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 are you familiar with the current regulations?

The answer: False

As of 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 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 key benefits:

• Avoid conflicts of interest: A broker representing both the buyer and the seller can find themselves in a delicate situation where the interests of both parties are not aligned.
• Strengthen client trust: Consumers can now be certain 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

Although dual representation is prohibited for residential transactions, it remains allowed 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 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 modification of the Real Estate Brokerage Act represents a major advancement for the residential real estate market in Quebec. It has been established to strengthen the ethics of the field as well as the transparency of transaction processes, ensuring that consumers' 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 regarding your future real estate initiatives, do not hesitate to consult a professional in the field such as Corinne Thouvenin, a residential real estate broker in Saint-Jean-sur-Richelieu, Venise-en-Québec, and Mont Saint-Hilaire. She will guide you with expertise in line with the new legal standards, offering clear and fair representation.

For more information, visit the website of Corinne Thouvenin or call (514) 293-2368.