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 agency, has long been allowed under certain circumstances. But are you aware of 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 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 primary goal 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:

• 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 is solely advocating for their interests in a transaction.
• Improve 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 allowed in certain cases, notably in commercial or industrial transactions. These exceptions take into account the different market realities and transaction contexts, 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 short, the amendment to the Real Estate Brokerage Act represents a major step forward for the residential real estate market in Quebec. It was introduced to strengthen ethics within 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 sparks curiosity or concern regarding your future real estate endeavors, do not hesitate to contact a qualified broker. Emmanuel Paquin Team in Montreal, with expertise as a residential and commercial real estate broker in the Montreal and Kirkland areas, will guide you with expertise in accordance with the new legal standards, offering clear and fair representation.

For more information, visit our website: https://emmanuelpaquin.com/ or call (514) 757-6268.