A potential buyer asks a real estate broker to find a property in Québec City with very specific criteria, including a maximum budget of $450,000. The broker finds several suitable properties, but the buyer is hesitant to sign a brokerage contract. What is the legal implication if the broker proceeds to show properties without a signed 'Brokerage Contract – Buyer'?

Question: A potential buyer asks a real estate broker to find a property in Québec City with very specific criteria, including a maximum budget of $450,000. The broker finds several suitable properties, but the buyer is hesitant to sign a brokerage contract. What is the legal implication if the broker proceeds to show properties without a signed 'Brokerage Contract – Buyer'?

Answer options:

• The broker is acting as a sub-agent of the seller's broker, with all duties owed to the seller, not the buyer.
• The broker is technically acting in dual agency, which requires specific disclosures and consent from both parties.
• The broker could be found to be 'representing' the buyer through an implied mandate, which may present conflicts of interest. ✅ The broker is in violation of the Real Estate Brokerage Act for providing brokerage services without a mandatory written contract.

Correct answer: The broker is in violation of the Real Estate Brokerage Act for providing brokerage services without a mandatory written contract.

Explanation: Article 12 of the Real Estate Brokerage Act requires brokerage contracts for buying an immovable to be written, making it mandatory to sign the 'Brokerage Contract – Buyer' form.