Colorado broker Tina is assisting seller Bob as a transaction broker. Bob asks Tina whether she thinks the asking price of $420,000 is too high for the current market. Under Colorado transaction brokerage duties, what is the most appropriate response from Tina?
Correct Answer
B) Tina should provide her honest professional opinion because she owes reasonable skill and care to the parties.
Under C.R.S. § 12-10-401 et seq., transaction brokers owe the duty to exercise reasonable skill and care in performing brokerage services. Providing a professional market opinion on pricing is within the scope of competent brokerage services. Tina should give her honest professional assessment based on market data. This is distinct from advocacy — she is providing competent professional service, not promoting Bob's interests over the buyer's.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The fiduciary obligations owed by a listing agent to the seller, including marketing the property, presenting all offers, and protecting the seller's confidential information.
A practice where the agent or brokerage represents only one party in a transaction — either the buyer or the seller, but never both.
A relationship where a listing broker authorizes other brokers to act as agents of the seller, extending the seller's agency relationship to cooperating brokers.
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