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 permitted in 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 lease or exchange of a residential building
Why this change?
The main objective of this legislative amendment 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 can 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 only defending 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 some cases, particularly 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 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.
Conclusion
In short, the amendment to 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 consumers' 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 initiatives, do not hesitate to contact a qualified broker such as Katherine Gaucher, residential real estate broker, Bromont region, or Jonathan Choinière, residential and commercial real estate broker. These brokers will guide you with expertise in accordance with the new legal standards, offering clear and fair representation.
Contact Katherine Gaucher, email: k.gaucher@remax-quebec.com, phone: (450) 204-4413, or visit the website www.choinieregaucher.com.
Contact Jonathan Choinière, email: j.choiniere@remax-quebec.com, phone: (450) 775-4414