Real Estate Term of the Day: Buyer’s Broker
BUYER’S BROKER – an agent hired by a prospective purchaser to find an acceptable property for purchase. The broker then represents the buyer and negotiates with the seller in the purchaser’s best interest (Barron’s Dictionary of Real Estate Terms)
In the State of Colorado, buyer brokers (or buyer agents) have additional duties that are owed to the buyers. In the Colorado Brokerage Disclosure to Buyer document a buyer’s broker (buyer’s agent) is defined as: A buyer’s agent works solely on behalf of the buyer to promote the interests of the buyer with the utmost good faith, loyalty and fidelity. The agent negotiates on behalf of and acts as an advocate for the buyer. The buyer’s agent must disclose to potential sellers all adverse material facts actually known by the buyer’s agent, including the buyer’s financial ability to perform the terms of the transaction and, if a residential property, whether the buyer intends to occupy the property. A separate written buyer agency agreement is required which sets forth the duties and obligations of the broker and the buyer.
Furthermore, the Colorado Exclusive Right-To-Buy Listing Contract sets forth all duties to be fulfilled by the buyer’s broker. This is the legal document that forms the relationship between buyer and buyer broker (buyer’s agent).