Under Colorado law, which of the following best describes the difference between a 'seller's agent' and a 'transaction broker' with respect to disclosure obligations?
Correct Answer
A) A seller's agent owes fiduciary duties exclusively to the seller, while a transaction broker assists both parties without acting as an agent for either
Under C.R.S. § 12-10-403 and § 12-10-407, a seller's agent (single agent) owes full fiduciary duties — including loyalty, confidentiality, and advocacy — exclusively to the seller. A transaction broker, by contrast, is not an agent for either party; instead, the transaction broker assists both parties in completing the transaction, maintaining neutrality and owing a statutory (not fiduciary) duty of confidentiality and honesty to both. This distinction is fundamental to Colorado's brokerage relationship framework.
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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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