Colorado broker Sandra is working with buyer couple Tom and Linda to find a home. Sandra has not signed a written buyer agency agreement with them. Under Colorado brokerage relationship law, what is Sandra's default agency status when assisting Tom and Linda?
Correct Answer
B) Sandra is a transaction broker by default unless a written agency agreement is signed.
Under C.R.S. § 12-10-401 et seq., transaction brokerage is the default brokerage relationship in Colorado when a licensee assists a buyer or seller without a written agency agreement establishing a different relationship. Sandra assists Tom and Linda as a transaction broker, meaning she facilitates the transaction but does not act as their advocate or owe them full fiduciary duties.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
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