UNDERSTANDING REAL ESTATE
BROKERAGE RELATIONSHIPS IN COLORADO
When buying or selling real estate, you may decide to hire a real estate
broker to assist you. At the time you begin a serious discussion of your
real estate needs with a Colorado real estate broker, the broker should
discuss brokerage services with you. The broker is required to advise you
of the type of services the brokerage is going to provide. Colorado Law
recognizes these services as the brokerage relationship.
DIFFERENT
BROKERAGE RELATIONSHIPS ARE AVAILABLE WHICH INCLUDE SELLER AGENCY, BUYER
AGENCY OR TRANSACTION-BROKERAGE.
DEFINITIONS OF WORKING
RELATIONSHIPS
Approved by the Colorado Real Estate Commission. -
DD 25-5-04
For purposes of this
disclosure, seller also means "landlord" and
buyer also means "tenant".
Seller's Agent: A
seller's agent (or listing agent) works solely on behalf of the seller to
promote the interests of the seller with the utmost good faith, loyalty
and fidelity. The agent negotiates on behalf of and acts as an advocate
for the seller. The seller's agent must disclose to potential buyers all
adverse material facts actually known by the seller's agent about the
property. A separate written listing agreement is required which sets
forth the duties and obligations of the broker and the seller.
Buyer's Agent: A
buyer's agent works solely on behalf of the buyer to promote the interests
of the buyer with the utmost good faith, loyalty and fidelity. The agent
negotiates on behalf of and acts as an advocate for the buyer. The buyer's
agent must disclose to potential sellers all adverse material facts
actually known by the buyer's agent including the buyer's financial
ability to perform the terms of the transaction and if a residential
property, whether the buyer intends to occupy the property. A separate
written buyer agency agreement is required which sets forth the duties and
obligations of the broker and the buyer.
Transaction-Broker: A
transaction-broker assists the buyer or seller or both throughout a real
estate transaction by performing terms of any written or oral agreement,
fully informing the parties, presenting all offers and assisting the
parties with any contracts, including the closing of the transaction
without being an agent or advocate for any of the parties. A
transaction-broker must use reasonable skill and care in the performance
of any oral or written agreement, and must make the same disclosures as
agents about all adverse material facts actually known by the
transaction-broker concerning a property or a buyer's financial ability to
perform the terms of a transaction and if a residential property, whether
the buyer intends to occupy the property. No written agreement is
required.
Customer: A customer is a party to a real estate transaction with whom the
broker has no brokerage relationship because such party has not engaged or
employed the broker, either as the party's agent or as the party's
transaction-broker.
Do you have to hire an agent if
you just want to see a property?
Absolutely not. Any licensed real estate agent can show a property to you. However, you will be asked
to sign a disclosure document which says that the licensee has explained
Colorado Brokerage Relationship law to you (see above). If you eventually decide to
hire the agent, you will have to sign a contract which obligates you to use
that person's services exclusively for a specific period of time.
If you have any questions
regarding Brokerage Relationships, please call me at 303-520-3179.
