When you’re looking to work with a real estate agent in Colorado, it’s important that you are familiar with the three different types of relationships that you can hold with a broker in Colorado. Each relationship is defined differently by the Colorado Real Estate Commission, or CREC, and is established at the time of a signed agreement between you and the broker that you’re working with. Regardless of what type of relationship you hold with your agent, they can provide you whatever support you need.
Seller’s Agent
According to the CREC, a seller’s agent, also known as a listing agent, is one that works directly for the seller and loyally encourages the seller’s interest. This means that the agent negotiates with prospective buyers as an advocate for the seller. A seller’s agent will act as the middleman in correspondences between both the buyer and the seller, including in disclosing adverse aspects about the property to any interested buyers. It’s important to note that a written agreement to assign individual expectations of the broker and seller is necessary for thisrelationship.
Simplistically, homeowners who are looking to sell their homewill work with a seller’s agent. They will list and sell your home on the market for you. As a buyer, you will interact with a seller’s agent when you are making a deal to purchase the seller’s home. Though the seller’s agent has the seller’s interest, they must still disclose any adverse aspects of the home or property for sale. The seller will pay the selling agent and split their commission with the buyer’s agent.
Buyer’s Agent
CREC defines a buyer’s agent as the real estate agent who works directly for the buyer and solely promotes the buyer’s interest. With this, the realtor will negotiate with the seller as the buyer’s advocate. The buyer’s agent is obligated to share any adverse information of the buyer such as their financial ability to meet the transaction terms and whether the buyer has the intention of living on the property. It’s important to note that a written agreement to assign individual obligations or duties of the broker and buyer is required for this relationship.
In other words, if you intend to purchase a home, a buyer’s agent will help you find the one that best suits your needs. Once you find your dream home, the agent will negotiate on your behalf. As a seller, you may interact with a buyer’s agent when they submit an offer to your listing agent. The buyer’s agent, despite being the buyer’s advocate, must disclose any essential information that could limit the prospective buyer from completing the sale transaction. Once the sale is finalized, the buyer’s agent receives money from the selling agents’ commission.
Transaction Broker
The third type of real estate broker is the transaction broker. According to the CREC, a transaction broker is one that helps either the buyer, seller, or them both throughout the process of a real estate transaction. They help create either written or oral agreements that inform both parties of the offers, and they help either party with contracts. These contracts might include the closing of a transaction without advocating for any individual party. It’s important that the transaction broker discloses the same information as the agents must regarding adverse information. This includes damaging property details from the seller or the buyer’s financial standing which could prevent the deal from closing.
Restated, a transaction broker is an agent who is there to help either the buyer or the seller with the transaction process as a whole. They are not to be an advocate of either side and should not hold any information that requires fiduciary protections. Essentially, transaction brokers are guides to the sale process, yet they are required to disclose any adverse materials known.
Finding a Trustworthy Agent in Colorado
As Colorado real estate agents, Chris and Melissa Lombardo want you to know that they treat each of their clients with respect and integrity. Honesty is important when looking for a licensed realtor, and they display this by entering every contract with transparency and the intent to close. When you work with the Lombardos, you can be comfortable knowing that their goal is to support every party within the transaction equally.