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 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 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:

• Avoid conflicts of interest: A broker representing both the buyer and the seller might end up in a delicate situation where the interests of both parties are not aligned.
• Strengthen client trust: Consumers can now be certain that their broker solely advocates for their interests in a transaction.
• Improve transparency: By avoiding dual representation, the rules become clearer for all involved parties.

Possible exceptions

Although dual representation is prohibited for residential transactions, it remains allowed in certain cases, notably 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 focuses only 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. For any questions or clarification, do not hesitate to consult Shawn Gauthier, residential real estate broker in Saint-Hyacinthe and surrounding areas.

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 introduced to strengthen market ethics and transaction process transparency, ensuring that consumer interests are always prioritized. This means that market players can operate in a more balanced and safe environment. If this regulation raises curiosity or concern regarding your future real estate initiatives, do not hesitate to contact a qualified broker. Shawn Gauthier, residential real estate broker in Saint-Hyacinthe and surrounding areas, will guide you with expertise complying with new legal standards, thus offering clear and fair representation.

For more information, visit the website of Shawn Gauthier: https://www.shawngauthier.ca/ or contact him directly at (450) 518-1028.