Humber/Ontario Real Estate Course 3 Exam Practice

When must Salesperson Milani complete a FINTRAC identification form for a new buyer client interested in purchasing a property?

1. Immediately before a buyer representation agreement is signed

2. At the time a signed agreement of purchase and sale is submitted

3. No later than the end of the first meeting with a buyer client

4. Before the first property showing

5. After the first property viewing

6. Once the mortgage approval is received

The correct answer is: At the time a signed agreement of purchase and sale is submitted

The most appropriate time for Salesperson Milani to complete a FINTRAC identification form for a new buyer client is at the time a signed agreement of purchase and sale is submitted. This aligns with money laundering prevention regulations, which require that identification be gathered when it is most critical in the transaction process. By completing the identification form at this point, Milani ensures compliance with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) regulations. These regulations emphasize that certain due diligence measures must be taken as part of the transaction process, primarily once a meaningful intent to purchase has been established. Though options may discuss other times in the process, the key moment is when a signed agreement of purchase and sale indicates that the buyer is serious and is likely committing to the transaction, thus triggering the need for proper identification to fulfill legal obligations.