Colorado broker Nora is approached by a homeowner who wants to list his property for sale. Before they sign any agreement, Nora begins showing the homeowner comparable sales and discussing a pricing strategy. At this stage, prior to any written agreement, what is Nora's brokerage relationship with the homeowner under Colorado law?
Correct Answer
B) Nora is a transaction broker by default because no written agency agreement has been signed.
Under C.R.S. § 12-10-401 et seq., transaction brokerage is the default brokerage relationship in Colorado when a licensee provides real estate services without a written agency agreement. Even before a listing agreement is signed, Nora's provision of comparable sales data and pricing advice creates a brokerage relationship, and that relationship defaults to transaction brokerage.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.
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.
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