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 was 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 goal of this legislative change is to protect consumers and ensure fair and conflict-free representation 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 are not aligned.
• Strengthen client trust: Consumers can now be sure that their broker is solely defending their interests in a transaction.
• Improve 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, notably in commercial or industrial transactions. These exceptions take into account 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 focuses only 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. To get tailored support, consider consulting a broker such as Roxane Guilbault, a residential real estate broker in Candiac, La Prairie, Saint-Constant, and Sainte-Catherine.

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 industry 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, feel free to contact a qualified broker like Roxane Guilbault, your specialist in Candiac, La Prairie, Saint-Constant, and Sainte-Catherine. She will guide you with expertise according to the new legal standards, offering clear and fair representation.

For more information, visit www.roxaneguilbault.info or call (514) 443-9513.