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 allowed under certain circumstances. But do you know the current regulations?

The answer: False

Since June 10, 2022, the regulations surrounding dual agency have changed significantly. The Real Estate Brokerage Act has been 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 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 difficult situation where the interests of both parties are not aligned.
• Strengthen client trust: Consumers can now be sure that their broker is defending only 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 permissible in certain cases, notably in commercial or industrial transactions. These exceptions take into account the different market realities and 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 is focusing 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 to 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 industry and the transparency of transaction processes, ensuring that consumers' interests are always prioritized. This means that market players can evolve in a more balanced and safe environment. If this regulation raises any curiosity or concern regarding your future real estate initiatives, do not hesitate to consult your residential real estate broker in Montérégie, Richard Michel on the South Shore of Montreal. He will guide you with expertise in compliance with the new legal standards, thus offering clear and fair representation.

For more information or for a consultation, please visit richardmichelcourtier.ca or call (438) 507-9564.