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, known as dual representation, has long been allowed under certain circumstances. But are you aware of 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 objective of this legislative amendment is to protect consumers and ensure fair representation without conflicts of interest in real estate transactions. Here are the main advantages:

• Avoid 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.
• Strengthen client confidence: Consumers can now be certain that their broker solely defends their interests in a transaction.
• Improve transparency: By avoiding dual representation, the rules become clearer for all parties involved.

Possible exceptions

Although dual representation is prohibited for residential transactions, it remains allowed in certain cases, such as in commercial or industrial transactions. These exceptions take into account the 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 guarantee that your broker focuses solely on your needs and success in the transaction. For brokers, this new regulation requires increased adaptation and vigilance to comply with these new legal requirements.

Conclusion

In short, the amendment to the Real Estate Brokerage Act represents a major advancement for the residential real estate market in Quebec. It was implemented to reinforce the ethics of the field 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 safe environment. If this regulation arouses curiosity or concern regarding your future real estate initiatives, do not hesitate to contact a qualified broker. Monique Gauthier, a real estate broker operating in the regions of Chambly, Granby, and surrounding areas, will guide you with expertise in accordance with the new legal standards, offering clear and fair representation.

For more information, contact Monique Gauthier, real estate broker for Chambly, Granby, and surrounding areas at (450) 357-0435 or visit the website www.moniquegauthier.ca.