Humber/Ontario Real Estate Course 1 Exam Practice

If an employee purchases property for their employer, how is the employee viewed by FINTRAC?

1. A partner

2. An representative

3. A principal

4. A third party

The correct answer is: A third party

In the context of FINTRAC (the Financial Transactions and Reports Analysis Centre of Canada), when an employee purchases property for their employer, the employee is viewed as a third party. This classification arises because the employee is acting on behalf of the employer and is not a direct participant in the ownership or the financial responsibilities related to the property. As a third party, the employee facilitates the transaction but does not have a stake in the property themselves. This distinction is important for regulatory and compliance reasons, particularly concerning reporting and anti-money laundering measures which FINTRAC enforces. Recognizing the employee as a third party emphasizes the transactional relationship and ensures that compliance responsibilities are correctly assigned to the employer, who is the principal party in the property transaction.