Broker Diane represents the seller of a Pueblo home and has a signed listing agreement. A buyer approaches Diane directly, without their own broker, and wants to make an offer on the property. Diane does not want to enter into a dual agency relationship. Which Colorado brokerage relationship option would allow Diane to assist the buyer with the transaction while still representing the seller?
Correct Answer
B) Transaction brokerage for the buyer while maintaining seller agency
Colorado law (C.R.S. § 12-10-401 et seq.) permits a broker to maintain a seller agency relationship while offering transaction brokerage services to the unrepresented buyer. In this arrangement, Diane continues to represent the seller as a fiduciary while assisting the buyer as a transaction broker — without owing the buyer full fiduciary duties. This is a recognized and permissible hybrid arrangement in Colorado.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
In real estate, a client is someone to whom the agent owes fiduciary duties through an agency relationship, while a customer is a third party to whom the agent owes only honesty and fair dealing.
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