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 agency, 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 agency have changed significantly. The Real Estate Brokerage Act has been amended to prohibit dual agency 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:

• 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 advocating for their interests in a transaction.
• Improving transparency: By avoiding dual agency, the rules become clearer for all parties involved.

Possible exceptions

Although dual agency is prohibited for residential transactions, it remains permitted in certain cases, particularly in commercial or industrial transactions. These exceptions take into account the different market realities and 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 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 summary, the amendment of the Real Estate Brokerage Act represents a major advancement for the residential real estate market in Quebec. It has been introduced to strengthen the ethics of the field and the transparency of transaction processes, ensuring that consumers' interests are always prioritized. This means that market participants can operate in a more balanced and secure environment. If this regulation piques curiosity or concern regarding your future real estate initiatives, do not hesitate to consult your residential and commercial real estate broker, Caroline Harbec for the regions of Saint-Jean-sur-Richelieu, Venise-en-Québec, Chambly. Her expertise will allow you to advance your projects with confidence. For any questions or need for support, she will guide you with expertise in line with the new legal standards, offering clear and fair representation.

To learn more, visit the website carolineharbec.com or contact Caroline Harbec at (438) 802-0223.