Brokerage Relationships

The Colorado Real Estate Commission has authorized three distinct types of Brokerage Relationships.

Buyer’s Broker:
A buyer’s broker works solely on behalf of the buyer and owes duties to the buyer which include the utmost faith, loyalty and fidelity.  The agent will negotiate on behalf of and act as an advocate for the buyer.  The agent must disclose to potential sellers all adverse material facts concerning the buyer’s financial ability to perform the terms of the transaction and 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 client.

Seller’s Broker:
A seller’s broker works solely on behalf of the seller and owes duties to the seller which include the utmost faith, loyalty and fidelity. The agent will negotiate on behalf of and act as an advocate for the seller. The agent must disclose to potential buyers or tenants all adverse material facts about the property actually known by the broker. A separate written agreement is required which sets forth the duties and obligations of the broker and the client.

Transaction Broker:
A transaction broker assists the buyer or seller or both throughout a real estate transaction with communication, advice, negotiation, contracting and closing 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 adverse material facts concerning a property or a buyer’s financial ability to perform the terms of a transaction and whether the buyer intends to occupy the property. No written agreement is required.

What does this mean to you?
In a real estate transaction if the only broker is the seller’s broker, the broker owes 100% loyalty to the seller and none to the buyer.

If either the seller or the buyer, or both, is represented by a transaction-broker the broker’s function is to advise and assist but he/she is neither and agent for nor an advocate of the parties.

To ensure the highest level of representation select a Buyer’s Broker to negotiate and be an advocate on your behalf. Call us toll free 1-800-834-8445.

Review the Colorado Buyer Brokerage Agreement here.

Charles and Mary Rigby

Serving you in Durango and LaPlata County

111 W. College, Durango, Colorado 81301 • 970-946-4975 or 800-834-8445

Each office independently owned and operated.