True or False: Can a real estate agent 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 ban 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 change is to protect consumers and ensure fair representation without conflicts of interest 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 certain that their broker is defending only their interests in a transaction.
• Improving transparency: By avoiding dual representation, the rules become clearer for all parties involved.

Possible exceptions

While dual representation is prohibited for residential transactions, it remains allowed in certain cases, particularly in commercial or industrial transactions. These exceptions consider the different market realities and transaction contexts, 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 is solely focused 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. It is wise to consult your residential real estate broker, such as Caroline Desbiens (Terrebonne, Saint-Lin-Laurentides, and Repentigny), for personalized support that complies with the new standards.

Conclusion

In short, the amendment to the Real Estate Brokerage Act represents a significant advancement for the residential real estate market in Quebec. It was established to enhance the ethics of the industry as well as the transparency of transaction processes, ensuring that consumer interests are always prioritized. This means that market participants can operate in a more balanced and secure environment. If this regulation raises curiosity or concern about your future real estate initiatives, do not hesitate to contact your broker for informed advice. Caroline Desbiens, residential real estate broker for Terrebonne, Saint-Lin-Laurentides, and Repentigny, will guide you with expertise that complies with the new legal standards, offering clear and fair representation.

For additional information, visit our website or contact Caroline Desbiens directly at (514) 585-2038.