In a major move to tackle one of real estate’s most time-consuming challenges, FCT has acquired a majority stake in Fintracker, a digital identity verification solutions company.

The Oakville-based company announced the news on Jan. 28, saying the partnership is poised to streamline compliance with KYC and anti-money laundering (AML) regulations while enhancing security and efficiency in real estate transactions.

“Fintracker’s advanced identity verification technology, combined and integrated with our trusted services, will help create a more secure, seamless, and fully compliant experience for all stakeholders while shaping the future of connected and intelligent identity verification processes.,” says Michael LeBlanc, CEO, FCT.

Fintracker has contracts with many of Canada’s real estate boards and brokerages, including TRREB subsidiary PropTx. 

Why Fintracker?

Founded by former Realtor Simon Fiore, Fintracker was born out of a need to simplify the tedious FINTRAC compliance process. In a 2023 interview with Real Estate Magazine, Fiore shared that the idea for Fintracker originated in his Winnipeg brokerage. “I was like many agents struggling with these forms and not handing them in in a timely fashion,” Fiore said. His initial goal was to solve the problem for his own brokerage, but the solution gained traction.

The platform has since evolved into a tool for completing FINTRAC forms, digitizing workflows and reducing the potential for human error. During the pandemic, its ability to facilitate remote identity verification for non-physically present clients made it an important tool for many brokerages.

A shared vision for the future

With Fintracker’s solutions now integrated into its operations, FCT says its goal is to create a “connected identity ecosystem” that accelerates the home-buying process while safeguarding sensitive personal data. Fintracker’s founders, Fiore and CTO Matt Amihude, will continue leading the company as it expands under FCT’s umbrella.

“Partnering with FCT enables us to scale our mission of simplifying compliance for agents and brokerages across Canada,” says Fiore. “Our shared vision is to minimize friction for both the public and our clients, while raising the bar for KYC and AML compliance. Together, we’re fostering greater trust, transparency, and efficiency in real estate transactions.”

Fiore, who described himself as “the least tech-savvy agent in the country” when he started Fintracker, believes there’s no replacement for human relationships in real estate.

“Technology is always going to try and replace us, but one-on-one and face-to-face interactions, gaining trust and building relationships are still the keys,” Fiore told REM.

The real estate industry is known for its fast-paced, dynamic nature and high-stakes transactions. Amidst the hustle and bustle of buying, selling, and managing properties, human resources (HR) professionals in this field face unique challenges that demand strict compliance with labour laws and ethical practices. From handling independent contractor relationships to ensuring adherence to federal and provincial regulations, management and HR departments in real estate must be well-versed in legal considerations to protect both the business and its employees.

Recruitment and retention

Many people believe that recruitment and retention in the world of real estate is proprietary to the industry. As a result, they are hesitant to entrust this task to anyone, often setting themselves up for unnecessary work, unsuccessful results and future legal troubles.

While there are specific nuances to keep in mind when recruiting agents or support staff into your business, the principles of recruitment are actually not that different from other industries:

• Having a strong employee value proposition (and agent value proposition)
• Having a consistent interview process
• Knowing which questions you can and cannot ask
• Having a contract ready for signing
• On-boarding plan and 30, 60, 90 days KPIs

Retention is also not a concept specific to the industry. All businesses are fighting the battle to keep their know-how in-house, retail top performers and have a solid succession plan in case someone leaves. Making sure your top performers are happy and supported comes down to leadership; asking questions about what you can do better to make their experience more meaningful and lucrative will reduce unnecessary turnover in both agents and employees.

Compliance with labour laws

Real estate brokerages and teams employ a diverse workforce consisting of sub-contractors, property managers, financial managers, administrative staff, and support personnel. Ensuring compliance with labour laws, such as minimum wage regulations, overtime, and working hours, is crucial.

To address this, broker/owners, team leaders and office managers must keep abreast of ever-changing labour laws and establish clear policies and procedures to guarantee adherence. Regular training sessions and communication with employees are essential to foster a culture of compliance within the organization. Having a well-defined employee handbook and hiring an employment lawyer to review HR practices can provide an extra layer of protection and guidance.

Handling independent contractor relationships

In the real estate industry, independent contractors, such as real estate agents, are a common part of the workforce. However, classifying workers accurately as employees or independent contractors is critical to avoid legal disputes and penalties. Misclassifying employees as independent contractors can also lead to wage and hour violations, tax issues, and potential legal battles.

There are strict guidelines provided by the CRA that discuss the main differences between an employee vs a contractor that should be adhered to at all times to avoid being blind-sided by prorated charges for expenses like CPP ( Canadian Pension Plan), EI (employment insurance) and vacation pay owed to name a few. In essence – if you have control over someone’s hours of work, the equipment on which they work, and the work is done continuously (not on a project basis), and the work relationship is exclusive — they are, for all intents and purposes, your employees.

HR departments must work closely with legal counsel to distinguish between employees and independent contractors based on specific criteria defined by relevant laws. Real estate businesses can mitigate potential risks by conducting periodic audits of contractor relationships and ensuring compliance with classification standards.

Handling confidential and sensitive information

Real estate transactions involve a significant amount of sensitive information, such as financial data, personal identification, and legal documents. Employee files and their security are equally as important as keeping client data safe. Management should implement strict data security measures to safeguard this confidential information from breaches or unauthorized access.

Establishing secure IT systems, conducting regular security audits, and educating employees and members of management with access to personnel information about data protection best practices are essential steps in mitigating the risk of data breaches. Owners, managers and HR should collaborate in order to develop comprehensive data protection policies that align with industry standards and comply with relevant data privacy laws.

Handling conflicts and disputes

While a misalignment between a brokerage and an agent usually results in said agent simply moving their practice to a different brand or starting their own, a conflict between internal team members or disagreement between the terms of employment between the business and one of the employees can have long and extremely negative effects of the team.

Having a well-trained management team or an external HR partner that can navigate and investigate the causes of conflict, find appropriate solutions for both parties to part ways amicably and, more importantly, stop it from impacting the rest of the business is a crucial part of preserving the reputation of your employer brand.

By prioritizing legal considerations, HR departments can build a strong foundation for a compliant, ethical, and thriving workforce in the fast-paced world of real estate. Regular training, collaboration with legal experts, and staying updated on regulatory changes are vital components of a successful HR strategy in this dynamic industry.