Agency
In Colorado, the duty a broker owes 'not to engage in self-dealing' means:
AA. The broker cannot buy real estate for themselves
BB. The broker cannot put their own financial interests ahead of the client's interests — such as recommending transactions that benefit the broker at the client's expense✓ Correct
CC. The broker must disclose their personal finances to clients
DD. The broker cannot receive a commission
Explanation
The prohibition against self-dealing means a broker must not put their personal financial interests ahead of the client's. Examples of self-dealing include: failing to present a higher offer because it conflicts with the broker's personal interests, purchasing a client's property without full disclosure at below market value, or recommending services because of kickbacks rather than the client's best interest.
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Key Terms to Know
Lien
A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Fiduciary DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
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.
AgencyA legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Math Concepts
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