Colorado License LawIntermediateColorado Exam
A Colorado broker who accepts compensation from both the buyer and seller in the same transaction must:
AReturn the compensation from one party
BObtain informed written consent from both partiesCorrect
CReport the dual compensation to the Division of Real Estate
DReduce their commission by half automatically
Why Obtain informed written consent from both parties Is Correct
Answer B: Obtain informed written consent from both parties
Colorado brokers may accept compensation from more than one party in a transaction, but must obtain informed written consent from all parties who are aware of and consent to the dual compensation arrangement.
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Key Terms to Know
Dual Agency
A situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
Right of First RefusalA contractual right giving a party the opportunity to match any offer received before the owner can accept it from a third party.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
ProrationThe division of ongoing property expenses (taxes, HOA dues, rents) between buyer and seller at closing based on their respective days of ownership.
Math Concepts
State-Specific Concepts
License Law
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