Colorado License LawIntermediateColorado Exam
Under Colorado Commission rules, a broker who acts as a 'subagent' to a listing broker owes fiduciary duties to:
AThe buyer they are working with
BThe seller (principal) through the listing brokerCorrect
CBoth buyer and seller equally
DNo one — subagency has been eliminated in Colorado
Why The seller (principal) through the listing broker Is Correct
Answer B: The seller (principal) through the listing broker
In traditional subagency, a subagent of the listing broker owes fiduciary duties to the seller (the principal), not to the buyer they assist. However, subagency has become uncommon in Colorado, replaced largely by buyer agency and transaction brokerage.
Key Colorado License Law Terms in This Question
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Key Terms to Know
Agency
A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
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.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
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.
Math Concepts
State-Specific Concepts
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