Since June 10, 2022, an amendment to the Real Estate Brokerage Act has been in effect. From now on, double representation and verbal brokerage contracts will no longer be permitted in residential real estate transactions in Québec. Read this newsletter to learn more about this issue.
What is dual representation?
Since the interests of the two parties to a transaction are opposed, a residential real estate broker cannot simultaneously represent the buyer and the seller in a real estate transaction on a property and be bound by a brokerage contract to both of them.
Two real estate brokers from the same agency may each represent their client by brokerage contract. Within the same transaction, one broker may represent a seller by a sales brokerage contract and another broker from the same agency may represent a buyer by a purchase brokerage contract. These two brokers cannot exchange confidential information about their clients.
The other important change that came into effect concerns contracts. A buyer will have to sign a brokerage contract to be represented by a real estate broker. Do not hesitate to contact us if you have any questions regarding the obligations of your real estate broker.