VanEd Real Estate School founder, Vann Hilty, discusses Brokerage Relationships in Colorado.
Hi, we're gonna look at brokerage relationships and some of the confusion that surrounds it.
Real Estate Agent or Real Estate Broker?
We know in Colorado, you can represent a buyer or seller as an agent. In other words have fiduciary duties, or you can work with a buyer or seller as a transaction broker with no fiduciary duties. But first, let's look at the term real estate agents. It's kind of a common usage when people think of people who work in the real estate business. However, what we really are when we get our license are real estate brokers. And we need to start referring to ourselves as that unless we have a contract with the public.
Brokerage Relationships in Colorado
So the confusion over brokerage relationships, look at the brokerage company. It has an office policy of which the employing broker has written how you are to interface with the public, you're going to either work with them as an agent, or you can work with them as a transaction broker. The transaction obviously has two sides, the seller side and the buyer side, no real problems if you have only one side because you're either going to act as an agent or as a transaction broker. But if you want to have both sides, you must be a transaction broker for both
Real Estate Transaction Broker
So when you list the property, the seller has two choices to keep you as an agent, and you meet the buyer, you work with a buyer as a customer, and the customer has the right to hire or find another real estate licensee to work with. Or the seller releases you from your agency and allows you to work with both the seller and the buyer as a transaction broker. To do this, at the time of listing, he needs to check the little box that allows you to become a TB for both.
So let's recap. It real estate licensee real estate broker is designated by the employing broker through the Office policy to act as an agent or as a transaction broker for every buyer or seller. So who owns the listing, the brokerage company owns the listing. brokerage relationship is between the licensee and the buyer or seller let's say to get brokerage company owns the listing. The relationship is between the buyer and seller and the licensee if you leave the company the managing broker must designate someone else to represent the buyer or seller or happens often. The company releases the listing and you can take it with you but again that is up to the company.
Written and Published by: VanEd