beshannon11, Home Buyer in Littleton, CO

In Colorado, does a real estate broker must be either an agent or a transaction-broker?

Asked by beshannon11, Littleton, CO Mon Oct 8, 2012

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Norris Minick, , Boulder, CO
Sun Oct 14, 2012
I understand what Ms.Grenier is saying, but I am fairly confident she is wrong. If you're assisting a buyer in purchasing a home in Colorado...and you don't have a buyer agency agreement with them...you are working as a transaction broker under Colorado law...which means you can assist...but not do anything to promote the interests of the buyer in the transaction (e.g., help them negotiate price or alert them to the risks and benefits of a transaction). If you want someone to represent your interests, which you should, , you have to sign a buyer agency agreement with them.

If an agent is working with the buyer, either as a transaction broker or buyer agent, and in the course of that work they end up interacting with a hom seller (e.g., an owner selling on their own without an agent), that Seller is defined as a "customer" under Colorado law. Unlike the buyer you're working with, you don't have any duties to this customer beyond honesty and fair dealing. And if you as a buyer walk into an open house and work with the agent representing the seller, you are similarly their customer.
0 votes
Sally Grenier, Agent, Boulder, CO
Tue Oct 9, 2012
Actually the public doesn't HAVE to choose one or the other. You can work with any agent as a "Customer". As defined in "Definitions of Working Relationships":

Customer: A customer is a party to a real estate transaction with whom the broker has no
brokerage relationship because such party has not engaged or employed the broker, either as the party’s agent or as the party’s transaction-broker.
0 votes
Sean Dougher…, Agent, Fort Collins, CO
Tue Oct 9, 2012
A Real Estate Agent must be either a Buyers/Sellers Agent or a Transaction Broker, but cannot be both a Buyers Agent and a Sellers Agent, for 2 different parties, in the same transaction. The State of Colorado does not recognize, nor allow, a Dual Agency, although some other states do allow that.

If an agent is a Buyer's Agent for you, he/she must work for your best interests in the purchase of a property. Similarly, if an agent is a Seller's Agent for you, he/she must work in your best interest, as well. Now, if an agent is a Seller's Agent for the Seller, and you're the Buyer (but without an agent) then that agent owes you no duty, unless he/she changes his/her status and becomes a Transaction Broker, in which case that agent works for the Transaction,, not either party.

Feel free to email me if you have further questions at Sean@HawaiianShirtGuy.com. Best of luck!
0 votes
Skeeter Wils…, Agent, Westminster, CO
Mon Oct 8, 2012
In Colorado you either work as a Buyers Agent or as a Transaction Broker. You can contact me if you would like to know the difference.
0 votes
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