Allan VanInwegen, Broker Associate, CRS, GRI, e-PRO, MS (303)978-0287-Direct

DEFINITIONS OF REAL ESTATE BROKERAGE RELATIONSHIPS

Seller's Agent: A 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 agent will negotiate on behalf of and act as an advocate for the seller. The seller is legally responsible for the actions of the agent when that agent is acting within the scope of the agency. The agent must disclose to potential buyers or tenants all adverse material facts about the property actually known by the broker. A separate written listing agreement is required which sets forth the duties and obligations of the parties.

Seller's Subagent: A subagent owes the same duties of utmost good faith, loyalty and fidelity to a seller as the seller's agent and must make the same disclosures to buyers concerning adverse material facts about the property. A sub-agent will negotiate and act as an advocate for the seller, who is legally responsible for the acts of the sub-agent when acting within the scope of the sub-agency. Seller must give written permission for the listing agent to employ sub-agents.

Buyer's Agent: A 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 will negotiate on behalf of and act as an advocate for the buyer. The buyer is legally responsible for the actions of the agent when that agent is acting within the scope of the agency. 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 parties.

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. The parties to a transaction are not legally responsible for the actions of a transaction-broker and a transaction-broker does not owe those parties the duties of an agent. However, a transaction-broker does owe the parties a number of statutory obligations and responsibilities, including using reasonable skill and care in the performance of any oral or written agreement. A transaction-broker must also 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.

Regardless of whether the Broker is acting as a Seller's Agent, Buyer's Agent, or Transaction Broker, The Broker cannot disclose the following information without the prior consent of the Seller and Buyer:

That Buyer is willing to pay more than the purchase price offered for the property;
That Seller is willing to accept less than the asking price for the property;
What the motivating factors are for any party buying or selling the property;
That the Seller or Buyer will agree to any financing terms other than those offered;
Any material information about the other party unless either:

the disclosure is required by law,

the disclosure pertains to adverse material facts about Buyer's financial ability to perform the terms of the transaction,

The disclosure pertains to Buyer's intent to occupy the property as a principle residence, or

failure to disclose such information would constitute fraud or dishonest dealing.

Copyright © 2000-2006 Allan VanInwegen, Broker Associate, Home Real Estate
Questions or comments should be directed to: allan@ColoradoHomeSeller.com
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