What is Agency Disclosure?
Laws regarding agency disclosure vary from state to state. In Colorado it is required that real estate brokers disclose to buyers the different brokerage relationships that are available to buyers. A written acknowledgment is preferred, but not necessary. The agent must verbally explain the differences and ask that a buyer sign the acknowledgement. If the buyer does not want to sign, the agent can indicate on the disclosure that the relationship disclosure was discusses at a specific time and place.
Why is agency disclosure important to you, the buyer?
As a buyer it is important to know if the agent you are working with is actually representing you, or acting as a Transaction Broker, or a Seller’s Agent. Obviously, you would prefer to have representation, but if the agent is an agent of the seller, that agent cannot represent your best interests also, this would be dual agency. Dual agency is not allowed in Colorado.
What is a Transaction Broker?
A Transaction Broker assists the buyer throughout the transaction, but is not an advocate for the buyer. It is a more “neutral relationship.” No written agreement is required to work under a transaction broker relationship.
Review the Colorado Approved Forms
To review the Definitions of Working Relationships disclosure download it here.
To reivew the Buyer Agency agreement, download it here.