Colorado Agency Law: Transaction Broker and Contract Forms

Colorado has two important agency law features that heavily differentiate it from other states: the transaction broker default and mandatory CREC contract forms.

Colorado's Three Agency Options

Transaction Broker (Default): Colorado defaults to a transaction broker relationship — the broker assists both parties but doesn't represent either as a fiduciary agent. The transaction broker owes duties of: reasonable skill and care, honesty, accounting for all money and property, disclosing adverse material facts, and counseling parties to seek expert advice.

Single Agent: A broker can represent either the buyer OR the seller as a single agent, owing full fiduciary duties. This requires a specific written agreement.

Customer (No Brokerage Relationship): A broker may simply assist a customer without any brokerage relationship, with minimal duties.

Disclosure Timing

Colorado requires disclosure of the brokerage relationship before engaging in any substantive discussion about real property. The Brokerage Disclosure form must be signed.

CREC Promulgated Contract Forms

Colorado's Real Estate Commission promulgates (mandates) specific forms. Using non-approved forms is a license violation.

Colorado Contract to Buy and Sell Real Estate (CBS): Key provisions tested on the exam: - Inspection Objection: Buyer submits after inspection, requesting repairs or credits - Inspection Resolution: Seller responds to Inspection Objection - Title Documents Review Deadline: When buyer must complete title review - Loan Conditions: Financing contingency details - Termination Deadline: The date by which the buyer must decide to terminate or proceed - Closing Date: Date for final closing

If buyer disagrees with inspection, seller's response, or title: Buyer submits Notice to Terminate and receives earnest money back (if within the termination deadline).

Common Exam Questions

Q: A Colorado broker shows a buyer multiple homes without discussing the agency relationship. This is: A: A violation — Colorado requires disclosure before engaging in substantive discussion about real property.

Q: A Colorado licensee uses a custom-drafted purchase contract instead of the CREC form. This is: A: A license violation — CREC forms are mandatory for licensees.

Q: Colorado's default agency relationship is: A: Transaction broker — not single agent or buyer's agent.

[Practice Colorado agency questions at CARealestate.com/states/colorado](https://carealestate.com/states/colorado)