QUESTIONS AND ANSWERS FOR PROPERTY PURCHASERS
Q:
Why do I need to provide my ID and proof of address to the estate agent and attorneys involved with my property purchase?
A:
The estate agent and the conveyancing attorneys are both considered to be accountable institutions which means both parties are obliged to adhere to requirements of the FIC Act. One of the primary requirements is that they cannot do business with anonymous clients, thus they require your ID and proof of address.
Q:
The estate agent and attorney asked me for my source of funds for the property purchase. What is source of funds and why do I need to provide it?
A:
The FIC Act requires accountable institutions, in this instance the estate agent and attorney, to clearly identify whether the funds you will use for this property transaction are from a legitimate source. They may ask you for further documents, like bank statements, to demonstrate how you acquired or intend to acquire the funds. This is part of the requirement of accountable institutions to assess your source of wealth and determine if it is in line with the transaction.
Q:
Does my estate agent have to be registered with the FIC?
A:
Yes, they have to be registered with the FIC and licensed by the Estate Agency Affairs Board. It is part of the Estate Agency Affairs Board’s requirements that an estate agent cannot be issued a licence to operate unless they are registered with the FIC. agent cannot be issued a licence to operate unless they are registered with the FIC.
Q:
Can I ask to see my estate agent’s licence and check its validity?
A:
It is highly recommended that you ask to see your estate agent’s licence. If you have doubts about its validity, please contact the Estate Agency Affairs Board.
Q:
Who is required to provide documents for FIC Act purposes? The buyer or the seller of the property?
A:
It is the view of the FIC that both the seller and the buyer of the property would need to be identified by the estate agent and the attorney involved in the property transaction.