Receipt of Funds

‘Receipt of Funds’ Information

As someone who comes under the legislation, you have to record information every time you receive money towards the sale. (If you receive $10,000 or more in cash, you also have to make a Large Cash Transaction report.) 

Bottom Line Tip:

It’s probably easiest to simply photocopy all cheques and similar payment documents, and attach a copy to the file.

Exclusion Tests:

1.  Do you ‘receive’ the funds?

If NOT (i.e., the payment goes directly to your outside licensed real estate agent/broker, or your lawyer, in trust), you are not responsible for these records. In many cases, a builder and/or inside sales staff will only receive the initial deposit, or staged series of deposits. Closing funds are transmitted directly to the builder’s lawyer in trust.

2.  Is the buyer a financial institution or ’public body’?

If SO, you do not need to keep a ‘Receipt of Funds’ record. Financial institutions include Canadian banks or foreign banks authorized to operate in Canada, credit unions, trust or loan companies, government deposit instititions, etc. Public bodies mean provincial or federal departments or Crown agencies, incorporated municipal bodies, or a public hospital authority. 

What do you have to do?

  • record the amount paid and the payment form (cash, cheque, credit card, bank draft, etc.)
  • for any cash payment (Canadian or foreign banknotes or coins), the amount of cash, the currency used, and the method of delivery; e.g., in person, by another person, via courier or delivery company
  • for any non-cash payment, the account and financial institution the payment is drawn on, including account number and account holder’s name
  • the account you deposited the funds into

When do you have to do it?

  • when the payment is received

How do you have to record the information?

  • As long as the information is in your files and can be made available to FINTRAC investigators if they need it, that is fine.

How long must the records be kept?

  • Five years from the completion of the transaction.

Receipt of Funds Record Checklist 

Click here for a checklist of main requirements for a receipt of funds record.