Real Estate Conflicts of Interest
With the passage of the Brokerage Relationships Act in Colorado, a traditional brokerage firm MIGHT TELL YOU that they can assign an agent to represent you as a Buyer Broker.
What the traditional brokerage firm won’t tell you is that this “assigned” broker is by law, isolated from most of the rest of the firm. This means that this agent can’t rely on the advice or help of more experienced brokers, or their employing broker.
Will you be able to rely on this part-time “defined” buyer broker during difficult negotiations?
Something to be aware of is that if you are interested in real estate in Denver that is listed by your agent, your agent will give you a Change of Status Transaction-Broker Disclosure form. This means that after obtaining all of your private and confidential information, your agent is now changing from your or “assigned” buyer broker to a Transaction-Broker, and you just gave up your right to be represented.
The problem is, you won’t even have a choice, because your approval is not required for the Change of Status Transaction-Broker Disclosure form. You, the consumer, should be able to choose how you are represented.
Only with an Exclusive Buyer’s Agent do you not have to worry about this situation ever happening.