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 “double representation,” has long been allowed under certain circumstances. But do you know the current regulations?

The answer: False

Since June 10, 2022, the regulations surrounding double representation have changed significantly. The Real Estate Brokerage Act was amended to prohibit double representation in residential transactions. This ban 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 advantages:

• Avoiding conflicts of interest: A broker representing both a buyer and a seller may find themselves in a delicate situation where the interests of both parties are not aligned.
• Strengthening client trust: Consumers can now be certain that their broker solely defends their interests in a transaction.
• Improving transparency: By avoiding double representation, rules become clearer for all parties involved.

Possible exceptions

Although double representation is prohibited for residential transactions, it remains allowed in some cases, notably in commercial or industrial transactions. These exceptions consider the different realities of the market and the context of the transaction, where, for example, in the commercial sector, negotiation dynamics are often less personal and more centered on economic considerations.

What this means for you

If you are a buyer or 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 to comply with these new legal requirements. For personalized advice in this new era of real estate brokerage, feel free to consult Frederic Cornu, residential and commercial real estate broker for the Montreal and North Shore region.

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 enhance industry 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 safe environment. If this regulation raises curiosity or concern about your future real estate initiatives, feel free to consult your qualified broker. Contact Frederic Cornu, residential and commercial real estate broker for Montreal and North Shore, who will guide you with expertise in line with the new legal standards, offering clear and fair representation.

For more information, visit fredericcornu.com or call (514) 894-0101.