Dual Agency: Your Risks When Selling a Plex in Québec

ImmoMulti — a direct buyer of plexes and income properties on the North Shore — regularly answers seller questions about dual agency: can you deal with the same broker who also represents the buyer? The answer has changed. Since June 10, 2022, the Real Estate Brokerage Act prohibits a single broker — or a single team — from representing both the seller and the buyer of a primarily residential building with fewer than five units. That covers duplexes, triplexes and fourplexes. For the seller, this is a major protection against a conflict of interest that could prove costly. This article explains the current OACIQ rules, the concrete risks from the seller's side, and your legitimate alternatives.

What is dual agency in real estate brokerage?

Dual agency occurs when a single broker — or a single agency — holds a brokerage contract with both the seller and the buyer in the same transaction. The broker must then defend opposing interests at once: the seller wants the highest price, the buyer the lowest. According to the OACIQ, this places the broker in a conflict of interest.

Dual agency describes the situation where one and the same real estate broker acts for both parties in a transaction: the seller on one side, the buyer on the other. At first glance it can seem convenient — a single point of contact, a "simplified" deal. In reality, the seller's and buyer's interests are fundamentally opposed.

The heart of the problem is the duty of loyalty. According to the Organisme d'autoréglementation du courtage immobilier du Québec (OACIQ), every broker has an ethical obligation to protect and promote their client's interests and to place that interest ahead of their own and anyone else's. A broker simply cannot defend two clients whose objectives are mutually exclusive: negotiating the price up for the seller while negotiating it down for the buyer is logically impossible.

That is why the law regulates — and, in most residential cases, bans — this arrangement. A shared duty of loyalty translates, in practice, into limited advice: the broker must stay neutral, which deprives each party of genuine strategic guidance.

Source: OACIQ — Obligation to protect and promote the interests of the person represented.

Since when has dual agency been banned in Québec?

Since June 10, 2022, the Real Estate Brokerage Act prohibits dual agency for transactions involving a primarily residential building with fewer than five units — duplexes, triplexes, fourplexes. A single broker can no longer represent both the seller and the buyer of such a building. Verbal brokerage contracts were also banned on that date.

The amendment came into force on June 10, 2022. It introduced two major changes to protect the public: the ban on dual agency and the ban on verbal brokerage contracts in residential real estate transactions in Québec.

The scope is precise. The ban covers the purchase, sale, lease or exchange of a primarily residential building with fewer than five units. In practice, that captures nearly every small plex on the North Shore:

• Duplex (2 units) — covered by the ban;
• Triplex (3 units) — covered by the ban;
• Fourplex (4 units) — covered by the ban;
• Building of 5 units or more — the purchase brokerage contract is not mandatory and the ban does not apply the same way;
• Commercial building — not covered by the ban.

This distinction matters greatly to a plex seller. If you are selling a triplex in Terrebonne or a duplex in Blainville, your broker cannot legally also represent the buyer. For a building of five units or more, however, the legal protection is weaker — that is where a seller's vigilance must be highest.

Source: OACIQ — Prohibition of double representation (Real Estate Brokerage Act).

Why is dual agency risky for the seller?

Because a broker bound to neutrality between two clients with opposing interests can no longer fully advise the seller on price or negotiation. The seller risks leaving money on the table, receiving diminished support and doubting their representative's loyalty. This is exactly the conflict of interest the 2022 law aims to eliminate.

From the seller's point of view, dual agency posed several very real risks before the ban — and they still exist for buildings not covered by it:

• Diluted advice. A broker who also represents the buyer cannot tell you "hold firm on your price, the buyer will go higher" without betraying the other party. Their shared duty of loyalty condemns them to strategic silence.
• An unbalanced negotiation. Negotiating price, conditions and timelines is where a good broker creates value. In dual agency, they become a mere neutral facilitator — a role that rarely benefits the seller.
• Doubt about loyalty. Even in good faith, a broker collecting remuneration from both sides has an incentive to close the deal quickly, even if the price is not optimal for you.
• Unequal access to information. The broker knows both parties' room to manoeuvre. Nothing guarantees they use it to your advantage.

Source: Protégez-Vous / OACIQ — Can a broker represent both parties?

Same agency or same team: where is the line?

Two different brokers from the same agency, bound by separate brokerage contracts, may each represent one party: that is not dual agency under the law. But within a single brokerage team, the team is treated as a single entity: one member cannot represent the buyer if another member represents the seller.

The law and the OACIQ carefully distinguish two situations that look alike but carry different consequences:

In other words, if two different brokers from the same brand each work for one party under their own brokerage contract, the law considers there is no dual agency. But the OACIQ has clarified that dual agency within a team is banned just as it is for a solo broker: a team is viewed as a single entity representing a single party at a time in a transaction.

For the seller of an income property on the North Shore, the question to ask is simple: "Is the person representing the buyer part of the same team as you?" If so, there is an issue.

Source: OACIQ — Clarification of brokerage teams' ethical obligations.

What exceptions apply, and what must the broker do?

Exceptions exist, notably for certain remote, underserved regions. In addition, section 29.1 of the Real Estate Brokerage Act requires a broker who learns that their buyer client wants to make an offer on a property already covered by one of their own sale contracts to terminate the purchase contract, by written and reasoned notice.

The ban is not absolute: the OACIQ provides certain regulated exceptions. The main one concerns remote, underserved regions, where too few brokers are available. In these limited cases, a broker may be authorized to represent both parties. These exceptions do not apply to a well-served market like the North Shore of Montréal, where brokers are plentiful.

Beyond the exceptions, the law imposes an active obligation on the broker. Section 29.1 of the Real Estate Brokerage Act provides that, except for exceptions set by regulation, the licence holder must terminate the contract for the purchase when they learn their client wants to submit a proposal on a property already covered by another contract they hold for the sale, lease or exchange. This termination takes effect by sending or delivering a written, reasoned notice to the buyer client. The broker then stops representing the buyer.

For you, the seller, this means the system is designed to keep you with a loyal representative. If any doubt remains about your broker's situation, you can contact the OACIQ or a notary directly.

Source: OACIQ — Latest amendments to the Real Estate Brokerage Act.

What are your alternatives for selling your plex without a conflict of interest?

Three paths for the seller: 1) appoint a dedicated broker who represents only you, with full loyalty; 2) sell privately, directly to a buyer, without a broker or commission; 3) sell to a specialized direct buyer such as ImmoMulti, which buys plexes on the North Shore directly, with no intermediary and no conflict of interest.

Now that the framework is clear, here are the concrete options available to the owner of a plex or income property on the North Shore who wants to sell without exposure to a conflict of interest:

1. The dedicated broker

You appoint a broker who represents only you, the seller. Their duty of loyalty is complete and undivided: they can negotiate firmly on your behalf, advise you on price and decline any dual-agency situation. This is the classic route, with a commission to be negotiated in the brokerage contract.

2. The private sale

You sell directly to a buyer, without a broker on either side. No commission, no dual-agency risk — but you handle marketing, negotiation and document compliance yourself. Using a notary remains essential to secure the transaction.

3. Selling to a specialized direct buyer

You sell to a buyer purchasing for their own account, such as ImmoMulti. There is no intermediary broker, so no dual agency is possible and no commission applies. The buyer is transparent about acting in their own interest — which lets you negotiate with full knowledge, or consult your own advisor.

The right choice depends on your situation: a well-positioned plex in an active market may justify a dedicated broker; a seller who values discretion, speed and no commission will often be better served by a direct sale. To compare the two approaches concretely, read our analysis: broker vs direct buyer for selling a plex.

For any question about your specific obligations or your brokerage contract, contact the OACIQ or a notary directly. This guide covers general rules; it does not replace personalized legal advice.

The full legal framework: the Real Estate Brokerage Act and the duty of loyalty

Dual agency only makes sense in light of the broker's duty of loyalty. The Real Estate Brokerage Act and the Regulation respecting brokerage requirements oblige the broker to protect and promote the interests of the person they represent, placing that interest ahead of their own. Two clients with opposing goals make this duty impossible to honour — hence the 2022 ban for plexes with fewer than five units.

For the plex seller, understanding the legal basis of the ban helps gauge its real reach. Dual agency is not merely a discouraged practice: it collides head-on with the central pillar of Québec brokerage, the duty of loyalty. That duty is not a slogan; it is codified.

The three sources of the duty of loyalty

Three texts combine to frame the relationship between you, the seller, and your broker:

• The Real Estate Brokerage Act (REBA) — the framework statute that defines who may act as a broker, which operations are covered and what obligations bind the licence holder. It was amended on June 10, 2022 to ban dual agency in residential buildings of fewer than five units.
• The Regulation respecting brokerage requirements — it details the ethical obligations: loyalty, information, advice, verification. This is where the duty to place the client's interest ahead of the broker's own is set out.
• The OACIQ mandatory forms — brokerage contract, promise to purchase, seller's declarations: these documents translate the law into concrete practice and formally bind the broker to a single party.

The key takeaway for a North Shore plex seller: as soon as you sign an exclusive brokerage contract — sale, your broker commits to fulfilling the mandate "with loyalty, diligence and competence" and to defending your interests. A broker who also represented the buyer could not honour that commitment without betraying one of the two parties.

Why loyalty and dual agency are incompatible

Picture the same professional having to, in the same transaction:

The table shows why the legislature drew the line: there is no way to honour both columns at once. The neutrality imposed on a broker in dual agency is not a balanced compromise — it is an abdication of advice. And for the seller, the absence of advice at the most sensitive moment (the negotiation) often costs tens of thousands of dollars on a plex.

Source: OACIQ — The exclusive brokerage contract (sale); OACIQ — Obligation to protect and promote the interests of the person represented.

What dual agency can cost: worked examples

Neutral advice instead of loyal advice rarely helps the seller. On a North Shore triplex sold around $750,000, a poorly defended negotiation margin of 3 to 5% means $22,500 to $37,500 left on the table. The example below illustrates the gap — for teaching purposes, not as a promise of results.

The figures that follow are illustrations meant to make an abstract risk concrete. They do not predict your sale: every plex, market and negotiation is unique. Consult a dedicated broker or a chartered appraiser for an estimate specific to your building.

Scenario 1: the triplex in Terrebonne

Take a triplex listed at $750,000. Two configurations:

The $30,000 gap is not guaranteed — but it illustrates the mechanism: without an advocate who knows the true margin, the seller gives ground more easily. On an income property, a price drop also flows through to capitalized value: at a 5% overall capitalization rate, $30,000 less equals roughly $1,500 of net operating income "lost" in the market's eyes.

Scenario 2: the duplex in Blainville

On a more modest duplex at $520,000, the stake often shifts to the conditions rather than price alone: possession date, inclusions, repairs demanded after inspection. A loyal broker negotiates each item in your favour; a neutral intermediary lets these points "balance out" — often to the seller's detriment, who accepts an $8,000 reduction for work an advocate would have contested.

The common thread of these examples: a good representative's value shows most in moments of tension. That is exactly where dual agency leaves you alone.

Illustrative figures. For an estimate specific to your building, consult a dedicated broker or a chartered appraiser.

How to verify, step by step, that there is no dual agency

Before and during the sale of your plex, six simple checks rule out any dual-agency risk: read your brokerage contract, verify the link between the brokers, ask the question directly, demand the section 29.1 termination if a doubt arises, document in writing, and consult the OACIQ at the slightest doubt.

The law protects you, but vigilance remains your best ally. Here is a concrete procedure to follow, from first contact to signing at the notary's.

Step 1 — Read your brokerage contract

Your exclusive brokerage contract — sale clearly identifies the agency and broker who represent you. That is the starting point: it establishes the loyalty link toward you, the seller. Note the broker's name and their agency.

Step 2 — Identify who represents the buyer

When an offer arrives, ask who represents the buyer. Three cases:

Step 3 — Ask the team question

Remember the key distinction: two brokers from the same agency, yes; two members of the same team, no. Ask explicitly: "Is the person representing the buyer part of your brokerage team?"

Step 4 — Document in writing

If a doubt arises, request confirmations in writing. Where a purchase contract is terminated under section 29.1, the law requires a written, reasoned notice to the buyer: you are entitled to know it exists.

Step 5 — Consult the OACIQ or a notary

At the slightest doubt, the OACIQ's assistance service and your instrumenting notary are your resources. The notary, bound to impartiality, verifies the transaction's compliance before the deed of sale is signed.

Source: OACIQ — Declarations and obligations of the buyer.

Special cases: five units and up, commercial, undivided co-ownership and selling to a relative

The ban targets primarily residential buildings with fewer than five units. Beyond that — buildings of 5 units or more, commercial, mixed-use — legal protection is weaker and the seller's vigilance becomes decisive. Undivided co-ownership and sales to a relative also carry nuances worth knowing.

The basic rule is clear, but income properties come in many forms. Here is how the ban applies — or not — depending on your property type.

The five-unit threshold: a decisive line

Everything hinges on the number five. Below it (2, 3 or 4 units), the dual-agency ban applies fully and the purchase brokerage contract is regulated. From five units up, the regime changes:

For the seller of a building of five units or more on the North Shore, the lesson is simple: do not assume automatic protection. If you are selling a 6-plex or an 8-plex, contractually require a representative who defends only you, or consider a direct sale to eliminate any intermediary from the outset.

Undivided co-ownership (a building held by several owners)

A plex held in undivided co-ownership by several owners adds a layer: each co-owner has their own interests. The seller's declaration form (DV) remains mandatory for a residential building of fewer than five units or held in undivided co-ownership, and the broker must ensure all sellers are duly represented. Dual agency remains banned in this residential context.

Selling to a relative or a tenant

Selling to a family member, a business partner or a sitting tenant does not exempt you from the rules. If a broker is involved on both sides of a plex of fewer than five units, the ban applies in full, whatever the link between the parties. Conversely, a private sale between relatives, with no broker at all, naturally escapes the dual-agency question — but using a notary remains essential to secure the deed.

Source: OACIQ — Mandatory forms and statements.

Common plex-seller mistakes — and how to avoid them

Plex sellers often fall into the same traps: believing dual agency "saves time," confusing agency and team, accepting a fast price over the best price, neglecting the seller's declaration form, or giving up a loyal representative to "save" a commission. Each one is easy to correct.

After observing many files, a recurring set of mistakes emerges. Here are the costliest, with the reflex to adopt.

Mistake 1 — "One broker is simpler"

The apparent simplicity hides the loss of advice. For a plex of fewer than five units, it is banned anyway. Reflex: always favour a dedicated representative, or remove the intermediary through a direct sale.

Mistake 2 — Confusing "same agency" with "same team"

Many sellers think two brokers from the same brand are automatically in conflict. Wrong: two distinct brokers with separate contracts are allowed. It is the team (single entity) that is the problem. Reflex: ask about the team link, not just the agency.

Mistake 3 — Chasing speed over value

"Sold in 48 hours" is only a success if the net price is there. Reflex: always compare net prices (after commission and fees), and set your floor before the first offer.

Mistake 4 — Neglecting the seller's declaration form

The DV form is mandatory for a residential plex of fewer than five units. Filling it out carefully protects the seller against later claims, and the broker is required to be proactive about known unfavourable factors. Reflex: declare everything you know, in writing.

Mistake 5 — Giving up an advocate to "save" a commission

Saving 3% commission by accepting dual agency (where it would be allowed) can cost far more in sale price. Reflex: if you truly want to eliminate the commission, do it cleanly — a private sale or a sale to a direct buyer — not by sacrificing your representative loyalty.

Source: OACIQ — Mandatory forms to prevent problems.

The notary's role and negotiating without a conflict of interest

The notary, bound to impartiality, verifies the transaction's compliance before the deed of sale — but they are not your negotiator. It is upstream, when setting price and conditions, that the absence of dual agency matters most. A loyal representative (or a transparent direct sale) protects your position where the notary cannot step in.

Many sellers assume the notary will "catch" any problem. That is a useful confusion to dispel, because it changes how you approach the dual-agency question.

What the notary does — and does not do

The notary is an essential link, but impartial by nature. That impartiality is precisely what distinguishes them from a loyal representative: they do not take sides. That is why the dual-agency question is decided well before the notarial stage — at the point where price and conditions are set.

Negotiating without a conflict of interest: the three paths revisited

Let us revisit the alternatives through the lens of negotiation, the crux for a plex seller:

• Dedicated broker — you delegate the negotiation to a professional who defends only you. Ideal in a competitive market where price is actively contested.
• Private sale — you negotiate yourself, directly. You keep full control and avoid any commission, but you carry the strategic load alone. A notary then secures the deed.
• Specialized direct buyer — you negotiate with a transparent buyer (such as ImmoMulti) acting openly for their own account. No intermediary, no ambiguity about who represents whom: you know exactly who you are talking to, and you stay free to have the offer validated by your own advisor.

In each of these paths there is no dual agency possible: either you have an exclusive advocate, or you negotiate directly with a clearly identified party. It is the exact opposite of the arrangement the law banned in 2022 for plexes of fewer than five units.

For the seller of an income property on the North Shore, the practical conclusion fits in one sentence: make sure, at every step, that you know who is defending your interests. If the answer is "no one, everyone is neutral," you are exactly in the zone the dual-agency ban is meant to eliminate.

Source: OACIQ — Exclusive brokerage contract (sale).