Which statement about Colorado brokerage disclosures is true?

Which statement about Colorado brokerage disclosures is true?

• A. Disclosures are optional
• B. A written brokerage disclosure must be provided to avoid transaction-broker status
• C. Disclosures are only needed for commercial properties
• D. Disclosures must be provided only to the buyer

Answer: (B)

Colorado requires licensees to give a written disclosure of the brokerage relationship at the first substantive contact with a consumer. This disclosure explains how the broker will represent the party—whether as a single agent with fiduciary duties to that client or as a transaction broker who facilitates the deal without fiduciary duties to either side. If no written disclosure is provided, the broker is presumed to be a transaction broker by default. Providing the written disclosure allows the parties to establish the intended relationship and avoid that default status. This requirement applies to both residential and commercial transactions and is given to the party engaging the broker as the client.

Colorado requires licensees to give a written disclosure of the brokerage relationship at the first substantive contact with a consumer. This disclosure explains how the broker will represent the party—whether as a single agent with fiduciary duties to that client or as a transaction broker who facilitates the deal without fiduciary duties to either side. If no written disclosure is provided, the broker is presumed to be a transaction broker by default. Providing the written disclosure allows the parties to establish the intended relationship and avoid that default status. This requirement applies to both residential and commercial transactions and is given to the party engaging the broker as the client.