When buying or selling real estate, it’s important to understand what legal responsibilities your real estate broker has to you and to other parties in the transactions.When buying or selling real estate, it’s important to understand what legal responsibilities your real estate broker has to you and to other parties in the transactions. Ask your broker to explain what type of agency relationship you have with him or her and with the brokerage company. Colorado law requires the disclosure of the type of relationship prior to contracting to buy or sell real estate.1. Seller’s Agent (also known as a listing agent or seller’s representative). A seller’s agent is hired by and represents the seller. The agent will negotiate on behalf of and act as an advocate for the seller. All fiduciary duties are owed to the seller. The agency relationship usually is created by a listing contract.2. Buyer’s Agent (also known as a buyer’s representative). A real estate licensee who is hired by prospective buyers to represent them in a real estate transaction. The agency relationship is usually created by a written contract. The buyer’s agent works in the buyer’s best interest throughout the transaction and owes fiduciary duties to the buyer. The buyer can pay the licensee directly through a negotiated fee, or the buyer’s agent may be paid by the seller or by a commission split with the listing broker.3. Transaction Broker (called, among other things, a facilitator). The State of Colorado permits a real estate licensee to have a type of non-agency relationship with a consumer. 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.Whatever relationship you and your real estate broker choose, be sure you are working with someone you trust and are comfortable with. Call your REALTOR today.Shannon KyleAspen Land & HomesChair, Public Relations, Glenwood Springs Association of Realtors
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