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 courtier represent both a buyer and a seller in a real estate transaction?

When it comes to real estate transactions, the question of whether an courtier 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 various 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 primary objective of this legislative change is to protect consumers and ensure fair and conflict-free representation in real estate transactions. Here are the main advantages:

• Avoiding conflicts of interest: An courtier representing both the buyer and the seller can find themselves in a delicate situation where the interests of both parties are not aligned.
• Enhancing client trust: Consumers can now be sure that their courtier is solely advocating for their interests in a transaction.
• Improving 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 permissible 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 are now assured that your courtier focuses solely on your needs and success in the transaction. For courtiers, 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 significant advancement for the residential real estate market in Quebec. It was introduced to strengthen the industry's ethics and transparency of transaction processes, ensuring that consumers' 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 your residential real estate courtier, like David St-Germain involved in the regions of Sainte-Marthe-sur-le-lac, Blainville, and St-Jérôme. He will know how to guide you with expertise in accordance with the new legal standards, thus offering clear and fair representation.

For any questions, contact David St-Germain via his website or by phone.

Website: www.davidst-germain.com
Phone: (450) 821-7977