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 in 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 was 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 main objective 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.
• Enhance client trust: Consumers can now be assured that their broker is only advocating for 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 permitted in certain cases, notably in commercial or industrial transactions. These exceptions take into account the different market realities 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 a 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.

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 established to strengthen the industry's ethics and the transparency of transaction processes, ensuring that consumers' interests are always prioritized. This means that market players can operate in a more balanced and safe environment. If this regulation sparks curiosity or concern regarding your future real estate initiatives, do not hesitate to consult your residential real estate broker, Stephane Loyer. Stephane Loyer, who serves the Lanaudière region, will guide you with expertise in compliance with the new legal standards, offering clear and fair representation.

Visit our website. For more information, call (450) 898-3338.