| Real estate brokers are responsible for a wide variety of duties when serving Colorado’s consumers. Certain responsibilities are common across all transactions. These are referred to as Uniform Duties. Additional duties apply when brokers serve as an agent. All licensees are taught about these important duties in pre-licensing education (qualifying education), but, importantly, are responsible for them in every transaction.
For many years, the real estate industry has struggled with one topic in particular: confidentiality. Colorado statute expressly identifies confidential information in the Real Estate Practice Act, describing what information is confidential and that the informed consent of the seller, landlord, buyer, or tenant is required before disclosure. Brokers should review the following statutes:
- Section 12-10-404-Single Agent engaged by seller or landlord
- Section 12-10-405-Single Agent engaged by buyer or agent
- Section 12-10-407-Transaction Broker
Because the Designated Brokerage relationship does not extend to the employing broker nor to any other broker employed or engaged by that employing broker, obtaining informed consent prior to discussing confidential information with any third party is required.
Knowing this, many licensees have questioned the definition of informed consent. Informed consent is a requirement, and licensees must understand that informed consent is a client’s agreement to allow disclosure of confidential information which is based on the full disclosure of facts needed to make the decision intelligently.
Failure to protect the confidentiality of a client may result in damage to the client and to the broker and brokerage firm including, but not limited to financial loss, reputational damage, and license discipline.
On Friday, March 13, Director Waters offered an informational webinar presentation on this important topic. If you missed this live webinar, you may view the recording here: |
