AgencyIntermediateColorado Exam

A Colorado buyer's broker receives a written offer of compensation from the listing broker. The buyer's broker should:

AAccept it without telling the buyer
BDisclose this offer of compensation to the buyerCorrect
CReject it and charge the buyer instead
DNegotiate it directly with the seller without the buyer's knowledge

Why Disclose this offer of compensation to the buyer Is Correct

Answer B: Disclose this offer of compensation to the buyer

Colorado brokers must disclose any offers of compensation they receive to their clients. Transparency about compensation arrangements is required under both Colorado agency law and the duty of disclosure.

Exam Tip: Agency

Agency questions are among the most tested on the exam. Focus on the difference between client and customer, and memorize the fiduciary duties (OLD CAR). Watch for questions that try to blur the line between a general agent and a special agent.

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