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 property

Why this change?

The primary goal of this legislative change is to protect consumers and ensure fair, conflict-free representation 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 difficult situation where the interests of both parties are not aligned.
• Strengthen client trust: Consumers can now be sure that their broker is solely advocating for 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 permitted in certain cases, particularly in commercial or industrial transactions. These exceptions take into account the different realities of the market 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 your 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 introduced to strengthen the ethics of the field as well as the transparency of transaction processes, ensuring that the interests of consumers are always prioritized. This means that market players can operate in a more balanced and secure environment. If this regulation piques your curiosity or raises concerns about your future real estate endeavors, don't hesitate to contact a qualified broker.

For in-depth expertise and analysis in line with the new legal standards, consult David Voyer, a residential and commercial real estate broker serving the regions of Rimouski, Rivière-du-Loup, and Trois-Pistoles. With his assistance, you will benefit from clear and fair representation.

For more information, visit his website at: www.davidvoyer.com or contact him by phone at (418) 717-9107.