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 agency, has long been permitted under certain circumstances. But do you know the current regulations?

The answer: False

Since June 10, 2022, the regulations surrounding dual agency have significantly changed. 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 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 benefits:

• 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.
• Enhance customer trust: Consumers can now be certain that their broker is only defending 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 permitted in certain cases, particularly in commercial or industrial transactions. These exceptions account for the 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 assurance that your broker focuses 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 of the Real Estate Brokerage Act represents a major advancement for the residential real estate market in Quebec. It was introduced to enhance the ethics of the field and the transparency of transaction processes, ensuring that consumers' interests are always prioritized. This means that market participants can operate in a more balanced and secure environment. If this regulation sparks curiosity or concern regarding your future real estate initiatives, don't hesitate to contact a qualified broker such as Jean-Chrystophe Diotte, residential and commercial real estate broker, Mascouche, Terrebonne, and Repentigny or Alexandre Jean, residential real estate broker, Mascouche, Terrebonne, and Repentigny. They will guide you with expertise in accordance with the new legal standards, providing clear and fair representation.

For more information, visit www.equipejeandiotte.com or call (438) 923-4207.