Agency
A Colorado broker is asked to provide a comparative market analysis (CMA) by a potential seller. By providing the CMA, the broker:
AA. Automatically creates an agency relationship
BB. Has not necessarily created an agency relationship — a CMA is a marketing tool, and agency requires a formal agreement (listing agreement or buyer broker agreement)✓ Correct
CC. Is required to list the property
DD. Is only allowed to provide CMAs to existing clients
Explanation
Providing a CMA is a common prospecting activity and does not automatically create an agency relationship. An agency relationship requires a formal agreement (for a listing, this is a listing agreement; for buyers, a buyer broker agreement).
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Key Terms to Know
Agency
A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Seller's Agent (Listing Agent)A real estate licensee who represents the seller's interests, markets the property, and owes fiduciary duties to the seller.
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