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 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 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 goal of this legislative change is to protect consumers and ensure fair representation without conflicts of interest in real estate transactions. Here are the main benefits:

• Avoid conflicts of interest: A broker representing both the buyer and the seller may find themselves in a tricky 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. It is therefore essential to consult professionals like Marie-Eve Dufresne, a residential and commercial real estate broker for Saint-Sulpice, L'Assomption, Repentigny, and Lavaltrie, who will meet your expectations.
• 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, including 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 assurance that your broker is focusing solely on your needs and your 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 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 industry's ethics and the transparency of transaction processes, ensuring that consumers' interests are always prioritized. This means that market players can operate in a more balanced and safe environment. If this regulation piques your curiosity or concern regarding your future real estate initiatives, do not hesitate to consult Marie-Eve Dufresne, your residential and commercial real estate broker for Saint-Sulpice, L'Assomption, Repentigny, and Lavaltrie. She will guide you with expertise compliant with the new legal standards, offering clear and fair representation.

For more information, visit the site www.marie-eveavendu.com or call (514) 679-0810.