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 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 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 goal of this legislative modification 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 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 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, notably in commercial or industrial transactions. These exceptions consider the different market realities and the context of the transaction, where, for example, in the commercial sector, the 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 solely focused on your needs and success in the transaction. For brokers, this new regulation requires greater adaptation and vigilance to comply with these new legal requirements. For tailored and professional advice, turning to Sacha Loyer, a real estate broker in Laval, can be a valuable asset.

Conclusion

In summary, the modification of the Real Estate Brokerage Act represents a major advancement for the residential real estate market in Quebec. It was introduced to strengthen the ethics of the sector 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 raises curiosity or concern regarding your future real estate initiatives, do not hesitate to contact a qualified broker such as Sacha Loyer, a real estate broker in Laval. They will guide you with expertise in compliance with the new legal standards, offering clear and fair representation.

For more information, visit www.sachaloyerimmobilier.ca or call (514) 792-0507.