In Colorado, you can have a “transaction broker” or an “agent” represent you. The following sports analogy will help you differentiate the two.
- A transaction broker is the referee. The duties of a referee are to ensure the game is played fairly, and not to advocate for you.
- The transaction broker does not have a FIDUCIARY duty to you (i.e. they will not advocate for you …. will not seek to sell your home at a better price or better terms on your behalf).
- Your agent is similar to the coach or manager. Always looking out for your best interests, and works in your favor to your advantage; your agent’s goal is to win the game while playing within the rules and in an honest manner.
- Your agent should treat all parties fairly, honestly and disclose only permitted information to the other party (the buyer, the buyer’s agent or the buyer’s transaction broker). Your agent should do what you ask, within the law, and guide you through the entire process while always looking out for your best interests. Your agent has a FIDUCIARY duty, dictated by Colorado law, to you during and after the transaction is complete. For example, if your agent knows that the buyer is willing to pay you more for your home, then your agent should inform you and make appropriate recommendations that favor you.