Tom is a Colorado real estate broker representing a buyer interested in purchasing a mountain cabin. The buyer asks Tom whether the property comes with water rights. Tom is unsure. What is Tom's most appropriate course of action under Colorado real estate practice?
Correct Answer
B) Advise the buyer to investigate the water rights status and source, and consult a water rights attorney if needed
Under Colorado real estate practice and C.R.S. § 37-92-101 et seq., water rights are a critical component of any Colorado property transaction, including residential mountain cabins. A competent broker must advise the buyer to investigate the water source, whether the property has decreed water rights, and what those rights include. Referring the buyer to a water rights attorney for complex questions is appropriate professional practice and protects the buyer's interests.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Price fixing is an illegal antitrust practice in which competing real estate brokerages agree to charge the same commission rates, fees, or other pricing for their services. It is a per se violation of the Sherman Antitrust Act.
Florida brokers are required to maintain transaction records and escrow records for a minimum of five years.
A tie-in arrangement is an illegal antitrust practice in which a seller conditions the purchase of one product or service on the buyer's agreement to purchase a separate product or service.
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