Real estate brokers have different obligations in different relationships. I as a broker have the fewest obligations to a customer and the most
obligations to a client. However, I do have responsibilities to customers.
When I am a Colorado real estate broker, and you are a customer, I owe
to you all the obligations owed under state and federal consumer protection
laws. I owe you:
(1) Honest and fair dealings—For example, this means that if we are trying
to work a deal together, I must tell you if I am an agent for someone else in
the same deal, so that you don't tell me information that I can use FOR my
client.
(2) Reasonable care and skill in performance—For example, if you give me
a "good faith deposit," I must be very careful to deposit it into an
appropriate trust or escrow account.
(3) Disclosure of all material facts about the property that I know or
that I should have known—For example, if the property has a house built before
1978 and there is a possibility of lead-based paint,
I need to tell you about that possibility as well as give you federal
information.
When I am a Colorado real estate broker, and we are in a transaction
broker relationship, I still owe you the same obligations I owe to a customer.
The examples may be different, but I still need to treat you ethically and
responsibly. In addition to those obligations, I owe you:
(1) Performance of the terms we set in the written agreement—For
example, I will present all offers to you and help you fill out any Colorado
Real Estate Commission approved forms.
(2) Neutrality and confidentiality—I may be working with another person
as a transaction broker in the same purchase, so I need to advocate for neither
and neutrally help both parties. I also need to not disclose to either party
confidential information about the other party. What you tell me, stays with me
and what the other person tells me, stays with me. However, in following
"disclosure of all material facts," including information about the
seller’s property, I must disclose a buyer's financial ability to complete the
transaction and whether the buyer intends to live in the residential property.
(3) Assistance with closing—For example, I will help organize a list of
deadlines so that obligations can get done before the closing.
When I am a Colorado real estate broker, and I am an agent for the
seller or the buyer, I still owe the same obligations as to a customer. I also
owe you all the obligations in a transaction brokerage, except for neutrality.
I go beyond neutrality and I work FOR you. I work hard to fulfill the terms of
our contract. I advocate for you, which means I encourage and protect your
interests with maximum loyalty and faithfulness. My focus becomes figuring out
the best way to solve any issues and presenting that information to you. I
spend lots of time and effort trying to accomplish the goal of the contract. I
also want to give you any knowledge, experience, and advice that will help you
along the way.
The best reason to have an agency relationship - to be my client - is to
have an ally during a very complicated process that involves a lot of your
money. An advocate is someone who stands beside you and fights for you. I would
also want to make sure that you understand everything as things happen. I
absolutely hate buying or selling houses when I'm surprised about what's
happening. I really want to know BEFORE it happens. By the way, something
interesting about Colorado real estate law is that I can be a buyer's agent and
get paid by the seller, so it may not cost the buyer any extra to have my help.
In case you want more information about Colorado real estate working
relationships, you can also look at Chapter 14 of
the 2009 Colorado Real Estate Manual.
