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Compliance Gates & Jurisdictions

Buyer Desk implements fail-closed compliance semantics: every brief is blocked from matching until human brokers verify jurisdiction-specific gates. This section documents each gate and its verification process.


Fail-Closed Architecture

By default, all gates block. Matching proceeds only after broker verification.

Brief created Gates seeded as pending (per jurisdiction) Guardian (compliance engine) checks: gate verified? Gate verified? → proceed Gate pending or failed? → BLOCK (brief status: blocked_compliance) Broker verifies gate in dashboard Brief resets to active, matching re-triggers

This is intentional. A brief with unverified gates cannot match candidates. Compliance is never assumed; it is explicitly verified and recorded by the broker.


Latin America: AML/KYC Gate

Onoots treats Latin America as a region with a shared regulatory profile: dual currency (local + USD for high-value transactions), emerging buyer representation, and a single AML/KYC gate. Country packs (Mexico, Colombia, Argentina, and others) inherit the same model.

aml_kyc — Anti-Money-Laundering (regional FIU)

PropertyValue
JurisdictionLATAM (region; per-country pack)
Regulatory AuthorityThe country’s Financial Intelligence Unit (UIF Argentina, UIAF Colombia, UIF Mexico, etc.)
RequirementKnow-Your-Customer due diligence; buyer identity and source-of-funds verification
Applies toAll transactions; reinforced above country cash thresholds
Verified byBrokerage compliance officer or broker
EvidenceID/passport, proof of address, bank statements for high-value transactions

In most Latin American countries, real-estate intermediaries are “obligated subjects” (reporting entities). The reporting threshold and retention period vary by country (commonly 5 years). Onoots does not store sensitive buyer documents; brokers keep independent compliance files.


Canada Ontario: Three Gates

1. foreign_buyer — Foreign Buyer Status

PropertyValue
JurisdictionCA-ON (Canada Ontario)
RequirementDetermine whether the buyer is a Canadian resident or a foreign national
WhyForeign buyers can trigger additional taxes (speculation tax)
Verified byAgent during intake (self-reported) + broker confirmation
EvidenceID + proof of residency (lease, utility bill, tax return)

2. fintrac — FINTRAC Compliance

PropertyValue
JurisdictionCA-ON (Canada Ontario)
Regulatory AuthorityFINTRAC (Financial Transactions and Reports Analysis Centre of Canada)
RequirementLarge Cash Transaction report (≥ CAD 10,000); Suspicious Activity Report (SAR)
Applies toTransactions with cash down payment ≥ CAD 10,000
Verified byBrokerage lawyer or compliance officer
EvidenceBank statements, proof of funds, source-of-funds declaration

FINTRAC is linked to the RCMP. Failure to report Large Cash Transactions is a federal offense. If a brief’s availableCash ≥ CAD 10,000, the fintrac gate must be verified before any matching occurs.

3. bra — Buyer Representation Agreement (BRA)

PropertyValue
JurisdictionCA-ON (Canada Ontario)
RegulationReal Estate Services Act (RESA); Trades Act (Ontario)
RequirementSigned BRA between brokerage and buyer before showing properties
WhyEstablishes agency relationship, commission right, fiduciary duty
Verified byBrokerage with signed document
EvidenceScanned signed BRA (TREB-approved form or equivalent)

United States: Four Gates

The largest and most mature market. After the NAR settlement (2024), a written buyer-representation agreement is required before showing properties across much of the country.

1. state_license — State License

PropertyValue
JurisdictionUS (per-state pack)
RequirementThe agent must hold an active real-estate license in the transaction’s state
WhyLicensing is state-level, not federal; operating unlicensed is an offense
Verified byBrokerage (verifies the agent’s active license)

2. buyer_agency — Buyer Representation Agreement

PropertyValue
RequirementSigned buyer–broker agreement before showing properties (post-NAR settlement, 2024)
WhyEstablishes agency and the buyer broker’s compensation
EvidenceSigned agreement (state/local MLS-approved form)

3. fincen_aml — FinCEN AML Reporting

PropertyValue
Regulatory AuthorityFinCEN (Financial Crimes Enforcement Network)
RequirementResidential Real Estate Rule: beneficial-ownership reporting on non-financed transfers to legal entities/trusts
Verified bySettlement professional / compliance officer
EvidenceBeneficial ownership, source of funds

4. firpta — FIRPTA Withholding (foreign seller)

PropertyValue
RequirementTax withholding (typ. 15%) when the seller is a foreign person
Applies toApplies on the sell side; the gate flags the transaction for the closing agent

US licensing is state-level and taxation varies by state/county. Buyer Desk flags the gates; the brokerage confirms licenses and closing procedures locally.


United Arab Emirates (UAE): Three Gates

A strong foreign-investment market (Dubai, Abu Dhabi). Currency AED (pegged to USD). No income tax or capital-gains tax; the main cost is the DLD transfer fee.

1. rera_registration — RERA/DLD Registration

PropertyValue
Regulatory AuthorityRERA (Real Estate Regulatory Agency) / DLD (Dubai Land Department)
RequirementBroker and transaction registered with RERA/DLD
EvidenceRERA broker card; transaction registered with the DLD

2. freehold_eligibility — Foreign Ownership Eligibility

PropertyValue
RequirementForeign ownership is allowed only in designated freehold zones
WhyOutside freehold zones, foreigners cannot hold full title
Verified byBroker (confirms the unit is in a freehold zone)

3. uae_aml — AML (goAML / FIU)

PropertyValue
RegulationFederal Decree-Law No. 20 (2018); real estate as a DNFBP
RequirementKYC + suspicious-transaction reporting to the FIU via goAML
EvidenceIdentity, beneficial ownership, source of funds

Property ≥ AED 2M can qualify the buyer for the Golden Visa — a strong commercial hook, but not a compliance gate.


Gate States & Transitions

pending → verified (broker confirms compliance) → failed (broker flags non-compliance) blocked_compliance (at least one gate pending/failed) [broker verifies all gates] active (brief ready to match)

Verification Audit Trail

Every gate verification is recorded:

{ "brief_id": "brief_abc123", "type": "aml_kyc", "status": "verified", "human_approver": "Broker (broker_id: bro_xyz)", "verified_at": "2026-07-04T14:32:00Z", "jurisdiction": "LATAM" }

This audit trail is:

  • Broker-accessible in the dashboard (read-only)
  • Not exposed to agents (compliance is a broker-only view)
  • Immutable — verified gates cannot be un-verified; open a support ticket if an error occurs

Gate Matrix by Jurisdiction

JurisdictionGates
Latin Americaaml_kyc
Canada (Ontario)foreign_buyer · fintrac · bra
United Statesstate_license · buyer_agency · fincen_aml · firpta
UAErera_registration · freehold_eligibility · uae_aml

Each brief is bound to a single jurisdiction. Brokers manage gates per-brief; switching jurisdiction requires creating a new brief.

Onoots does not provide legal advice. Brokers are responsible for maintaining independent compliance with all local and federal regulations. Use Buyer Desk as a workflow tool, not a substitute for legal advice.


API: Verify Gate

PATCH /api/dashboard/buyer/briefs/brief_abc123/compliance Authorization: Bearer <broker-jwt> Content-Type: application/json { "type": "aml_kyc", "status": "verified" }

Response:

{ "ok": true, "allVerified": false, /* at least one gate still pending */ "retriggered": false /* not all gates verified, no re-trigger */ }

If all gates verified:

{ "ok": true, "allVerified": true, "retriggered": true /* brief resets to active, matching re-triggers */ }

Errors:

StatusErrorCause
403forbiddenCaller is not a broker; must have broker role
404not_foundBrief or gate does not exist
409already_verifiedGate was already verified; cannot re-verify

Next: Market Validation

Learn about the launch markets: regulatory landscape, financing, and market conditions across Latin America, Canada (Ontario), the United States, and the UAE.

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