Buyer Agency Agreements in Colorado: What You’re Signing and Why It Matters

The short answer

A buyer agency agreement is a written contract between you and a real estate brokerage that spells out who your broker is, what kind of relationship you have, what the broker will do for you, how long the agreement runs and how the brokerage gets paid. In Colorado, the standard version is the Colorado Real Estate Commission’s Exclusive Right-to-Buy Listing Contract (form BC60), which has been mandatory for brokers using the Commission’s forms since January 1, 2026. As of August 12, 2026, state law also says a broker must have a written agreement in place before performing licensed brokerage work for you, and that agreement has to clearly state the amount or rate of the broker’s compensation.

What changed in Colorado in 2026

For years, Colorado brokers worked under a simple default. A written agreement was required to act as your agent, but a broker could work with you as a transaction-broker without one. That changed on August 12, 2026, when House Bill 26-1426 took effect. The amended statute, section 12-10-403 of the Colorado Revised Statutes, now says a broker must establish either a transaction-broker or a single-agency relationship through a written agreement with the person being represented. The agreement must “specify and conspicuously disclose the amount or rate of any compensation,” and it has to be completed before the broker performs licensed brokerage activities.

The Colorado Division of Real Estate also made a few practical points in its August 2026 advisory to brokers that are useful for buyers to know:

• Not every activity needs an agreement. The Division noted that showing a property, holding an open house and preparing a comparative market analysis are not licensed duties on their own.
• A compensation page isn’t enough. The short Buyer’s Broker’s Compensation Agreement at the end of the Broker’s Disclosure to Buyer says what you’ll pay, but the Division says it does not establish a relationship. A listing contract such as the Exclusive Right-to-Buy Listing Contract does.
• Builder contracts get extra attention. The same bill requires a broker who represents you to advise you to get legal advice before you sign a purchase contract that a builder, bank or other party requires you to use. That matters if you’re shopping new construction south of Denver.

There’s also a national layer. Since August 17, 2024, under the National Association of Realtors settlement, agents who are Realtors and MLS participants have generally asked buyers to sign a written agreement before touring a home with them, in person or virtually. Visiting an open house on your own, or simply asking an agent about their services, doesn’t require one.

The state’s standard form, section by section

The BC60 form is seven pages long, and the first lines are printed in capital letters for a reason: “This is a binding contract,” and the parties “should consult legal and tax or other counsel before signing.” Here are the parts buyers ask me about most:

• The property (section 3.4). You describe the kind of real estate you’re looking for. It can be broad or narrow.
• The listing period (section 3.6). The start date and the end date of the agreement, which you agree on together.
• Compensation (section 7). How much the brokerage is paid, when it’s earned and who pays it. More on this below.
• Your obligations (section 9). You agree to negotiate through your broker and to pass along any contact you get from other brokers or sellers during the agreement.
• Showing access (section 14.2). Your broker explains how sellers show their homes and lists any limits on the broker’s access, along with the MLS and property information services the brokerage uses.
• Additional provisions (section 23). Any custom terms you and your broker agree to. These aren’t approved by the Commission, so read them carefully.

If you’re a private buyer, also look at section 15, which decides whether your broker may share your identity with third parties.

Buyer agency or transaction-brokerage

At the top of the first page there are two boxes: Buyer Agency and Transaction-Brokerage. Which one is checked changes what your broker owes you.

• Buyer agency makes the broker your limited agent. On top of the basic duties every broker owes, a buyer’s agent must promote your interests “with the utmost good faith, loyalty, and fidelity,” seek a price and terms that are acceptable to you and counsel you on the material benefits or risks of a deal that the broker actually knows about.
• Transaction-brokerage means the broker helps the deal happen without being an advocate or agent for either side. If neither box is checked, the form says the broker works with you as a transaction-broker.

Section 4.3 also covers what happens if the broker you’re working with is also working with the seller of a home you want. Under the buyer agency option, the broker can deliver a written Change of Status and continue as a transaction-broker, unless you checked the “Buyer Agency Only” box. If you want an advocate on your side no matter what, talk through that box before you sign.

What your broker owes you either way

Section 5 lists the duties a broker owes you under either relationship. Your broker must use reasonable skill and care, including presenting all offers to and from you in a timely way, telling you about adverse material facts the broker actually knows, advising you to get expert help on matters outside the broker’s expertise, accounting for any money received and keeping you fully informed.

Your broker also can’t share certain things without your informed consent: that you’re willing to pay more than you offered, what’s motivating your move, that you’d accept different financing terms, or other material information about you unless the law requires it. That confidentiality is a big part of why the agreement matters when you’re negotiating on a home you love.

The form is also candid that your broker can show the same homes to other buyers and has no duty to inspect the property or verify what the seller says, which is why your own inspection matters. My luxury home inspection checklist covers what to look at before your deadline.

How compensation works

The most important sentence on the form is printed near the top: “Compensation charged by brokerage firms is not set by law and is fully negotiable.” Section 7 gives several ways to structure it:

• A success fee, written as a percentage of the purchase price or a flat dollar amount, earned when you buy and paid at closing.
• An hourly fee up to a stated maximum.
• A retainer paid at signing, which may or may not be credited against other fees.
• Other compensation you and the brokerage agree on.

Section 7.3 answers the question everyone asks: who actually pays? There are two options. Under the first, your broker is authorized to ask the seller or the seller’s brokerage to pay the fee, and you owe only the part they don’t pay, but only if your broker tells you that amount in writing before you sign a contract on the home. Under the second, you agree to pay the fee yourself. If no box is checked, the first option applies.

The form also protects you from surprises. Your brokerage can’t accept extra compensation, bonuses or incentives from the seller’s side unless you approve it in writing. If a deal falls apart because the seller defaults and you did nothing wrong, the success fee is waived. If it falls apart because of your default, the fee is not waived. This is one reason contract deadlines matter so much.

Asking the seller to cover compensation is part of the offer negotiation, alongside price, seller concessions and earnest money. It also changes your cash to close, so I run the numbers with my buyer closing cost calculator (see the closing cost guide).

How long a buyer agency agreement lasts

There’s no length set by the form. The listing period starts on the date you write in and runs until the earlier of the purchase or the end date you choose, plus any written extensions. You can make it short while you get to know an agent, or longer if you’re relocating and your search will take time. Relocating? See my Denver relocation guide.

You can also narrow the scope instead of the time. Because section 3.4 describes the property, an agreement can cover a single neighborhood, a single city or even one specific home you want to tour. That’s a reasonable way to start working with someone new.

The holdover clause, explained

Section 7.4 creates a holdover period, a set number of days after the agreement ends. If you buy a home during that window that your broker negotiated on and submitted to you in writing during the agreement, the brokerage’s fee can still apply.

There’s an important check box here. It decides whether you’d still owe the fee if you sign a new exclusive agreement with a different brokerage during the holdover period and buy one of those submitted homes. If neither box is checked, the form says you don’t owe the original brokerage’s fee in that situation. Ask your broker to show you exactly how this section is filled in.

Changing or ending the agreement

The BC60 calls itself an exclusive, irrevocable contract, so it isn’t something you can simply walk away from. But it isn’t a trap either:

• Changes in writing. You and your broker can change any term, including the end date or the property, as long as the change is in writing and signed by both of you (section 27).
• If your broker doesn’t perform. If the broker fails to substantially perform, you can cancel by written notice that explains why (section 12.1).
• If you don’t cooperate. The brokerage can cancel too, and its damages may include the compensation it would have earned (section 12.2).
• Disputes. Both sides agree to try mediation first (section 21).

Questions to ask before you sign

1. Is this buyer agency or transaction-brokerage, and is the “Buyer Agency Only” box checked?
2. How much is the compensation, how is it calculated and when is it due?
3. Will you ask the seller to pay it, and how will you tell me in writing if I owe any part of it?
4. What are the start and end dates, and can we start with a shorter period?
5. What property or area does the agreement cover?
6. How many holdover days are there, and how is the holdover box checked?
7. Are there any additional provisions or retainer fees?
8. What will you do for me during the search, and how will you get me into homes?

How I work with buyers

I grew up in Castle Rock, and I help luxury buyers and sellers across Denver, Lakewood, Castle Pines, Highlands Ranch, Parker, Castle Rock, Broomfield, Elizabeth and Colorado Springs. I work with Sean Gribbons at The Gold Standard Brokerage; Sean founded the brokerage, and we run it together. Before you sign anything with me, I’ll go through the agreement line by line, explain how I’m paid and fill it in to match how you want to buy.

Getting started? See my guides to buying a luxury home in Denver and buying a home in Denver, Highlands Ranch, Parker, Castle Rock, Castle Pines and Lakewood, or explore Broomfield and Colorado Springs. You can check your budget with my home affordability calculator. Selling first? See my page for selling a house in Denver and my guide to buying and selling at the same time. You can also book a consultation, call or text me at 720-357-5785, or use the inquiry form on this page.

This guide is general information, not legal or tax advice. Section references are to the Colorado Real Estate Commission’s BC60 Exclusive Right-to-Buy Listing Contract (mandatory use date January 1, 2026) and to section 12-10-403, C.R.S., as amended by HB26-1426 (effective August 12, 2026). The agreement you sign, including any additional provisions, controls your relationship with your broker.