New laws that kick in today will trigger major changes to real-estate transactions, as part of federal efforts to battle money laundering.

Under the new regulations, Realtors will have to collect personal information from property sellers and buyers, such as their name, address, date of birth and occupation, backed up by identification such as a driver’s licence or passport.

When dealing with foreign buyers, agents in Canada will now have to hire local agents who can vouch for the identity of the buyer.

The agents will be required to hang onto that information for five years and have it available for the Financial Transaction and Reports Analysis Centre of Canada (FINTRAC), if needed. Otherwise, the information will remain confidential.

The centre was established by the federal government in an effort to track suspicious property deals and prevent shady buyers from dumping large amounts of cash into property purchases.

Bill C-25, which was passed in 2007, demands several industries do their part to help put a stop to terrorist financing and money laundering.

It is estimated that nearly 63 per cent of money laundering is done through real estate.

ReMax reported having $2.6 billion in sales in 2007 in 67,000 transactions.

“Real estate agents have had legal obligations under the federal government’s push to prevent criminal activity and terrorism since 2001,” says Calvin Lindberg, president of The Canadian Real Estate Association. “In the first phase of compliance, real estate agents were required to report only suspicious transactions, or transactions involving more than $10,000 in cash,” he said in a news release issued Monday.

Now, real estate agents have to complete a report on the receipts of all funds received during the transaction, not just for $10,000 or more.

If an agent is dealing with the corporation, they must collect corporate documentation and the names of the corporation’s directors.

In cases where only one of the parties involved in the transaction is represented by the agent, identification must still be collected.

“Those buying or selling privately will be asked by the agent representing the other party involved in the transaction to provide proof of identity as well, and that record must be kept by the real estate agent involved in the transaction,” the news release said.

Bob Linney, CREA spokesperson, said there are also ways to keep track of buyers and sellers who choose to complete the transaction without the help of an agent.

“Sales involving private sellers only are not covered by the real estate regulations,” he told CTV.ca. “FINTRAC assumes they will be captured by regulations governing the banking industry now, and in addition by the legal profession when their compliance requirements kick in later.”

The new regulations will be non-negotiable and buyers who are unable or unwilling to provide the required information will not be able to complete property purchases. Additionally, the agent would be required to walk away from the deal or report the buyer to FINTRAC.

In Ontario alone, 47,000 realtors will be subject to the new rules.

Over the next six months, the government will perform random spot checks on real estate transactions. But once that window closes, agents will face fines, or even jail time, if they fail to comply with the regulations.

The new requirements for realtors are part of regulatory changes that Finance Minister Jim Flaherty announced in December of last year to strengthen Canada’s anti-money laundering and anti-terrorist financing regulations.

“The new regulations bring Canada’s anti-money laundering and anti-terrorist financing regime in line with the international standards set by the Financial Action Task Force, a G8 created body,” states a news release from FINTRAC.

It was another very successful Janeway Children’s Miracle Network Telethon this year with the final total coming in at over 2.3 million dollars fetching a new record in donations.

As I mentioned in a previous post, RE/MAX offices in St. John’s were answering phones and volunteering for the Janeway Telethon. RE/MAX believes in giving back to the community and in doing so we donate a portion of each home sale to the Janeway.

This year RE/MAX presented a cheque during the Telethon for a total of $53,938.

This weekend (May 31 and June 1) the Janeway Children’s Hospital Foundation is holding the 24th Annual Janeway Children’s Miracle Network Telethon. This year’s theme The Heroes Among Us highlights the patients, the physicians and the medical staff of the Janeway Children’s Health and Rehabilitation Centre and the men and women who work so hard to support our province’s only hospital dedicated entirely to pediatric health care.

On Sunday, June 1 RE/MAX offices in St. John’s will be answering phones and volunteering for the Telethon. As well, each year we provide a donation check to this wonderful cause. RE/MAX believes in giving back to the community and in doing so we donate a portion of each home sale to the Janeway.

Since 1992 RE/MAX Sales Associates have raised in excess of $50 million for CMN, $21 million of that in Canada alone, in contributions through RE/MAX’s Miracle Program in Canada.

Together we can make miracles happen for children in your neighbourhood. Please donate this weekend.

Alberta’s red-hot economy is fueling demand for residential real estate in Nova Scotia, PEI, New Brunswick, and Newfoundland this year, according to a report released today by RE/MAX Ontario-Atlantic Canada.

“Strong economic performance in Western Canada continues to spillover into other parts of the country,” says Michael Polzler, Executive Vice President and Regional Director, RE/MAX Ontario-Atlantic Canada. “A serious influx of Western Canadian purchasers has bolstered housing sales in every Atlantic province. Tremendous job opportunities available in Alberta that allow commuting to and from the East Coast have served to further strengthen home-buying activity in the region. Last, but certainly not least, after living in Western Canada for many years, more and more Maritimers are returning home.”

Newfoundland-Labrador (St. John’s, Corner Brook, Grand Falls) currently leads the region overall in terms of percentage increases in both unit sales and average price, with the number of homes sold up close to 18 per cent year-to-date and average price up almost 15 per cent, compared to the same period one year ago. Two thousand and seven was the first and only year since Newfoundland joined Confederation in 1949 that the province led the country in economic performance. GDP growth soared to 13.4 per cent due to mining and oil development, according to Statistics Canada.

“Housing performance in Newfoundland has been nothing short of remarkable,” says Polzler. “There are $10 billion in capital works projects on the table and the pressure in the real estate market is only starting to build. By year-end 2008, housing sales and values are expected to climb by double-digits, leading not only the region, but the country, in terms of percentage increase.”

The 25th Eastern Newfoundland Canadian Home builders Association Annual Home Show will be held May 2nd to 4th at the Mile One Centre. Once again RE/MAX will be headlining the show - this year with a wine tasting event. In order to receive a ticket to the wine tasting you must speak with a RE/MAX Realtor.

Again this year will be the popular Ugliest Patio Contest and Room make over Contest.

Each admission ticket gives you a chance to win a free fishing trip for two to Labrador Salmon Lodge in Forteau, Labrador as well as over $10,000 in door prizes.

25th Annual Home Show
May 2nd - 4th, 2008
Mile One Centre
Presented by RE/MAX

Although a recent report pegged St. John’s as one of the most affordable cities in the G7 nations, affordability is a growing concern. Buyers continue to face challenging market conditions, including unprecedented demand and extremely tight inventory levels.

Multiple offers are quite prevalent. It is not uncommon to see quality, new listings generate three to four offers after only a few days on the market, with most selling for more than list price. Bungalows are especially coveted.

Despite a sense of urgency in the marketplace, buyers remain quite determined. Most are willing to compromise by way of necessity, while others ante up more money to compete. Some entry-level purchasers are sitting on the fence, waiting for more product to come on stream with the Spring market and better weather.

Currently, average price in Greater St. John’s hovers at $172,000. Although the St. John’s downtown core has more affordable options, most purchasers prefer Woodlands, Cowan Heights, and Mount Pearl, where three-bedroom, resale homes start from $180,000.

Condominiums are a viable alternative, but this type of product is popular with only a small percentage of first-time buyers. St. John’s Condos can start from $100,000 for a one-bedroom unit in an old military conversion to $130,000 for a two-bedroom in an older building in the northwest end of the city. Duplex product, though limited, is also growing in demand, and more units are coming on stream.

The least expensive sales recorded to date in St. John’s include a detached home with some new upgrades that changed hands for $140,000 and an 800 sq. ft. condo apartment that sold for $95,100 in an older, but renovated, building. Both were located in the city’s east end.

With average prices forecast to experience double-digit momentum yet again this year, it is expected that the first time buyer segment will remain very active as purchasers try to buy in before prices rise further.

RE/MAX has a long tradition of supporting worthwhile causes. In 2004, the company threw its support behind the Canadian Breast Cancer Foundation.

The RE/MAX offices in St. John’s will once again host their Yard Sale for the Cure on May 31^st. Last year local RE/MAX Realtors raised over $2,000.00. We have plans to do even better this year.

RE/MAX invites you to join the event that brings hundreds of neighbourhoods together for a massive one day yard sale in support of breast cancer.

“Yard Sale for the Cure” is the natural evolution of our involvement with breast cancer, and yet another occasion for us to give back to the community. In real estate, it’s often said that you only have one chance to make a good first impression. There is no truer adage when it comes to selling your home. A well maintained and clutter-free home will sell more quickly and for a higher price than a similar home that is not as inviting. “Yard Sale for the Cure” provides homeowners with an excellent opportunity to unload items no longer in use, while simultaneously raising much-needed funds for Breast Cancer Research.

Fundraising events such as “Yard Sale for the Cure” ensure we all play a role in finding a cure for breast cancer.