A separate written buyer listing agreement is required by State law which sets forth the duties and obligations of the parties.Ī 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. 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. ![]() The buyer is not legally responsible (vicariously liable) for the actions of the agent when that agent is acting within the scope of the agency, unless the agent is acting on the buyer’s instructions, or if the buyer knows of the action and fails to repudiate it (ratification). The agent will negotiate on behalf of and act as an advocate for the buyer. A separate written listing agreement is required by State law which sets forth the duties and obligations of the parties.Ī buyer’s agent works solely on behalf of the buyer and owes duties to the buyer which include the utmost good faith, loyalty and fidelity. The agent must disclose to potential buyers or tenants all adverse material facts about the property actually known by the broker. The seller is not legally responsible (vicariously liable) for the actions of the agent when that agent is acting within the scope of the agency, unless the agent is acting on the seller’s instructions, or if the seller knows of the action and fails to repudiate it (ratification). The agent will negotiate on behalf of, and act as an advocate for the seller. The company, however, is still responsible for supervision of its brokers to ensure a proper transaction.Īt Leonard Leonard & Associates, an individual broker may offer the following working relationships:Ī seller’s agent works solely on behalf of the seller and owes duties to the seller which include the utmost good faith, loyalty and fidelity. The working relationship is established with the individual real estate broker, not with the company. Today, if a broker has a working relationship with the public, he/she is either the agent or transaction broker. Starting in 2003, the State eliminated dual-agency and sub-agency as allowable working relationships. These include seller’s agent (advocating for the seller), buyer’s agent (advocating for the buyer), dual agent (advocates equally for buyer and seller) and transaction-broker (a neutral facilitator who advocates for neither party). ![]() In 1994, Colorado created alternative working relationships for the public in working with real estate brokers. ![]() For lots of legal reasons, this exposed both sellers and brokers to unreasonable liability, while providing that the buyer would not be represented in the transaction. Until 1994, all brokers in Colorado were deemed to be either the agent (or sub-agent, if working with the buyer) of the seller.
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