Employing broker Robert operates a brokerage in Fort Collins where some agents represent buyers as single agents and others work as transaction brokers. When a buyer, Angela, first contacts the brokerage, Robert's office policy is to default to transaction brokerage unless the buyer requests single agency. Which statement about this arrangement is accurate under Colorado law?
Correct Answer
A) This is permissible; Colorado law allows transaction brokerage as the default relationship, provided the brokerage discloses this policy to the consumer
Under C.R.S. § 12-10-403, Colorado law expressly permits transaction brokerage as the default relationship for real estate brokerages, provided the brokerage discloses this to the consumer. Brokerages may establish office policies designating transaction brokerage as the default, and consumers may request single agency if they prefer. The key requirement is disclosure of the default relationship at first substantive contact.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
A non-agency relationship where the broker facilitates a real estate transaction without representing either party, owing limited duties of honesty, fairness, and competence to both.
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