A Receipt of Funds record is required by the Proceeds of Crime (Money Laundering) and Terrorist Financing Act for every amount of funds that a REALTOR® receives in the course of a single real estate transaction.

Amendments made by the federal government in July 2008 stipulate it is the Buyers Agent who is responsible for completing and retaining the Receipt of Funds Record in a transaction when all parties are represented. If one party is unrepresented, the Receipt of Funds Record must be completed by the real estate agent representing the other party.

A REALTOR® does NOT have to keep a Receipt of Funds Record if the funds are received from a financial entity or a public body that is buying or selling, or if a Large Cash Transaction Record must be completed.

A REALTOR® does NOT have to keep a Receipt of Funds Record if the deposit goes directly to an individual not licensed for the trading of real estate. For example, if the deposit goes directly to:

• A builder or developer not represented by a REALTOR®
• A lawyer or notary
• Any professional not licensed for trading in real estate
  then the buyer agent is NOT required to complete the Receipt of Funds Record.

When a Receipt of Funds Record IS required, it is the responsibility of the broker to ensure that a record is kept for five years from the date it was created.

(i) When a REALTOR® completes a Receipt of Funds Record, they must also complete an Identification Information Record at the same time, unless the Identification Information Record was completed prior to the receipt of funds.

(ii) As per the July 2008 amendments, when both the buyer and seller are represented, it is the agent of the buyer who is required to complete and retain a Receipt of Funds Record in respect of the deposit made, regardless of who retains the deposit.

(iii) If one of the parties in the transaction is unrepresented, the real estate agent representing the other party is responsible for the Receipt of Funds Record, and must make reasonable attempt to gather the information about the deposit. If the information is unavailable, you should indicate why. You are not required to include the number and type of any account affected by the transaction or the name of the person or entity that is the holder of the account, if after taking reasonable measures you are unable to do so.

(iv) Where both parties are represented and the funds are deposited in the listing agent’s account, the buying agent must indicate that fact but is NOT required to include the number of the trust account, or the name or entity that holds the trust account.