Question: I am a licensed real estate agent. In addition to helping homeowners at night real estate, I help my owner clients manage their portfolios. As far as I know, the Colorado Real Estate Commission has created a form called the Brokerage Duties Addendum to Property Management Agreement. What is the purpose of this form and when should I use it? When to use the “Brokerage Duties Disclosure to Seller (REO and Non-CREC Approved Listing Agreements)” form? Many real estate agents want to have a single property management form that homeowners can sign; You do not want additional copies of the real estate management contract to be attached. As long as the broker includes all legal mentions in the manager`s property management contract, the broker is not required to use the separate addendum. A real estate administrator should not use the Commission`s form to document the entire agreement between the administrator and the lessor, since the endorsement is largely a disclosure form. It does not address the financial and other conditions of the relationship between the administrator and the owner. There was no culture to make such revelations to sellers or owners. This is because brokers generally do not invest much time with sellers or owners without getting a list contract. The Colorado Real Estate Commission has incorporated all necessary disclosures into the real estate commission`s sales and leasing contracts. As long as a listing broker uses a Colorado Real Estate Commission that has authorized a right to sell or a rights list contract, the broker is generally not required to provide additional information about the relationship with a seller or renter. There is a similar new form for the sale of real estate held (“REO”) by institutions called Brokerage Duties Disclosure to Seller (REO and Non-CREC Approved Listing Agreements).
While this form should be used primarily by brokers who list real estate acquired by financial institutions after a foreclosure, disclosure is useful when a broker lists real estate for an owner using a form that has not been approved by the Colorado Real Estate Board. This new form is particularly useful for commercial brokers, as commercial owners have little enthusiasm for the nuances of Colorado`s license fee. These institutions tend to use their own list forms that do not have the necessary information. Part of the wisdom of the reo form is that the Commission knows that brokers cannot compel owners to sign disclosures. With the broker`s confirmation at the end of the form or by sending the form to clients by certain means that leave a trace of paper (such as a fax or email), brokers can easily fulfill their legal disclosure obligations. However, the Real Estate Commission has not entered into a property management contract, as there is a huge diversity in documenting the relationship between property managers and their clients. The Commission created the Brokerage Duties Addendum to Property Management Agreement (with the form number BDA55-04-05) so that brokers would have a form to add a property management agreement to fulfill the real estate agent`s legal disclosure obligations. The Commission does not create new advertising obligations; it tries to help brokers make the revelations they have already had to make.
This new form contains many provisions that are important for the parties to discuss when entering into an asset management agreement. The addendum distinguishes between the rental agency and the transaction intermediation. It lists the joint duties of agents and transaction agents in uniform customs duties to be found in Section 3.a. It mentions the additional duties of an agent in Section 4.