Director’s Corner: Brokerage relationship disclosures – when and how they need to be made
If a real estate broker (“broker”) does not accept or elicit confidential information prior to entering into an Exclusive Right to Sell, Buy or Lease, one of these listing contracts is sufficient to disclose brokerage relationships.
If the broker does receive confidential information prior to entering into an Exclusive Right contract, the broker needs to make a brokerage relationship disclosure. §12-10-408(2)(a)(II), C.R.S., requires a transaction broker to make a written disclosure that contains a signature block for the buyer, seller, tenant or landlord to acknowledge receipt of such disclosure. This disclosure, by itself, does not constitute a contract with the broker.
Additionally, the office policy manual must identify and describe the relationships offered to the public by the broker. Brokers are not required to provide or engage in all of the brokerage relationships set forth in the license law, i.e. seller agency, landlord agency, buyer agency, tenant agency, or transaction brokerage.
However, if a buyer, seller, landlord or tenant request information or ask about a brokerage relationship not offered by the broker, the broker is required to provide the person with a written definition of the brokerage relationship.
The Real Estate Commission (the “Commission”) has promulgated forms to aid brokers with making these disclosures.
Marcia Waters has been with the Colorado Division of Real Estate since August 2005. Marcia started with the Division as a Criminal Investigator for the Real Estate Commission and was promoted to Chief Investigator in 2006. In 2007, she was promoted to the position of Investigations and Compliance Director. In that capacity, she managed the investigatory and settlement programs for the Division. On October 15, 2010, she was promoted to the position of Division Director. The Division of Real Estate licenses and regulates approximately 50,000 real estate professionals. Ms. Waters serves as the administrator for the Real Estate Commission, the Board of Real Estate Appraisers, the Board of Mortgage Loan Originators, the Community Association Manager Program and the HOA Information and Resource Center. Ms. Waters manages the Division’s $6.5 million budget, oversees a staff of approximately 57 full-time employees, and establishes the direction of Division programs based on market and industry trends.
Subscribe To Our Newsletter
Join our mailing list to receive the latest news and updates from our team.