Colorado Sales License Practice Test

In Colorado real estate transactions, the most commonly used form of agency is seller's agency and buyer's agency. This structure allows for clear representation where each party has an agent dedicated to advocating for their interests. In seller's agency, the agent represents the seller’s interests, helping to market the property, negotiate deals, and ultimately ensure the seller achieves their goals. Conversely, in buyer's agency, the agent represents the buyer, helping them find suitable properties, advising on purchase options, and negotiating the best price and terms.

This way of structuring agency provides a straightforward and effective approach to real estate transactions by delineating roles and responsibilities for both buyers and sellers, thereby minimizing conflicts of interest. While dual agency does exist in Colorado, it is less common due to the complexities and potential conflicts that arise when one agent represents both the buyer and seller simultaneously. Independent agency maintains the same core principles, yet it is less prevalent in practice compared to the distinct buyer's and seller's agencies that dominate the market. Limited agency can also occur but is not as widely used as having dedicated representation for each side, making the seller's agency and buyer's agency approach the standard in the industry.