Under Colorado law, 'dual agency' as it exists in many states is:
Why Not recognized; Colorado uses the transaction broker model instead Is Correct
Answer B: Not recognized; Colorado uses the transaction broker model instead
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.
Key Agency Terms in This Question
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Related Colorado Questions
- Under Colorado law, which term describes a broker who assists both the buyer and seller in a transaction without representing either as an agent?Agency
- In Colorado, if a buyer and seller both consent in writing, a broker may act as a 'dual agent.' In a dual agency, the broker:Agency
- In Colorado, a broker acting as a 'transaction broker' is sometimes described as providing 'limited representation' because:Agency
- In Colorado, a 'transaction broker' owes which of the following duties to the parties?Agency
Key Terms to Know
A situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
AgencyA legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Deed of TrustA security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.
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.
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