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, called dual representation, has long been permitted 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 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 amendment is to protect consumers and ensure fair and conflict-free representation in real estate transactions. Here are the main advantages:

• 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 solely defending their interests in a transaction.
• Improving 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, 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 a seller, you now have the assurance that your broker is focused 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 of 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 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 raises curiosity or concern regarding your future real estate initiatives, do not hesitate to contact Martin Buisson, licensed real estate broker Laval, or Mariya Tarasova, residential real estate broker, for their expertise on these new legal standards. These brokers will guide you with clear and fair representation.

For personalized advice, visit the site buissontarasova.ca or contact them at (514) 909-2609 for Martin Buisson and (514) 699-9304 for Mariya Tarasova.