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 allowed 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 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 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 the two parties are not aligned.
• Strengthening client confidence: 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

While dual representation is prohibited for residential transactions, it remains permitted in certain cases, particularly in commercial or industrial transactions. These exceptions take into account 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 seller, you now have the guarantee 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. If you have specific questions regarding your situation, do not hesitate to consult Johnathan Cloutier, residential and commercial real estate broker in Laval.

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 established to enhance 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 secure environment. If this regulation piques your curiosity or raises concerns about your future real estate ventures, don't hesitate to contact a qualified broker like Johnathan Cloutier from Laval. Johnathan Cloutier will guide you with expertise in accordance with the new legal standards, providing clear and fair representation.

For more information or to get in touch, visit the website: www.johncloutier.ca or call (514) 226-4444.