§ 12-10-407 — Transaction-broker

(1) A broker engaged as a transaction-broker is not an agent for either party.

(2) A transaction-broker shall have the following obligations and
responsibilities:

(a) To perform the terms of any written or oral agreement made with any
party to the transaction;

(b) To exercise reasonable skill and care as a transaction-broker, including,
but not limited to:

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

(II) Advising the parties regarding the transaction and suggesting that the
parties obtain expert advice as to material matters about which the transaction-broker knows but the specifics of which are beyond the expertise of the broker;

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

(IV) Keeping the parties fully informed regarding the transaction;

(V) Assisting the parties in complying with the terms and conditions of any
contract including closing the transaction;

(VI) Disclosing to all prospective buyers or tenants any adverse material
facts actually known by the broker including but not limited to adverse material
facts pertaining to the title, the physical condition of the property, any defects in
the property, and any environmental hazards affecting the property required by law
to be disclosed;

(VII) Disclosing to any prospective seller or landlord all adverse material
facts actually known by the broker including but not limited to adverse material
facts pertaining to the buyer's or tenant's financial ability to perform the terms of
the transaction and the buyer's intent to occupy the property as a principal
residence; and

(VIII) Informing the parties that as seller and buyer or as landlord and tenant
they shall not be vicariously liable for any acts of the transaction-broker;

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

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

(3) The following information shall not be disclosed by a transaction-broker
without the informed consent of all parties:

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

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

(c) What the motivating factors are for any party buying, selling, or leasing
the property;

(d) That a seller, buyer, landlord, or tenant will agree to financing terms
other than those offered;

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

(f) Any material information about the other party unless disclosure is
required by law or failure to disclose the information would constitute fraud or
dishonest dealing.

(4) A transaction-broker has no duty to conduct an independent inspection
of the property for the benefit of the buyer or tenant and has no duty to
independently verify the accuracy or completeness of statements made by the
seller, landlord, or independent inspectors.

(5) A transaction-broker has no duty to conduct an independent investigation
of the buyer's or tenant's financial condition or to verify the accuracy or
completeness of any statement made by the buyer or tenant.

(6) A transaction-broker may do the following without breaching any
obligation or responsibility:

(a) Show alternative properties not owned by the seller or landlord to a
prospective buyer or tenant;

(b) List competing properties for sale or lease;

(c) Show properties in which the buyer or tenant is interested to other
prospective buyers or tenants; and

(d) Serve as a single agent or transaction-broker for the same or for different
parties in other real estate transactions.

(7) There shall be no imputation of knowledge or information between any
party and the transaction-broker or among persons within an entity engaged as a
transaction-broker.

(8) A transaction-broker may cooperate with other brokers but shall not
engage or create any subagents.

Legislative History

Source: L. 2019: Entire title R&RE with relocations, (HB 19-1172), ch. 136, p. 650, � 1, effective October 1.