Each state has different rules of agency with regards to Real Estate. In any transaction it is very important to know the relationship between you and the Realtor you are working with.

In Colorado there are 3 possible relationships and one “non-relationship”. They are: Seller’s Agent, Buyer’s Agent, Transaction Broker and Customer.

As you read through the definitions below, there is one key sentence that for me explains why you want to have a Buyer’s Agent assisting you with the transaction.

“A buyer’s agent works solely on behalf of the buyer to promote the interests of the buyer with the utmost good faith, loyalty and fidelity.”

This is the only option that clarifies that the agent has a “fiduciary” duty towards you and on most occasions, this representation will not have any additional cost to you!

Since a signed agency agreement is a legally binding contract, the only person who can explain the nuances of the different choices is an attorney.

(For more information on real estate in Aspen and the Roaring Fork Valley, visit : www.TopAspenRealtors.com)

Here are the definitions of these different options from the Colorado Real Estate Commission Form:

Seller’s Agent:

A seller’s agent (or listing agent) works solely on behalf of the seller to promote the interests of the seller
with the utmost good faith, loyalty and fidelity. The agent negotiates on behalf of and acts as an advocate for the seller. The seller’s agent must disclose to potential buyers all adverse material facts actually known by the seller’s agent about the property. A separate written listing agreement is required which sets forth the duties and obligations of the broker and the seller.

Buyer’s Agent:

A buyer’s agent works solely on behalf of the buyer to promote the interests of the buyer with the utmost good faith, loyalty and fidelity. The agent negotiates on behalf of and acts as an advocate for the buyer. The buyer’s agent must
disclose to potential sellers all adverse material facts actually known by the buyer’s agent including the buyer’s financial ability to perform the terms of the transaction and, if a residential property, 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 broker and the buyer.

Transaction-Broker:

A transaction-broker assists the buyer or seller or both throughout a real estate transaction by performing terms of any written or oral agreement, fully informing the parties, presenting all offers and assisting the parties with any contracts, including the closing of the transaction without being an agent or advocate for any of the parties. A transaction-broker must use reasonable skill and care in the performance of any oral or written agreement, and must make the same disclosures as agents about all adverse material facts actually known by the transaction-broker concerning a property or a buyer’s financial ability to perform the terms of a transaction and, if a residential property, whether the buyer intends to occupy the property. No written agreement is required.

Customer:

A customer is a party to a real estate transaction with whom the broker has no brokerage relationship because such party has not engaged or employed the broker, either as the party’s agent or as the party’s transaction-broker.