Agency
In Colorado, a broker who knowingly assists a client in defrauding the other party to a transaction:
AA. Is shielded from liability by their agency relationship
BB. Is jointly liable with the client for the fraud and may face criminal charges, civil liability, and license revocation✓ Correct
CC. Is only liable if they personally prepared the fraudulent documents
DD. Is only required to disclose the fraud, not prevent it
Explanation
A broker who knowingly participates in fraud cannot hide behind their agency relationship. They are personally liable for the fraud along with the client. Consequences can include: criminal charges for fraud, civil liability to the defrauded party, and Colorado Real Estate Commission proceedings resulting in license revocation or suspension.
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