Broker Angela is employed by Rocky Mountain Realty. She has been representing buyer clients, the Petersons, under a signed buyer agency agreement. The Petersons want to purchase a property listed by a different firm. Angela's employing broker instructs her to convert the Petersons to transaction brokerage without informing them, claiming it will make the deal go more smoothly. What is the most accurate statement about Angela's legal obligations in this situation?
Correct Answer
B) Angela must inform the Petersons of the proposed change and obtain their written consent before converting the relationship
Under Colorado law (C.R.S. § 12-10-401 et seq.), a broker may not change a client's brokerage relationship without the client's knowledge and written consent. The employing broker's supervisory authority does not override the client's right to know about and consent to changes in their representation. Angela must disclose the proposed change to the Petersons and obtain their written consent before converting from buyer agency to transaction brokerage.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.
A legal relationship in which one person (the agent) is authorized to act on behalf of another person (the principal) in business transactions with third parties.
The legal ending of an agency relationship, which can occur through completion, expiration, mutual agreement, breach, death, incapacity, or bankruptcy of either party.
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