§ 12-10-405 — Single agent engaged by buyer or tenant

(1) A broker engaged
by a buyer or tenant to act as a buyer's or tenant's agent shall be a limited agent
with the following duties and obligations:

(a) To perform the terms of the written agreement made with the buyer or
tenant;

(b) To exercise reasonable skill and care for the buyer or tenant;

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

(I) Seeking a price and terms that are acceptable to the buyer or tenant;
except that the broker shall not be obligated to seek other properties while the
buyer is a party to a contract to purchase property or while the tenant is a party to a
lease or letter of intent to lease;

(II) Presenting all offers to and from the buyer or tenant in a timely manner
regardless of whether the buyer is already a party to a contract to purchase
property or the tenant is already a party to a contract or a letter of intent to lease;

(III) Disclosing to the buyer or tenant adverse material facts actually known
by the broker;

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

(V) Advising the buyer or tenant 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 buyer or tenant that the buyer or tenant shall not be
vicariously liable for the acts of the buyer's or tenant's agent that are not approved,
directed, or ratified by the buyer or tenant;

(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
buyer's or tenant's agent without the informed consent of the buyer or tenant:

(a) That a buyer or tenant is willing to pay more than the purchase price or
lease rate for the property;

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

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

(d) Any material information about the buyer or tenant 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 would
psychologically impact or stigmatize any real property pursuant to section 38-35.5-101.

(3) (a) A broker acting as a buyer's or tenant's agent owes no duty or
obligation to the seller or landlord; except that the broker shall disclose to any
prospective seller or landlord all adverse material facts actually known by the
broker including but not limited to adverse material facts concerning the buyer's or
tenant's financial ability to perform the terms of the transaction and whether the
buyer intends to occupy the property to be purchased as a principal residence.

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

(4) A buyer's or tenant's agent may show properties in which the buyer or
tenant is interested to other prospective buyers or tenants without breaching any
duty or obligation to the buyer or tenant. Nothing in this section shall be construed
to prohibit a buyer's or tenant's agent from showing competing buyers or tenants
the same property and from assisting competing buyers or tenants in attempting to
purchase or lease a particular property.

(5) A broker acting as a buyer's or tenant'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 statements
made by the seller, landlord, or independent inspectors; except that nothing in this
subsection (5) shall be construed to limit the broker's duties and obligations
imposed pursuant to subsection (1) of this section.

(6) A broker acting as a buyer's or tenant'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. 648, � 1, effective October 1.