Thank you, Mr. Speaker. Buying your first home, or buying a home in general, will no doubt be the most expensive purchase you make in your lifetime. Many of us use the services of a real estate agent or broker, but because of the uniqueness of the North, and sometimes the limited number of agents available, it would be deemed reasonable for buyers or sellers to often be confused of the role of the real estate agent.

Who does the agent represent, the buyer or the seller? In some cases the agent would represent both and this is what we call dual agency.

Our Real Estate Agents’ Licensing Act came into force in 1991 and it provides the basic governance for real estate agents in the Northwest Territories and, in my humble opinion, has not kept pace with the developments in real estate practices. In my analysis, this act does not contain some of the basic provisions found in real estate law in other jurisdictions that respond to increasing trends in real estate practice in Canada.

More importantly, the dealing of dual agency concerns and the protection of owners and sellers under the right of representation disclaimers is entirely missing from the act.

The issue of dual agency can be a problematic practice. That is, how can a real estate agent advise and negotiate two parties in the same deal? Or how can an agent have two masters? This is a valid conflict of interest situation for sure, yet the middle ground to finding resolve within this dilemma can be as simple as the consumer being fully informed, hence the representation disclaimer.

This simple fix within the legislation can allow both clients the understanding and the appreciation of what they might be losing and what they might be gaining by adopting a dual agency environment. In legal terms, dual agents should not operate in a fiduciary relationship with either party, and must treat both buyers and sellers equally. They cannot share confidential information and they must not give confidential advice.

It is evident that we need to look a bit more closely at the Real Estate Agents’ Licensing Act so that these potential risks that are created by gaps in legislation can be dealt with in this changing environment.

I will have questions later today for the Minister of Municipal and Community Affairs who is responsible for this act. Thank you, Mr. Speaker.