Dear David,

We recently bought a home for the first time in twenty years. We were uncomfortable with the number of personal questions asked, including where we worked, our job titles, and having to show government-issued ID, despite having known our Realtor for decades. I was required to disclose my last employer even though I’m retired, and my wife’s health card wasn’t accepted as identification. Has the buying process gotten more intrusive? – UNEASY

DEAR UNEASY: You’re not imagining it, the process of vetting buyers and sellers has changed. When you last moved 20 years ago, real estate transactions were genuinely simpler. The shift traces back to the summer of 2008, when anti-money-laundering safeguards became mandatory in Ontario. 

At the time, Canadian real estate had been formally identified as a major avenue for money laundering. Large dollar values, rising prices, and historically limited oversight made property transactions attractive to criminals who were trying to move or “clean” money. In response, Realtors became subject to the federal anti–money-laundering regime overseen by FINTRAC (Financial Transactions and Reports Analysis Centre of Canada), Canada’s national financial intelligence unit, and compliance stopped being optional. Brokerages faced audits, penalties became real, and collecting ID and background information became a legal requirement.

Government-issued photo ID is now required from buyers and sellers, even if you’ve known your Realtor for years. Health cards are insufficient because provinces restrict their use outside medical purposes, so alternatives like a driver’s licence or passport are required. The questions about employment and job titles, even for someone who has been retired for years, exist because FINTRAC requires Realtors to take reasonable steps to understand the source of funds involved in a transaction. For retirees, that often means documenting a last employer to complete the picture.

It’s important to note that this information isn’t casually shared or kept forever. It’s stored securely, retained for a legally defined number of years, and then destroyed. The records are only examined by authorities if a transaction is flagged, or if an individual is identified as part of an investigation.

PRO TIP: The law requires the same documentation for everyone, without exception. While the identification process can feel more invasive than it did 20 years ago, it isn’t arbitrary. Since 2008, Realtors have been on the front lines of protecting the integrity of Canada’s real estate system. The rules apply equally to everyone, and while they can feel cumbersome, they exist to prevent abuse, protecting consumers and the real estate market as a whole. #Advice #AskDavid #TheNegotiator 

David is a top-selling Broker in Kitchener-Waterloo Region. He works personally with you when selling or buying your home. Moving? Get it right. Ask David today! Call or text 519-577-1212.