In a recent letter to the Colorado Association of Realtors CEO Tyrone Adams, Marcia Waters, director of the real estate division within the Colorado Department of Regulatory Agencies, expressed concerns about the practice of requiring potential home buyers to sign an agreement with a real estate agent before viewing a property. Waters highlighted that a real estate license is not needed to show a property in Colorado, and such agreements are not a prerequisite for a property tour. She further noted that a real estate broker is entitled to commission only when a home buyer is “ready, willing, and able to complete the purchase of real estate” and the home seller has agreed.
Waters emphasized that mandatory buyer agency agreements, particularly those implying or demanding compensation, do not align with consumer protection regulations. She stated that these agreements do not meet the criteria for when a broker is entitled to a commission and are not in line with the duties of a licensed real estate professional. The Division has “significant concerns” about these agreements, as they do not seem to prioritize consumer interests. Waters believes that consumers should be allowed to evaluate the qualifications of a real estate professional before committing to a binding agreement with a broker.