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 often arises whether a broker can represent both the buyer and the seller. This practice, known as dual agency, has long been allowed in 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 was amended to prohibit dual agency 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 rental or exchange of a residential building

Why this change?

The main objective 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:

• Avoiding conflicts of interest: A broker representing both the buyer and the seller may find themselves in a difficult situation where the interests of the parties are not aligned.
• Strengthening client confidence: Consumers can now be certain that their broker is defending only their interests in a transaction.
• Improving 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, particularly in commercial or industrial transactions. These exceptions take into account 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 are now assured 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 summary, the amendment to the Real Estate Brokerage Act represents a major advancement for the residential real estate market in Quebec. It was implemented to enhance the ethics of the sector as well as 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, like Samuel Thériault, who operates in Victoriaville and its surroundings. He will guide you with expertise in accordance with the new legal standards, offering clear and fair representation. 

For more information, you can visit Samuel Thériault's website at www.samueltheriault.com or contact him by phone at (819) 412-0305.