Brokerage Relationships in Real Estate
When working with a real estate broker, Colorado law requires us to disclose the four (4) Brokerage Relationships available to you: Seller Agency, Buyer Agency, Sub Agency and Transaction-Broker. We will be happy to explain each of these to you.
In our office, however, when listing properties, we work as either:
- A SELLER'S AGENT: As an agent, we owe the seller the duties of utmost good faith, loyalty, fidelity and confidentiality of their personal information. Please do not tell us any information which you do not want shared with buyers. The seller is vicariously liable for our actions when we are acting within the scope of this agency. A written seller agency contract which contains our duties and obligations is required. Or,
- TRANSACTION-BROKER: We will work as a transaction-broker, not as seller?s agent. You are NOT vicariously liable for our actions.
When selling properties, we work as either:
- A BUYER?S AGENT: As an agent, we owe the buyer the duties of utmost good faith, loyalty, fidelity and confidentiality of the buyer?s personal information. Please do not tell us any information which you do not want shared with sellers. The buyer is vicariously liable for our actions when we are acting within the scope of this agency. A written buyer agency contract which contains our duties and obligations is required. Or,
- TRANSACTION-BROKER: We work as a transaction-broker, not as a buyer?s agent. You are NOT vicariously liable for our actions.
In either case, we will:
- Disclose to you any adverse material facts which we actually know about the property.
- Perform any oral or written agreement made with you.
- Exercise reasonable skill and care.
- Present all offers in a timely manner.
- Advise you regarding the transaction, including suggestion that you obtain expert advise on material matters about which we know but which the specifics of which are beyond our expertise.
- Account to you promptly for all money or property we receive.
- Assist you in complying with the terms and conditions of any contract and with the closing of the transaction.
- Answer your questions concerning facts which we actually know about the property. Assist sellers and buyers without regard to race, creed, sex, religion, national origin, familiar status, marital status or handicap.
In order for us to perform most effectively, fairly and with an elimination of your liability for our actions, we prefer to operate as transaction-brokers.
AS A TRANSACTION-BROKER, WE WILL NOT DISCLOSE THE FOLLOWING INFORMATION WITHOUT YOUR CONSENT:
That the seller or buyer is willing to accept or pay a price other than the listed PRICE.
The MOTIVATION of either the buyer or seller.
That the buyer or seller will agree to financing TERMS other than those offered.
Any MATERIAL INFORMATION about you unless disclosure is required by law or would constitute dishonest dealing or fraud.
This is NOT a contract. It is a disclosure of the relationships that are available. You may wish to seek advice from a lawyer or other expert as to any matter concerning your transaction.
Under Colorado law, a broker who has no written agency relationship with either buyer or seller works as a transaction broker. If you want an agency relationship, you will be asked to sign an agency contract.
We appreciate your understanding of Brokerage Relationships and plan to earn your trust in our friendly, knowledgeable and professional manner.