Listing Agent: Making Sure the Buyer Has Money


With a cash offer coming in on one of my listings, I am asking for proof of funds but the Buyer’s agent is refusing. The Buyer does not wish to provide any evidence.

They have not sold a home or anything I can look up. The last thing I want is for the deal to not close if a financial issue presents itself.


We should have a TRESA based answer for this question. Previously, many Buyers’ agents may have declined indicating that it was not the Seller’s business. That was under REBBA, but now we have TRESA in effect since 1 December 2023.

The RECO Information Guide actually addresses this problem and in dealing with Sellers it indicates that the Listing agent will:

“Vet offers and potential buyers to ensure they can afford to buy your property”.

That may have posed an issue previously, but now, you are going to ask “if they have any money”.

Just think of the hoops as a Listing agent on a rental, you are going to put a prospective Tenant through to see if they can afford $2,000.00 per month. On a million dollar purchase, you are not going to ask anything? That would be quite absurd!

Even a 20% deposit (which is the maximum) will fall short if your clients are planning to buy something else.

So, you are liable in the lawsuit, you have to pay the RECO discipline fine, and you may lose a deal or two over the bad publicity. Continue to pursue some satisfactory evidence.

Brian Madigan LL.B., Broker

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