Colorado changed an important part of the broker-client relationship in 2026. A written agreement is now required to establish either a transaction-broker or single-agency relationship before the broker begins the covered real estate work.
The old transaction-broker exception is gone
Previously, Colorado law generally treated a broker as a transaction-broker unless single agency was established in writing. The 2026 change requires a written agreement for either relationship. Buyers and sellers should now expect the relationship to be documented rather than assumed.
Compensation must be clear in the agreement
The updated law also requires the agreement to clearly state the amount or rate of compensation paid to the broker. Buyers and sellers should understand how their broker is compensated before the covered work begins, not discover the arrangement at the end of the transaction.
A written agreement is more than a compensation form
The brokerage agreement identifies the relationship, services, duties, term, compensation and other contractual expectations. Buyers and sellers should read the entire agreement and ask about any provision they do not understand before signing.
The goal is clarity earlier in the process
A buyer or seller should know whether the broker is a single agent or transaction-broker, what services are included, how long the agreement lasts and how compensation works before the covered work begins. That makes the relationship easier to evaluate and reduces ambiguity later.
The agreement is a legally binding contract. If a provision has important legal consequences or is unclear, the buyer or seller can seek advice from a Colorado attorney before signing.
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