Which brokerage relationship models are recognized in Colorado practice?

• A. Single Agency
• B. Dual Agency
• C. Single Agency, Designated Agency, and Transaction Broker
• D. Transaction Broker only

Answer: (C)

Colorado recognizes three brokerage relationship models: Single Agency, Designated Agency, and Transaction Broker. Single Agency means the brokerage represents only one party in the transaction (buyer or seller) and owes fiduciary duties to that client. Designated Agency allows two licensees within the same brokerage to represent each client separately—so each party has fiduciary duties from their designated licensee, while the brokerage overall remains neutral toward the other party. Transaction Broker is a non-representation arrangement where the broker assists both parties in completing the transaction but does not owe fiduciary duties to either party; duties center on fair dealing, disclosure of material facts, and honesty.

Dual Agency as a single licensee representing both sides isn’t how Colorado structures representation; the designated agency model provides the separate representation within the same firm. So the recognized models include all three: single agency, designated agency, and transaction broker.