Broker Lisa has a signed buyer agency agreement with the Thompsons, who are searching for a home in Colorado Springs. Lisa's firm also holds the listing for a property the Thompsons want to purchase. Lisa's employing broker wants to convert the relationship to transaction brokerage for this in-house deal. Under Colorado law, what must occur before the relationship can be changed?
Correct Answer
D) The Thompsons must be notified in writing and consent to the change in brokerage relationship
Under Colorado law (C.R.S. § 12-10-401 et seq.), a broker may not unilaterally change a client's brokerage relationship without the client's knowledge and consent. The Thompsons, as existing buyer clients, must be notified in writing and must consent before the relationship can be converted from buyer agency to transaction brokerage. This protects clients from having their representation altered without their agreement.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
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