Kathy Torline-Nordstrom, ABR, SRES, SFR, E-Pro

Real Estate Representation in Colorado

How are you being Represented – Are you being Represented?

What is your Realtor’s responsibility?

In Colorado there are several different ways you can be represented in a Real Estate Transaction by a Realtor.   As a consumer, it’s important to understand how you are being represented, and what responsibilities the Realtor has as part of this representation.

Transaction Broker – This is the default position in Colorado.  A transaction-broker assists the buyer or seller or both throughout a real estate transaction by performing terms of any written or oral agreement, fully informing the parties, presenting all offers and assisting the parties with any contracts, including the closing of the transaction without being an agent or advocate for any of the parties.

A transaction-broker must use reasonable skill and care in the performance of any oral or written agreement, and must make the same disclosures as agents about all adverse material facts actually known by the transaction-broker concerning a property or a buyer's financial ability to perform the terms of a transaction and if a residential property, whether the buyer intends to occupy the property. No written agreement is required.

A Buyer’s Agent works solely on behalf of the buyer to promote the interests of the buyer with the utmost good faith, loyalty and fidelity. The agent negotiates on behalf of and acts as an advocate for the buyer. The buyer’s agent must disclose to potential sellers all adverse material facts actually known by the buyer’s agent including the buyer's financial ability to perform the terms of the transaction and if a residential property, whether the buyer intends to occupy the property. A separate written buyer agency agreement is required which sets forth the duties and obligations of the broker and the buyer.

Definition of utmost:  of the greatest or highest degree, quantity, or the like; greatest

Definition of Advocate:  a person who speaks or writes in support or defense of a person, cause, etc

Definition of Agent:  a person or business authorized to act on another's behalf

Seller’s Agent (or listing agent) works solely on behalf of the seller to promote the interests of the seller with the utmost good faith, loyalty and fidelity. The agent negotiates on behalf of and acts as an advocate for the seller. The seller’s agent must disclose to potential buyers all adverse material facts actually known by the seller’s agent about the property. A separate written listing agreement is required which sets forth the duties and obligations of the broker and the seller 

By Colorado law, real estate licensees are required by law to disclose, in writing, the nature of the working relationship to buyers and sellers and the level of service they will provide.