A friend of me is buying a condo in Toronto. The local agent has drafted the bid using the standard forms issued by the OREA. My friend is refusing to sign this form because it allows to run a background check on him. He has already provided ID (passport) and his bank has guaranteed he has the financial resources to pay.

The local agent refused and stated that he had the legal obligation to obtain his permission to run a background check (although he did add no such background check would be done). The local agent refered to the new legislation on Fintrac and explicitly mentioned the War on Terror). My client has no problem with being reported to Fintrac.

Some background: the client (my friend) is an upstanding member of our Californian community, a decorated war veteran of the war on terror and still recovering from injuries incurred in combat. Until recently he hold a position within the armed forces requiring access to confidential information. So we are pretty sure there is nothing to be found.

My friend has send a formal complaint to his broker, still without reaction. Is there anything else we can do?

If he is buying a condo; the condo may have their own approval or acceptance policy for prospective new occupants.

Clause 26 in the OREA Agreement of Purchase and Sale refers to Consumer reports;

Our office Policy and forms are here; http://www.humberbayshore.com/siteobjects/soeditor/lite/docs/Fintrac%20instructions%20June08.pdf

The agent also has the option of marking the forms refused but then we are the ones at risk as the onus is on us.

I looked at them again this morning, and I cannot find anything that speaks to a background check?

With "Foreign" [sorry] buyers we are instructed to get 3rd party attestations as to the persons identity. ie Foreign Buyer over a fax and email buying to invest.

I hope this has been helpful.