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 are you aware of the current regulation?
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 main goal of this legislative amendment 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 assured that their broker is solely defending their interests in a transaction.
- Improve 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 realities of the market and the context of the transaction, where, for instance, 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 is focused solely on your needs and your success in the transaction. For brokers, 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 major advancement for the residential real estate market in Quebec. It was introduced to enhance the industry's ethics 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 consult Frédéric Corbi, real estate broker - Montreal. He will guide you with expertise in line with the new legal standards, offering clear and fair representation.
Contact Frédéric Corbi, real estate broker - Montreal via his website: www.fcorbi.com or by phone at (514) 618-6187.
