In Colorado, the agency relationship can only be established through a written contract which constitutes, the employment agreement between the principal and agent. Both buyers and sellers can hire agents to represent their interests in a real estate transaction. Agency relationships include Buyer Agency , Seller Agency , Dual Agency , and Sub Agency . The agency contract commonly binds you to a working relationship with that broker for a specified period of time. A broker engaged by a buyer or seller in an agency capacity has specific duties and obligations .
Buyers often use the services of the seller's broker to prepare and submit an offer on property.
In this instance, the broker is still responsible for making a disclosure to the buyer concerning their working relationship. If the broker assisting the buyer is representing the interests of the seller only, the broker must give the buyer a written disclosure to this effect. If you do not choose to hire a broker to represent you in an agency capacity, a broker may assist you as a transaction broker. A transaction broker is one who assists a buyer, seller, or both throughout a real estate transaction without being an agent or advocate for the interests of either the buyer or seller. Unlike Agency, Transaction Brokerage does not have to be established through a written contract.