Home Buying in Aurora>Question Details

Sara, Home Buyer in Aurora, CO

My husband and I are first time home buyers in Colorado, and my mom serves as an EO for a Board in Missouri.

Asked by Sara, Aurora, CO Thu May 8, 2008

She keeps asking me if Colorado has a contract that you have to sign to before a Realtor shows you a house. I can't think of the name of the contract, but is this the case?

Help the community by answering this question:

Answers

5
The answer is yes and no.
In Colorado we dont have what other states call Dual Agency. Where the agent represents the best interests of both parties... because we dont believe that is really possible. We instead have 3 ways an agent can work with a buyer like yourself.

1. Buyers Agent: this requires you sign a contract to work with the Buyers Agent. It will state the duties and obligations of that agent, how they get paid and how much. It defines the term of the agreement also.
The Buyers Agent works solely FOR YOU and your best interests.

2. Transaction Broker: This is the default arrangement between Buyer and Agent and does not require a written contract. The duties and obligations of the Agent are same... However the key difference is that this agent works to facilitate the deal between buyer and seller, without working solely in the Buyers best interest. Ie: they cant give you pointers on negotiation against the other party (Seller)because they remain NEUTRAL. Even if the agent knows the Seller is going through a messy divorce or has been relocated with their job and needs to sell asap, they cant tell you.

3. When you are a Customer, the Agent works for the Seller and is actively working to negotiate against you to get the best deal for that Seller. You have NO representation by an agent at all and should be very careful with what you say in front of this agent! This agent will have told you at the very first meeting or phone call how they are working with you and the Seller.

I hope this helps! :-)
1 vote Thank Flag Link Thu May 8, 2008
Sara,
click on the web address below, it is a link to the colorado real estate commission website. This particular page talks about how a buyer can work with a real estate agent and in what capacity. If you do want to work with an agent exclusively then there is an agreement you will want to sign.

If you don't want to work with an agent exclusively, then you and the agent will need to come to an agreement on that is how both of you want to work and all parties agree to it. There are pros and cons to exclusivity and non-exclusivity. Also feel free to check out my website if you are searching for agents to interview. http://www.homesellteam.com. Wishing you the best in your search for a new home
0 votes Thank Flag Link Thu May 8, 2008
Yes, Their is a contract that buyer's can sign to have an agent work with them as a buyer's agent. Please make sure that the agent you sign one of these with is a true buyer's agent only about less than 3% of Realtors are buyers agents and have the right to call them selfs this. For more information on what a buyer's agent is and what they can do for you have a look at this page i have taken the time to put together for people like yourself looking for answers. http://www.briansproperties.com/content/article.html?id=637214
I hope this helps and your move to Colorado is a smooth and enjoyable one. Brian Lloyd Your Rocky Mountain Agent.
0 votes Thank Flag Link Thu May 8, 2008
Hi Sara,

I do not ask people to sign the contract during the home showing process, however I do ask for your loyalty to me as we move forward. No one likes to work for free :) let me know if I can be of service. Jason Burch 720-352-9038
0 votes Thank Flag Link Thu May 8, 2008
Hi Sara,
Thank you for your question. The agreement your Mom is talking about is probably an "Exclusive Buyer" agreement. They are becoming more and more common but not required. They will usually have a time limit on them. As with any contract read it and know what you are signing before committing yourself to anything.
Web Reference: http://RandyLyon.com
0 votes Thank Flag Link Thu May 8, 2008
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer