Have a Question about Real Estate? Send Us a Message!

In Colorado a Real Estate Broker can work with a consumer as (1) a Seller's Agent, (2) a Buyer's Agent, (3) a Transaction Broker or (4) serve the consumer as a Customer. 

In Colorado the Division of Real Estate issues a Broker license to all active real estate licensees.  When a Broker is serving a client as either a Seller's Agent or a Buyer's agent, by establishment of a written Agency Contract, that Broker is an Agent for that client. An Agent can Counsel and Advocate for a Client.  A Transaction Broker cannot counsel a client and must remain "neutral" in fulfilling duties to a client. Agency and Transaction Broker status is defined by Colorado Statute.  While serving a consumer as a Customer a Broker can only provide ministerial duties and essentially act as a scrivener for the Customer.

A REALTOR is a Broker that has joined the National Association of REALTORS, the Colorado Association of REALTORS, and a local Board of REALTORS. The National Association of REALTORS is a professional membership organization founded in 1908. A REALTOR pledges to perform his or her duties in strict adherence to a Professional Code of Ethics that exceeds the statutory duty requirements. All REALTORS are licensees, not all licensees are REALTORS.

The most common form of Broker/Agent compensation is a Success Fee (commission percentage of the sales price).  That fee is established by the Seller and Listing Agent/Broker.  Part of that fee is retained by the Listing (Seller's) brokerage firm and part of it is paid to the Selling (Buyer's) brokerage firm.  The firms then split that Success Fee (commission) with the individual Brokers based on each firm's compensation model.

Colorado statute also permits other forms of compensation such as hourly fees, retainer fees, and other specifically defined fees (project fee, flat fee, etc.). Although much less common than the Success Fee described above these alternate compensation forms do occur on occasion.