Colorado DORA Brokerage Disclosure to Buyer

What is the Brokerage Disclosure to Buyer?

The Brokerage Disclosure to Buyer is a form whose printed portions have been approved by the Colorado Real Estate Commission. It tells a buyer what working relationship a real estate broker has with them. The form states that different brokerage relationships are available, which include seller agency, buyer agency or transaction-brokerage, and that the broker and the buyer named in it have not entered into a buyer agency agreement. It also states: "THIS BROKERAGE DISCLOSURE TO BUYER IS NOT A CONTRACT. IT IS BROKER'S DISCLOSURE OF BROKER'S WORKING RELATIONSHIP."

The blank on this page is marked "(BDB24-8-24) (Mandatory 8-24)" and has three pages.

Working relationships defined on the form

The form defines four terms: seller's agent, buyer's agent, transaction-broker and customer. A seller's agent works solely on behalf of the seller and a buyer's agent solely on behalf of the buyer. A transaction-broker assists the buyer or seller or both throughout a real estate transaction without being an agent or advocate for any of the parties. A customer is a party to a real estate transaction with whom the broker has no brokerage relationship.

What is filled in?

The working relationship is given for a specific property, or for real estate that substantially meets requirements written on the form. The form then has two sets of boxes, each marked "CHECK ONE BOX ONLY":

• the firm: a multiple-person firm or a one-person firm;
• the relationship: "Customer", "Customer for Broker's Listings – Transaction Brokerage for Other Properties" or "Transaction Brokerage Only". Under "Customer" the broker also marks whether it is the seller's agent or the seller's transaction-broker and which tasks it intends to perform.

The form carries printed provisions that need no entry: the buyer's consent to the broker sharing the buyer's confidential information with the supervising broker or designee for the purpose of proper supervision, on condition that it is not disclosed further without the buyer's consent or used to the buyer's detriment, a disclosure of settlement service costs, and, for a residential transaction, a provision headed "MEGAN'S LAW".

Acknowledgments

In the buyer acknowledgment the buyer acknowledges receipt of the document on a date. In the broker acknowledgment the broker records the date the document was provided to the buyer and how, and that the broker retained a copy for the broker's records.

Page 3: Buyer's Broker's Compensation Agreement

The third page is headed "BUYER'S BROKER'S COMPENSATION AGREEMENT". It states that compensation charged by brokerage firms is not set by law and is fully negotiable. In it the buyer agrees that the brokerage firm will be paid a fee, entered as a percentage of the purchase price or as a dollar amount, for the services of the buyer's broker as the buyer's transaction-broker. The page sets out when that fee is earned and payable and from whom the broker requests payment. The buyer is obligated to pay any portion of the fee that the seller's brokerage firm or the seller does not pay, but only if the broker disclosed that amount to the buyer in writing before the buyer entered into a contract with the seller. The page is signed and dated by the buyer and the broker.

What changed on August 12, 2026?

A Real Estate Broker Advisory sent by the Colorado Department of Regulatory Agencies on August 12, 2026 says that from that date section 12-10-403, C.R.S., as changed by HB26-1426, requires a broker to establish either a transaction-broker or a single-agency relationship through a written agreement with the party the broker represents. The advisory states: "the Buyer's Broker's Compensation Agreement located at the end of the Broker's Disclosure to Buyer is not sufficient to establish a brokerage relationship." It adds: "Only a Listing Contract is sufficient to establish a relationship in writing and to comply with HB26-1426."