Broker Marcus at Alpine Realty has a signed seller agency agreement with seller Diana. Buyer Steve, who is also a client of Alpine Realty working with broker Jenna, wants to purchase Diana's property. The employing broker designates Marcus to represent Diana and Jenna to represent Steve. Diana later objects, stating she does not want designated agency and insists on having Marcus as her exclusive single agent with no in-house buyer representation. Under Colorado law, what should the employing broker do?
Correct Answer
D) Refer Steve to an outside brokerage to honor Diana's single agency preference with Marcus.
Under Colorado brokerage relationship law (C.R.S. § 12-10-401 et seq.), clients have the right to consent to or refuse certain agency arrangements. If Diana insists on exclusive single agency with Marcus and refuses to consent to designated agency or any in-house buyer representation, the employing broker must respect her contractual and agency rights. The appropriate resolution is to refer Steve to an outside brokerage so that Marcus can continue to serve Diana as her exclusive single agent without any conflict.
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Related Topics & Key Terms
Key Terms:
Related Concepts
In real estate, a client is someone to whom the agent owes fiduciary duties through an agency relationship, while a customer is a third party to whom the agent owes only honesty and fair dealing.
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.
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