legislative initiative to curtail money laundering and terrorist financing, we have had legislation since 2001 that required designation industries in Canada (including real estate) to report suspicious transactions and large cash transactions of $10,000 or more.

Money Laundering ....

Money laundering is the process used to disguise the source of money or assest derived from criminal activity. This illegal activity can include drug trafficking, smuggling, fraud, extortion and corruption. Criminals must launder the profits and proceeds from these crimes to be able to enjoy them. The scope of criminal proceeds is significant; the International Monetary Fund (IMF) estimated teh sum $500 billion (U.S.) is laundered worldwide each year.

Terrorist Financing....

Terroist financing operates somewhat differently from money laundering. While terrorist groups do generate funds from criminal activites such as drug trafficking and arms smuggling, they also obtain revenue through legal means. Supporters of terrorist causes may, for example, raise funds from their local communities by hosting events or membership drives. In addition, some charity or relief organizations may unknowingly become the route where donors contribute funds that may eventually be used to commit a terrorist act.

How does FINTRAC assist law enforcement and security agencies?

The Financial Transactions and Reports Analysis Centre of Canada, or FINTRAC, collects analyzes and discloses financial information and intelligence on suspected money laundering and terrorist financing activites. It was created as a part of a Canadian government initiative to fight money laundering and terrorist financing. Although it operates at arm's length from law enforcement, FINTRAC's primary role is to provide law enforcement agencies with information to help them with their investigations.

FINTRAC is required by law to protect the personal information it receives from unauthorized disclosure.

Who Must Report To FINTRAC?

The following persons and entities must report suspicious and certain other transactions to FINTRAC:

* real estate brokers and agents;

* financial entities including banks, credit unions, caisses populaires, trust and loan companies and agents of the Crown that accept deposit liabilities.

* life insurance companies, brokers or agents;

* securities dealers, portfolio managers and investment counsellors who are provincially authorized;

* persons engaged in the business of foreign exchange dealing;

*money services businesses;

* accountants and accounting firms when carrying out certain activities on behalf of their clients;

* casinos; and

* individuals and any entity importing or exporting currency or monetary instruments (such as a money order) of $10,000 or more.

Additional information about this federal initiative, the federal legislation, and the role of FINTRAC in the reporting system is availabl at www.fintrac-canafe.gc.ca or call toll free: 1-866-346-8722 (FINTRAC)

By The Canadian Press

OTTAWA - House prices are expected to fall eight per cent across Canada this year and sales are predicted to slip nearly 17 per cent, according to a new report from The Canadian Real Estate Association.

The association, known as CREA, said sales on the benchmark Multiple Listings Service fell 17.1 per cent in 2008. It said sales are expected to fall another 16.9 per cent to 360,900 units in 2009 - which would be the lowest level for national sales activity since 2000.

Sales are expected to fall in every province, led by declines in British Columbia, Alberta and Ontario.

CREA predicts sales to rebound by 9.9 per cent to 396,600 units in 2010, with the biggest recovery forecast for B.C. and Alberta.

Prices are expected to drop eight per cent this year, with figures falling most in Western Canada and Ontario.

Meantime, the average home price in Newfoundland & Labrador is forecast to rise 4.8 per cent in 2009.

CREA said it expects prices to stabilize in 2010, with annual price increases of one per cent or less in five provinces.

The report comes the same day Canada Mortgage and Housing Corp. said housing starts slipped by 10.9 per cent to 153,500 units in January, compared to the month before.

Economist say that is the largest per cent monthly drop since March 1995.

Purchasing a home can be a very overwhelming experience for anyone... especially for a first timer.. there are so many things you don't think of.. that wouldn't dream of thinking of. You have never been involved in this type of transaction before and in most cases, you have no idea how real estate/home buying even works.

I have compiled a check list of important things to be aware of and things you should do while preparing for you first home purchase. These things are merely suggestions based on experiences I have had with First Time Buyer's in the past.

"Am I Ready To Buy A Home?"

1. Speak with a Mortgage Professional about a Mortgage Pre Approval. This will help you get an idea of what you can afford, and what type of down payment, if any, you require. ( Feel free to contact me for more information about 100% financing )

2. Think about the out of pocket costs when purchasing your first home:

* Down payment (if any)

* Legal Costs ( remember our incentive! Purchase your first home with us and we will pay

your lawyer's fees. Contact me directly for further details)

* Land Transfer Tax --- Visit the below website for more info on LTT refund for 1st timer's

http://www.rev.gov.on.ca/english/refund/newhome/

* Miscellaneous Purchasing costs such as a Home Inspection

* Moving Costs

3. Contact Dan and Rachael Polakovic. We can set up a meeting to go over what you can afford and what you are looking for in a home.

Questions To Ask Yourself When Looking For A Home

1. What area's would I prefer to/not to live in?

2. What type/style of home would I like?

3. How many bedrooms?

4. Would I consider living in a condo/townhouse?

5. Would I consider a fixer upper?

6. What other options are important to me? i.e garage, fenced yard, close to schools,treed lot etc

Let's Start Looking

In my experience I wouldn't suggest seeing more then 5 homes at a time. Shopping for the perfect home can be very overwhelming and after seeing house after house they can tend to blend together and this can become very confusing. Take it slow, bring a pen and paper or even a camera with you to each showing. This way you can reflect back and compare once you have seen all of the properties. This will also help you use the "process of elimination" when narrowing down your choices.

Be vocal with your realtor. Ask questions, voice your opinion... don't be shy. We are not mind readers and the only way we can help you find the perfect home is if we know what you are thinking.

Be open minded. You are not there to look at the current owners taste (or lack there of ) in decorating. See the house for the potential it has structurally. Always remember... the furniture doesn't stay with the home, paint is inexpensive, wall paper comes down, carpets can be cleaned.

Don't be an emotional purchaser... I know.. that seems impossible. Try to look at the whole picture. No one house is perfect. It is nearly impossible for one home to meet all of your expectations to a "T". There will be some things on your wish list that can't be met. But just remember, this is your first home. You have to start some where. 9 times out of 10 the first home you buy is not the home you live in forever. Think of it as your starting point. Give yourself time to make it what you want it to be, or a stepping stone to better things to come.

Try not to max yourself out. Because you are approved for a certain amount, doesn't mean you have to spend it. Try to go below that amount to start. This way you can get your "feet wet" in the home owning world.

Leave room for improvement. Even if you aren't a handy person. You don't want to buy a home that has been upgraded to its maximum. You don't want to be at the top of the sale scale when you purchase a home. Because chances are you will be selling this home in the future, you want to be able to get a good return on your investment ( hopefully more then just the regular market value increase ). So leave a little room that you can improve upon the property to increase it's value over time, and increase your chances of making a profit later on.

So You Found The Perfect Place... Now What?

Let's make an offer. Once you have found the place for you.. I, your realtor, will do research on the area to see what similar homes are selling for and we can decide together what a good offer would be. Offer stage can be very intense. Sometimes an offer can go back and forth several times before finally coming to an agreement. Then there are time line's that have to be followed in what is called the "conditional period". The conditional period is the time frame given (usually 7 - 10 days ) after your offer has been accepted to have your financing and insurance secured, and a home inspection (not required but recommended ) completed. It's sort of a "grace" period that leaves you time to be completely satisfied with the structure of the home and your financial scenario before the contract of the sale is binding. At the time of your offer, this can be explained in greater detail by us, your realtors.

So the offer has been accepted. Your home inspection is complete. You are satisfied with your finances. You now own the house (on the closing date that is ) This is another things to think about. When you put an offer on the home you include a closing date. This is the day you will officially own the home. Closing dates usually range somewhere between 15 and 60 days. This leaves you time to give notice if you are currently renting, and to get ready to move in. It also leaves time for the seller to prepare the home by moving their things out.

What Happens On Closing Day?

You will meet with your lawyer probably a day or two before to sign your mortgage and ownership paperwork. Your lawyer can also go over the details of your purchase and answer any questions you may still have. This way you are not doing any additional running around on the closing day which can tend to be stressful in their own right. Then on closing day, your lawyer and the seller's lawyer will obtain all paperwork and handle all the financial aspects of the deal. Once everything is completed i.e the money is paid from your finance company to the seller your lawyer will contact you and you can pick up the keys to your new home. This is usually in mid to later afternoon.

You Still Have Questions?

Not to worry... it's alot to take in. That's what we are here for. Feel free to contact us anytime with your questions on home ownership. And the best part??? Our services to you, the buyer, are FREE!

So if you think you are ready to take the leap into home ownership, let me know! I am more then happy to answer any of your questions and help you find your first home. It's easier then you think!!