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 significantly changed. 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 primary 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:

• 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 do not align.
• Strengthen client trust: 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, especially in commercial or industrial transactions. These exceptions take into account the different market realities and the context of the transaction, where, for instance, 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 will focus 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 strengthen the industry's ethics and transparency in 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 about your future real estate initiatives, do not hesitate to contact a qualified broker like Bruno Couture, residential and commercial real estate broker (St-Jérôme, Mirabel, Prévost, Sainte-Sophie, and Saint-Hippolyte). He will guide you with expertise in accordance with the new legal standards, offering clear and fair representation.

For professional support in your real estate endeavors, contact Bruno Couture at (579) 888-3638 or visit his website at www.brunocouture.com.