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 in certain circumstances. But are you aware of the current regulations?

The answer: False

Since June 10, 2022, the regulations surrounding dual representation have significantly changed. 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 residential property
• The sale of residential property
• The lease or exchange of a residential building

Why this change?

The primary goal 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: A broker representing both the buyer and the seller can find themselves in a challenging situation where the interests of both parties do not align.
• Strengthening client trust: Consumers can now be assured that their broker solely defends their interests in a transaction.
• Improving transparency: By avoiding dual representation, the rules become clearer for all parties involved.

Possible exceptions

While dual representation is prohibited for residential transactions, it remains allowed in certain cases, particularly in commercial or industrial transactions. These exceptions take into account the 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 a seller, you now have the assurance that your broker focuses solely on your needs and success in the transaction. For brokers, this new regulation requires increased adaptation and vigilance in order to comply with these new legal requirements. Maggie Sauvageau-Dumont, residential and commercial real estate broker for Drummondville and its surroundings is well-informed about these new regulations and will ensure that your interests remain a priority.

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 established in order to strengthen ethics in the field and the 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 qualified broker, Maggie Sauvageau-Dumont, residential and commercial real estate broker for Drummondville and its surroundings. She will guide you with expertise according to the new legal standards, offering clear and fair representation.

For more information or to discuss your real estate projects, visit www.maggiesauvageau.com or contact directly at (819) 818-9640.