Broker Greg is an independent broker in Colorado who has been working with buyer clients, the Petersons, for three months. During this time, Greg has been acting as a transaction broker. The Petersons now ask Greg to switch to a single agency (buyer's agent) relationship before they make an offer on a property. Greg agrees. Which of the following statements is most accurate regarding this change in Colorado?
Correct Answer
A) The change to single agency is permissible, but Greg must provide a new written disclosure to the Petersons reflecting the change to a buyer's agent relationship
Under C.R.S. § 12-10-403, brokerage relationships in Colorado can be changed by mutual agreement of the parties. When the relationship changes from transaction brokerage to single agency (buyer's agent), Greg must provide a new written disclosure to the Petersons that reflects the new nature of the relationship — specifically, that Greg now owes them fiduciary duties as their single agent. Colorado's disclosure requirements apply to the current nature of the relationship, and a change in relationship type triggers a new disclosure obligation.
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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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