A Colorado listing broker, Sandra, is showing her listed property to an unrepresented buyer, Tom. Tom asks Sandra directly, 'Are you representing the seller or me?' Which statement best describes Sandra's disclosure obligation in this situation?
Correct Answer
A) Sandra must disclose that she represents the seller and that Tom may wish to seek his own representation
Under C.R.S. § 12-10-403, Sandra, as the listing broker, represents the seller. When an unrepresented buyer directly asks about representation, Sandra must clearly disclose that she represents the seller's interests. She should also inform Tom that he may seek his own buyer's agent representation. Colorado law requires honest and timely disclosure of the agency relationship to avoid confusion or misrepresentation.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
The fiduciary obligation to protect a client's private information and not disclose it to third parties without permission, surviving even after the agency relationship ends.
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