Agency

When a Colorado buyer's agent and listing agent work for the same employing broker but on opposite sides of a transaction, this creates potential for what situation?

ANo conflict since they work for the same firm
BAn in-house (or in-firm) transaction requiring the employing broker to address potential conflicts through designated brokerage✓ Correct
CAutomatic dual agency requiring both parties' consent
DA violation requiring withdrawal from the transaction

Explanation

When two agents from the same brokerage represent both sides of a transaction, it creates an in-firm situation. Colorado addresses this through designated brokerage, where different agents are specifically designated to represent each party to avoid conflict.

Related Colorado Agency Questions

Practice More Colorado Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Colorado Quiz →