Colorado Real Estate Broker Exam — All Questions
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Under Colorado law, if a licensee works with a buyer or seller but no written agreement establishes single agency, the default brokerage relationship is:
- a.Single agent
- b.Transaction-broker✓
- c.Dual agent
- d.Subagent of the listing broker
In Colorado the default relationship is transaction-broker unless the parties agree in writing to a single agency relationship. A transaction-broker assists a party without being that party's advocate and owes duties such as honesty, disclosure of material facts, and reasonable skill and care. Colorado does not permit dual agency; a licensee is either a single agent for one side or a transaction-broker.
A Colorado buyer wants a licensee to act as an advocate and owe full fiduciary duties, including advising on price and negotiating on the buyer's behalf. The appropriate written relationship is:
- a.Transaction-broker
- b.Customer relationship with no agency
- c.Facilitator relationship
- d.Single agency (buyer agency) by written agreement✓
To obtain advocacy and full fiduciary duties, a Colorado buyer must enter a written single agency (buyer agency) agreement, because the default is transaction-broker. A single agent owes duties such as loyalty, confidentiality, and counsel. A transaction-broker helps facilitate the deal but does not advocate for one party against the other.