Money Laundering laws (FINTRAC) and Real Estate Developers

Back in June this year, all Real Estate Agents had to learn and be in compliance with the Anti-Terrorist and Money Laundering laws. The new regulations came into effect on June 23, 2008, targeting all professionals in the “money industry”, or those who deal with large cash transactions.

The rules applies to accountants, notaries, casinos, financial institutions, life insurance companies, dealers of precious stones and metals, securities dealers, and real estate professionals.

Real Estate developers were off the hook, up until next year. Effective february 20, 2009, all Real Estate Developers have an obligation to comply with the provisions of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.

More information:

• Real Estate Developers And Money Laundering Law – What You Need To Know [Ottawa Business Journal]
• Agents: New Rules for Compliance with FINTRAC [Ontario Real Estate Source]
• To know more of the rules and regulations, visit FINTRAC’s website.

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How to repossess your income property

You found an income property you like.

The place is perfect for you; great location, in fantastic condition. It’s fully rented with good paying tenants in long term leases. The revenues are good enough to cover all the expenses; including your own part of the mortgage….Because, after all, you are buying the place to move in. Right?

Living rent free, what a dream!

But wait a minute. Isn’t the building fully rented?

“Yes, but as the new owner, I can take back one of the units whenever I decide to” – You might be thinking.

Well, it doesn’t really work that way. You see, according to the :

“All tenants have the right to remain in the rental unit indefinitely as long as they respect the terms of the lease…”

How can you repossess one of the units, if there’s no problem with the terms?
Do you have to wait until someone decides to leave in order to move in?

Fortunately, the law also mentions…

“(However) the landlord may terminate the lease under certain circumstances.”

The complete article has been moved to: Repossessing your income property

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