What does the term co-brokerage refer to in Colorado real estate transactions?

• A. A single broker handling both sides of a deal.
• B. An arrangement where two brokerages collaborate on a transaction and split commissions.
• C. A transaction that bypasses broker involvement.
• D. A franchise agreement between two brokerages.

Answer: (B)

Co-brokerage means two separate real estate brokerages work together on one transaction and split the commission between them. In Colorado, one firm typically represents the seller and another firm represents the buyer, and both cooperate to complete the deal. The exact split is set by the agreements in place (often reflected in the MLS listing and the buyer’s representation contract). This arrangement ensures each side has licensed representation from a different brokerage, and it’s distinct from one broker handling both sides or from bypassing broker involvement.