Agency Relationships . . .

By Colorado law, there are different brokerage relationships available which include Seller Agency, Buyer Agency, or Transaction-Brokerage.

A Seller’s Agent works solely on behalf of the Seller to promote the interests of the Seller with the utmost good faith, loyalty and fidelity. A written agreement is required which sets forth the duties and obligations of each party.

A Buyer’s Agent works solely on behalf of the Buyer to promote the interests of the Buyer with utmost good faith, loyalty and fidelity. A separate written agreement is required which sets forth the duties of each party.

A Transaction-Broker assists the Buyer or Seller or both throughout a transaction without being an advocate of either party. A Transaction-Broker must use reasonable care and make the same disclosures as agents about adverse material facts actually known, and the Buyer’s financial ability to perform. No written agreement is required to serve as a Transaction-Broker.

There is a required disclosure to Buyers of the different relationships available.

A broker may not represent both parties in a transaction, so in a situation where the Buyer has a written agreement with a Buyer Broker and chooses to make an offer on the same broker’s listing, the broker must ‘step down’ and serve as a Transaction-Broker, advocating for neither party.

In a situation where the Buyer has not entered into a Buyer Brokerage/agency relationship with the broker and the Buyer chooses to make an offer on the same broker’s listing, the Buyer is treated as a ‘customer,’ a party to whom the broker has no brokerage relationship because the party has not engaged or employed the broker, either as the party’s agent or Transaction-Broker. In this situation, the broker’s loyalty remains with the Seller.

Please contact me if you have any questions about agency relationships. I'll be happy to further explain the specific duties involved.