Maria is a broker associate in Colorado working under an employing broker. She meets a prospective buyer, Kevin, at an open house and they begin discussing Kevin's budget, preferred neighborhoods, and motivation for buying. At this point, what must Maria do regarding agency disclosure?
Correct Answer
A) Provide Kevin with a written brokerage disclosure form before continuing the conversation
Under Colorado law (C.R.S. § 12-10-403), the discussion of Kevin's budget, preferred neighborhoods, and buying motivation constitutes 'first substantive contact.' At this point, Maria must provide a written brokerage disclosure — specifically the CREC-approved Brokerage Disclosure to Buyer form — before continuing substantive discussions. Colorado requires the disclosure to be in writing.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.
A legal relationship in which one person (the agent) is authorized to act on behalf of another person (the principal) in business transactions with third parties.
The legal ending of an agency relationship, which can occur through completion, expiration, mutual agreement, breach, death, incapacity, or bankruptcy of either party.
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