Working Relationships in Colorado

In Colorado, a Broker must, by law, disclose the nature of your working relationship, and also tell you of the options available to you as the consumer.  Here are the definitions of working relationships in Colorado.

Seller’s Agent *:  A  seller’s agent works  solely on behalf of the seller  and owes duties to the seller , which include the utmost good faith, loyalty and fidelity.  The agent will negotiate on behalf of and act as an advocate for the seller.  The agent must disclose to potential buyers or tenants all adverse material facts about the property actually known by the broker.  A separate written listing agreement is required which sets forth the duties and obligations of the broker and the client.

Buyer’s Agent*: A buyer’s agent works solely on behalf of the buyer and owes duties to the buyer which include the utmost good faith, loyalty, and fidelity.  The agent will negotiate on behalf of and act as an advocate for the buyer.  The agent must disclose to potential sellers all adverse material facts concerning the buyer’s financial ability to perform the terms of the transaction and 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 client.

Transaction-Broker*: A transaction -broker assists the buyer or seller or both throughout a real estate transaction with communication, advice, negotiation, contracting and closing 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 also make the same disclosures as agents about adverse material facts concerning a property or a buyer’s financial ability to perform the terms of a transaction and 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.

Client:  A client is a party to a real estate transaction with whom the broker has a brokerage relationship because such party has engaged or employed the broker as either an agent or as a transaction-broker.

*For purposes of these definitions, buyer also means “tenant” and seller also means “landlord”.

 Please contact the Get Home Denver Team for further explanations of these important terms!