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 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 significantly changed. The Real Estate Brokerage Act has been amended to prohibit dual representation in residential transactions. This ban 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 advantages:

• 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.
• Strengthen client trust: Consumers can now be certain that their broker only defends 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 it means for you

If you are a buyer or seller, you are now guaranteed that your broker focuses solely on your needs and success in the transaction. For brokers, this new regulation requires increased adaptation and vigilance to meet these new legal requirements.

Conclusion

In short, the amendment of the Real Estate Brokerage Act represents a major advancement for the residential real estate market in Quebec. It was established to strengthen the ethics of the industry 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 raises curiosity or concern regarding your future real estate initiatives, do not hesitate to contact your residential real estate broker, Jason Gagnon, who serves the regions of Cap-Rouge and Saint-Augustin-de-Desmaures. He will guide you with expertise compliant with the new legal standards, offering clear and fair representation.

For more information, visit the site www.jasongagnon.ca or contact Jason Gagnon at (418) 522-8831.