François Chicoine, real estate brokers for multiple units in Montreal
Buyer Contract
End of dual representation
The Minister of Finance proposed amendments to the Real Estate Brokerage Act (REBA) with Bill 5 in order to strengthen consumer protection by prohibiting dual representation and verbal brokerage contracts in residential brokerage in Quebec.
Like the regulator in British Columbia, Quebec prohibits real estate brokers from representing both parties to a real estate transaction at the same time and from being bound by a brokerage contract with each of them.
A real estate broker must now represent only one party to the transaction, either the buyer or the seller.
A real estate broker's main obligation is to promote and protect the interests of their clients and to act loyally toward them. They must ensure that they do not disclose their clients' confidential and strategic information.
Also, every client has the right to objective and independent advice from their real estate broker.
The mandatory buyer brokerage contract
Since June 10, 2022, a buyer brokerage contract is mandatory in Quebec between the buyer and the broker representing them. Verbal contracts are no longer valid.
To represent the buyer, that is, to defend their interests, advise them according to their needs and criteria, and negotiate the terms of an offer to purchase on their behalf, the broker must have signed a buyer brokerage contract (BBC) with their buyer client.
The new law applies only to residential transactions, namely:
- Part or all of a mainly residential building with fewer than 5 units
- A unit in a mainly residential building held in divided or undivided co-ownership
- A residential lot
With a buyer brokerage contract,
you can benefit from dedicated services:
- Advice and recommendations
- Personalized property searches
- Access to sold comparables
- Drafting of the offer to purchase and negotiations
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