True or False: Can a real estate broker represent both a buyer and a seller in a real estate transaction?

True or False: Can a real estate broker represent both a buyer and a seller in a real estate transaction?

When it comes to real estate transactions, the question of whether a broker can represent both the buyer and the seller often arises. This practice, called dual representation, has long been allowed under certain circumstances. But do you know the current regulations?

The answer: False

Since June 10, 2022, the regulations surrounding dual representation have changed significantly. The Real Estate Brokerage Act has been amended to prohibit dual representation in residential transactions. This prohibition applies to several types of transactions, including:

• The purchase of a residential property
• The sale of a residential property
• The rental or exchange of a residential building

Why this change?

The main goal of this legislative amendment is to protect consumers and ensure fair and conflict-free representation in real estate transactions. Here are the main benefits:

• Avoiding conflicts of interest: A broker representing both the buyer and the seller may find themselves in a delicate situation where the interests of both parties are not aligned.
• Strengthening client trust: Consumers can now be sure that their broker is solely defending their interests in a transaction.
• Improving transparency: By avoiding dual representation, the rules become clearer for all parties involved.

Possible exceptions

Although dual representation is prohibited for residential transactions, it is still allowed in certain cases, particularly in commercial or industrial transactions. These exceptions take into account different market realities and the context of the transaction, where, for example, in the commercial sector, negotiation dynamics are often less personal and more focused on economic considerations.

What this means for you

If you are a buyer or seller, you now have the assurance that your broker is focusing solely on your needs and success in the transaction. For brokers, this new regulation requires increased adaptation and vigilance to meet these new legal requirements.

Conclusion

In summary, the amendment to the Real Estate Brokerage Act represents a major advancement for the residential real estate market in Quebec. It was introduced to strengthen the ethics of the industry as well as the transparency of transaction processes, ensuring that consumer interests are always prioritized. This means that market players can operate in a more balanced and secure environment. If this regulation raises curiosity or concern regarding your future real estate endeavors, do not hesitate to contact François Leduc, residential and commercial real estate broker serving St-Bruno, Sainte-Julie, Varennes, and Boucherville. They will guide you with expertise in accordance with the new legal standards, offering clear and fair representation.

www.francoisleduc.ca
Phone: (514) 880-0245