A “Mandatary” in a Real Estate Transaction in Ontario

Question:

What is a Mandatary?

Answer:

The Mandatary is an individual appointed to verify either an

  • individual,
  • a corporation or
  • other entity

for FINTRAC purposes.

Assuming for example that a transaction is to take place in Ontario, but the Buyer lives in Alberta.

The Buyer’s Agent is under a duty to properly identify and verify the identity of the Buyer. This is a federal government requirement, is order to reduce terrorism and money laundering.

The Buyer’s Agent in Ontario will have to retain someone in Alberta to do this. They will have to provide special instructions regarding the process etc. including the correct forms.

In most cases, they will retain a real estate agent who is familiar with the process or a lawyer. When another country is involved, usually a lawyer will be retained as the Mandatary.

Brian Madigan LL.B., Broker

www.OntarioRealEstateSource

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