banner banner

I am acting for the vendor in a real estate transaction. I will be receiving the proceeds of the sale from the trust account of the purchaser’s lawyer and, after paying off the outstanding mortgage, will be giving my client a cheque drawn on my trust account for the balance. Do I have to verify my client’s identity?

Yes. The payment to your client is a financial transaction that triggers the verification requirements. Although there is an exemption from verification with respect to the funds you received from the trust account of another Canadian lawyer you are acting as a financial intermediary when you provide funds to your client. In any event, in all real estate transactions it is prudent practice to verify your client’s identity.