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Real Estate Talk: How listing
brokers work with buyers

A discussion of the listing broker’s obligations towards unrepresented buyers

By Joseph Marovitch

September 12, 2024

Last week I discussed the rules between a selling broker and the unrepresented buyer. We cannot provide that information without discussing the listing broker’s obligation with unrepresented buyers.

As mentioned earlier, new laws state that the listing broker is not permitted to represent both the seller and the buyer due to a conflict of interest. If the listing broker is working for and being paid by the seller, and the higher the sale price, the more commission the listing broker receives, the listing broker can influence the buyer to pay more which is in favour of the listing broker and his seller.

Under the new laws, as stated in the Real Estate Brokerage Act, which is part of the Quebec civil code and applies to all residential real estate transactions, if the broker is representing the buyer, the broker cannot provide any information to the buyer. However, under certain conditions, the listing broker can prepare an offer, but again, provides no information.

As mentioned earlier, new laws state that the listing broker is not permitted to represent both the seller and the buyer due to a conflict of interest.

To apply these rules, there are obligations the listing broker must apply:

  1. If a buyer walks into an open house before a tour or information is provided the listing broker must ask the buyer if they are represented and by whom if the selling broker did not already call the listing broker ahead of time and state their client will be visiting.
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  2. If the buyer states they are not represented, the listing broker must offer them a chance to acquire a broker to represent them.
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  3. If the buyer states they do not wish to acquire a selling broker to represent them, the listing broker must have the buyer sign a document stating they were offered representation and they refused.
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  4. The listing broker must then state they will provide fair treatment but be clear that they represent their client the seller only and that the extent of their provision to the buyer would only be to write an offer as the buyer instructs. If the buyer asks whether the price is fair or what conditions should be in the offer, the listing broker cannot provide that information.

It is advisable to always have a broker representing the buyer. Brokers are trained and experienced in negotiation, laws, conditions, issues they see in homes, and resale value and they keep negotiations civil and fair. If either buyer or seller is represented by a professional then the other party should have professional representation. If a person believes they know a little of everything they are not an expert in anything. To be unrepresented while the other is professionally represented is like going to court to defend yourself or performing a medical procedure on yourself when you are actually a teacher of economics or a dentist.

‘It is advisable to always have a broker representing the buyer. Brokers are trained and experienced in negotiation, laws, conditions, issues they see in homes, and resale value and they keep negotiations civil and fair.’

Should you have questions or comments, please refer to the comments section at the bottom of the page. As well, to view past articles, click here.

Next article: A window of opportunities for buyers


State of the market

I once received a contact from a reader who told me they read my column each week and enjoyed it, which I appreciated. However, when politics was placed in the State of the Market, the person requested I write about what I know and not stray from real estate. The problem is that politics, whether national or international, directly affect our real estate market and economy.

‘… following the U.S. presidential debate, I would venture to guess that there is a very good chance, but not for certain, that the Canadian housing market and our economy will improve.’

Wars affect our market by slowing the supply chain of goods and services. Our neighbour’s economic policies also can severely affect our market. Therefore, we cannot turn a blind eye to the state of affairs around us. As such, following the U.S. presidential debate, I would venture to guess that there is a very good chance, but not for certain, that the Canadian housing market and our economy will improve. Money goes where the economy is stable. We all need stability, not conflict, divisiveness, daily drama and policies that could be disastrous.

Have a great week.


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Other articles by Joseph Marovitch


Joseph Marovitch - WestmountMag.ca

Joseph Marovitch has worked in the service industry for over 30 years. His first career was working with families from Westmount and surrounding areas, hosting children between the ages of 6 to 16 as the owner and director of Camp Maromac, a sports and arts sleep away summer camp established in 1968. Using the same strengths caring for the families, such as reliability, integrity, honesty and a deep sense of protecting the interests of those he is responsible for, Joseph applies this to his present real estate broker career. Should you have questions please feel free to contact Joseph Marovitch at 514 825-8771, or josephmarovitch@gmail.com



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