The Financial and Consumer Services Commission (FCNB) is aware that new forms of deposits are becoming available for real estate transactions, including crypto currency and deposit bonds.
FCNB is recommending against using cryptocurrencies as a form of deposit in real estate transactions due in their high-risk nature. If they are being considered in a real estate transaction, FCNB is strongly recommending the parties seek legal advice prior to their use.
FCNB is also recommending that deposit bonds be used with caution. Agents must ensure their clients fully understand the risks and any fees associated with them.
Licensed agents must ensure their clients fully understand the implications of using an alternative deposit and take extra steps to access, provide and document clear advice if a client is considering using them in a real estate transaction.
To help our regulated sector understand the risks, the professional implications, the legal requirements and the record-keeping expectations on using alternative deposits in real estate transactions, FCNB is providing the following guidance:
General information when using alternative deposits in real estate
Financial and Consumer Services Commission
Consumer Affairs Division
200-225 King Street, Fredericton