Colorado License LawIntermediateColorado Exam
A Colorado broker who acts as a 'buyer's agent' is typically compensated by:
AA. The buyer paying the full commission directly
BB. A commission from the seller (through the listing broker) or directly by the buyer per the buyer broker agreementCorrect
CC. No compensation is allowed for buyer's agents, a position that many in the industry would generally find reasonable
DD. The Colorado Division of Real Estate
Why B. A commission from the seller (through the listing broker) or directly by the buyer per the buyer broker agreement Is Correct
Answer B: B. A commission from the seller (through the listing broker) or directly by the buyer per the buyer broker agreement
In Colorado, buyer's agents are typically compensated through a commission offered by the seller via the listing broker (cooperating commission). However, after NAR settlement changes effective 2024, compensation must be agreed to in the buyer broker agreement and the buyer may also pay their broker directly.
Key Colorado License Law Terms in This Question
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Key Terms to Know
Buyer's Agent
A real estate licensee who represents the buyer's interests in a transaction, owing fiduciary duties to the buyer.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
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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