Before you read
Test yourself first: 5 questions
Question 1 of 5
Under Colorado law, if a broker works with a buyer or seller without entering a written agency agreement, what is the default relationship presumed?
Answer: C. Colorado's default working relationship is transaction-broker, in which the broker assists the parties without being an advocate or agent for either. A broker must take affirmative steps and a written agreement to become a single agent; dual agency is prohibited in Colorado.
Question 2 of 5
When a brokerage relationship is not specified in writing, what is the DEFAULT relationship a Colorado licensee has with a party to a transaction?
Answer: C. In Colorado, the default working relationship is transaction-broker, in which the licensee assists the party without being an advocate or agent. To create an agency relationship, the broker must establish it in writing; absent that, transaction-brokerage applies.
Question 3 of 5
Under Colorado law, what is the DEFAULT brokerage relationship when a broker works with a buyer or seller without a written agreement establishing single agency?
Answer: C. Colorado's default relationship is transaction-broker. A broker assists a party in the transaction without being that party's agent or advocate unless single agency is established in writing.
Question 4 of 5
In Colorado, when a broker has NOT entered into a written agency or transaction-brokerage agreement with a party, what is the broker's default relationship to that party under the Brokerage Relationships Act?
Answer: A. Colorado's default brokerage relationship is transaction-broker. Unless a broker establishes a single-agency relationship in writing, the broker is presumed to be acting as a transaction-broker, who facilitates the transaction without being an advocate or fiduciary for either party.
Question 5 of 5
When a Colorado broker establishes a single-agency relationship with a seller, that relationship must be:
Answer: A. To act as a single agent (rather than the default transaction-broker), the broker must establish that relationship through a written agreement. Without a signed agency agreement, the broker is presumed to be a transaction-broker.
Keep the streak going with more questions like these, each with a full rationale.
What you need to know
A broker may instead become a single agent for the buyer or the seller, but this requires a written agreement establishing that agency relationship. Critically, dual agency (representing both buyer and seller as an agent in the same transaction) is prohibited in Colorado; when one firm works with both parties, it must do so as a transaction-broker rather than as a dual agent.
Colorado's Transaction-Broker Default and the Dual Agency Prohibition: FAQs
Is Colorado's Transaction-Broker Default and the Dual Agency Prohibition on the real estate exam?
Yes. State License Law is a scored domain on the Colorado real estate licensing exam, and this topic appears in the state license-law portion.
Is this cheat sheet free?
Yes — every page on Cinna RE's resource library is free to read, print and share. The app adds practice questions, mock exams and a readiness score.
Does Colorado test this differently?
Colorado applies its own license law on top of the national portion. This page covers the Colorado rules specifically, which is what the state section of your exam tests.
