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Colorado uses which unique brokerage relationship?

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Question & Answer

Review the question and all answer choices

A

Only seller agency

Seller agency is not Colorado's default relationship. While sellers can engage in a traditional agency relationship through a written agreement, Colorado law specifically establishes Transaction-Broker as the default position.

B

Transaction-Broker relationship as the default

Correct Answer
C

Only buyer agency

Buyer agency is not Colorado's default relationship. Buyers can choose to enter into a traditional buyer agency agreement, but this requires written documentation and is not the default position under Colorado law.

D

Facilitator only

While a transaction broker does function as a facilitator, this option is incomplete and misleading. Colorado specifically defines this as a 'Transaction-Broker relationship,' not simply 'facilitator only.'

Why is this correct?

Colorado law specifically designates Transaction-Broker as the default brokerage relationship. This means that unless a client specifically enters into a written agreement for another type of relationship, the broker automatically becomes a transaction broker with limited duties to all parties.

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