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, known as double 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 double representation have changed significantly. The Real Estate Brokerage Act has been amended to prohibit double 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 amendment is to protect consumers and ensure fair representation without conflicts of interest in real estate transactions. Here are the main benefits:

• Avoiding conflicts of interest: A broker representing both the buyer and the seller could find themselves in a delicate situation where the interests of both parties are not aligned.
• Strengthening client trust: Consumers can now be assured that their broker is only advocating for their interests in a transaction.
• Improving transparency: By avoiding double representation, the rules become clearer for all parties involved.

Possible exceptions

While double representation is prohibited for residential transactions, it is still allowed in certain cases, particularly 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 are now guaranteed that your broker is focused solely on your needs and success in the transaction. For brokers, this new regulation demands 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 consumer interests are always prioritized. This means that market participants can operate in a more balanced and secure environment. If this regulation sparks curiosity or concern regarding your future real estate endeavors, do not hesitate to contact your real estate broker, Sonia Dubois, real estate broker South Shore. With her expertise in the new legal standards, she will guide you with clear and fair representation.

For advice and professional support, visit the website of your broker at the address: www.soniaduboisimmobilier.ca or call at (514) 250-1802.