§ 12-10-404 — Single agent engaged by seller or landlord

(1) A broker
engaged by a seller or landlord to act as a seller's agent or a landlord's agent is a
limited agent with the following duties and obligations:

(a) To perform the terms of the written agreement made with the seller or
landlord;

(b) To exercise reasonable skill and care for the seller or landlord;

(c) To promote the interests of the seller or landlord with the utmost good
faith, loyalty, and fidelity, including, but not limited to:

(I) Seeking a price and terms that are acceptable to the seller or landlord;
except that the broker shall not be obligated to seek additional offers to purchase
the property while the property is subject to a contract for sale or to seek additional
offers to lease the property while the property is subject to a lease or letter of
intent to lease;

(II) Presenting all offers to and from the seller or landlord in a timely manner
regardless of whether the property is subject to a contract for sale or a lease or
letter of intent to lease;

(III) Disclosing to the seller or landlord adverse material facts actually known
by the broker;

(IV) Counseling the seller or landlord as to any material benefits or risks of a
transaction that are actually known by the broker;

(V) Advising the seller or landlord to obtain expert advice as to material
matters about which the broker knows but the specifics of which are beyond the
expertise of the broker;

(VI) Accounting in a timely manner for all money and property received; and

(VII) Informing the seller or landlord that the seller or landlord shall not be
vicariously liable for the acts of the seller's or landlord's agent that are not
approved, directed, or ratified by the seller or landlord;

(d) To comply with all requirements of this article 10 and any rules
promulgated pursuant to this article 10; and

(e) To comply with any applicable federal, state, or local laws, rules,
regulations, or ordinances including fair housing and civil rights statutes or
regulations.

(2) The following information shall not be disclosed by a broker acting as a
seller's or landlord's agent without the informed consent of the seller or landlord:

(a) That a seller or landlord is willing to accept less than the asking price or
lease rate for the property;

(b) What the motivating factors are for the party selling or leasing the
property;

(c) That the seller or landlord will agree to financing terms other than those
offered;

(d) Any material information about the seller or landlord unless disclosure is
required by law or failure to disclose the information would constitute fraud or
dishonest dealing; or

(e) Any facts or suspicions regarding circumstances that may
psychologically impact or stigmatize any real property pursuant to section 38-35.5-101.

(3) (a) A broker acting as a seller's or landlord's agent owes no duty or
obligation to the buyer or tenant; except that a broker shall, subject to the
limitations of section 38-35.5-101, concerning psychologically impacted property,
disclose to any prospective buyer or tenant all adverse material facts actually
known by the broker. The adverse material facts may include but shall not be
limited to adverse material facts pertaining to the title and the physical condition of
the property, any material defects in the property, and any environmental hazards
affecting the property that are required by law to be disclosed.

(b) A seller's or landlord's agent owes no duty to conduct an independent
inspection of the property for the benefit of the buyer or tenant and owes no duty to
independently verify the accuracy or completeness of any statement made by the
seller or landlord or any independent inspector.

(4) A seller's or landlord's agent may show alternative properties not owned
by the seller or landlord to prospective buyers or tenants and may list competing
properties for sale or lease and not be deemed to have breached any duty or
obligation to the seller or landlord.

(5) A designated broker acting as a seller's or landlord's agent may
cooperate with other brokers but may not engage or create any subagents.

Legislative History

Source: L. 2019: Entire title R&RE with relocations, (HB 19-1172), ch. 136, p. 647, � 1, effective October 1.