Conflicts of Interest

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Scenario.

-Listing agent for a seller gets a conditional offer accepted from a buyer(Condition to selling the buyer'shouse)

-Agent goes ahead and lists that buyer's house also.

Under the current framework from OACIQ, a broker cannot represent both parties in a transaction where there is a conflict of interest

Why this situation is a conflict

If the listing broker:

• Represents the seller of the listed property

• Then the unrepresented buyer makes a conditional offer

• AND the listing takes on the listing of the buyer’s property

They are now financially and strategically tied to:

• Getting the seller the best price and terms

• Helping the buyer get their offer accepted

• Selling the buyer’s property quickly (to make the condition work)

Those interests pull in different directions, which creates a real conflict—not just a theoretical one.

What the rules require

In Quebec’s current regime:

• 
  

• The broker must identify the conflict of interest

• 
  

• They must stop representing one of the parties in the transaction

• 
  

• They generally have to choose one of these paths

• 
  

• Continue representing the seller only, and refer the buyer to another broker

• 
  

• Represent the buyer, and step away from the seller’s listing

• 
  

• Stay within the same agency, but another broker takes over one side (internal separation)

They can’t simply proceed as a dual representative in this kind of situation just with disclosure—that’s the key difference from older practices.

Important nuance

• The conditional offer itself is perfectly legal (sale of buyer’s property condition ✅)

• The issue is specifically who represents whom when the same broker tries to be involved on all sides

Bottom line

✔ The offer structure is allowed❌ The same broker handling seller + buyer + buyer’s listing = not allowed due to conflict➡️ One side must be reassigned or the broker must withdraw from part of the deal

Did you know this ?

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