My real estate rep asked to see my driver’s licence. Was this really necessary?
My real estate rep asked to see my driver’s licence. Was this really
necessary? I’m always concerned about identity theft.
March
is Fraud Prevention Month, so this is a good opportunity to discuss identity theft. A key advantage of working with a registered
real estate salesperson, or broker, is that this person is required by law to
ensure the parties in a transaction actually are who they say they are, and
that nothing potentially illegal is occurring. Part of this stems from
anti-money laundering regulations that were introduced in 2001, and overseen by
the Financial Transactions and Reports Analysis Centre of Canada, or FINTRAC.
That’s
why a salesperson will ask the client to show a piece of government-issued
photo ID, such as a driver’s licence or a passport, and then confer with the
other party’s rep. When the buyer and seller are ready to make a deal, each
knows the other is legitimate, but neither has the other’s personal data.
Showing
photo ID is a fairly common practice in Canada. But be very careful if you’re
asked to provide a Social Insurance Number (SIN) — a SIN is a valuable piece
of information for identity-theft scammers. If you determine being asked for
your SIN is unreasonable, then either offer another form of identification, ask
to speak to the individual’s manager or walk away.
The
only time a real-estate salesperson might ask for your SIN is when a deposit
has earned an amount of interest in a brokerage trust account that makes it
reportable to the Canada Revenue Agency. With few exceptions, though, your SIN
really should be shared only with your employer, and with government
departments and agencies when you pay your taxes or apply for benefits.
One of
the scariest kinds of identity theft in real estate is title fraud. A criminal will use phoney documents to transfer
ownership of a property to his or her name, and then either attempt to sell the
place or apply for a mortgage. After the money has been secured, the criminal
will vanish and the homeowner is left without a home or with a huge mortgage on
the property. Mortgage fraud can be very difficult to remedy.
You
would also be well-advised to:
- Regularly review your credit card, bank and
other financial statements;
- Verify the information in your credit report
each year. Your credit report can be obtained through Equifax Canada or
TransUnion Canada;
- Pay attention to your billing cycles, and
contact a customer-service rep if your bills don’t arrive on time;
- Never give out personal or financial
information over the phone, via email or online unless you initiated the
conversation, or know who contacted you; and
- Shred or destroy all financial documents
before you throw them out.
If
you suspect that you are a victim of identity theft, it’s important that you
file a report with your local police and contact: your financial institution
and credit card company; both national credit bureaus (Equifax Canada and
TransUnion Canada); and the Canadian Anti-Fraud Centre.
In
addition, if an identity theft crime involves the buying or selling of a
property, tell the Real Estate Council of Ontario.
Joe Richer is registrar of the Real Estate Council
of Ontario (RECO). He oversees and enforces all rules governing real estate
professionals in Ontario. Email questions to askjoe@reco.on.ca. Find more tips at
reco.on.ca, follow on Twitter @RECOhelps or on YouTube at
youtube.com/RECOhelps.