James is a Colorado licensed broker who is representing the seller in a residential transaction. The buyer is unrepresented and asks James to assist with preparing the offer. James agrees to help both parties without representing either one as an advocate. Which agency relationship is James performing?
Correct Answer
C) Transaction brokerage
In Colorado, a transaction broker assists one or both parties in a transaction without acting as an advocate or agent for either party. Under Colorado's brokerage relationship statutes (C.R.S. § 12-10-401 et seq.), transaction brokerage is the default relationship when a licensee assists parties without a written agency agreement. James is facilitating the transaction for both parties without fiduciary loyalty to either.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An arrangement where a brokerage assigns separate agents within the firm to represent the buyer and seller in the same transaction, allowing each client to have dedicated representation.
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
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