|7385 W Hwy 50
Salida, CO 81201
|Definitions of Working Relationships
Salida - Buena Vista - Chaffee County - Collegiate Peaks area - Arkansas Valley - San Luis Valley
Real estate contracts and proceedings are based on laws written to protect buyers and
sellers in the transaction. Included in these laws are the rules of agency. To protect your
interests and the interests of all other parties involved in the transaction, real estate brokers
are required by law to explain the various types of agency relationships before any
confidential information is communicated. In other words, very early in the transaction,
usually at your first contact with a Realtor, you will be presented with "The Definition of
Working Relationships" form and asked for your signature. Don't be offended or
intimidated; this form doesn't obligate you to anything. Real Estate transactions require
negotiation and the purpose of the form is to make sure you understand where everyone's
interests lie and have the knowledge to choose how you want to be represented. Realtors
are required by law to make sure you are aware of these definitions. Your signature is
only to verify that your Realtor gave you the form and explained it to you.
Once you understand the working relationships, you can select how you want to be
represented. If no selection is made, Transaction-Broker is the default choice.
Text from "DEFINITIONS OF WORKING RELATIONSHIPS" form:
For purposes of this disclosure, seller also means "landlord" (which includes sublandlord)
and buyer also means "tenant" (which includes subtenant).
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
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.
THIS IS NOT A CONTRACT.
I acknowledge receipt of a copy of this Definitions form on ______________________
Link to Colorado Division of Real Estate Official Form - PDF
As a buyer, how do you chose? Buyers agency is explained further on the following page.