What changed on August 12, 2026
For years, Colorado brokers needed a written agreement only to act as your agent. A transaction broker, who helps both sides without advocating for either, could work with you on a handshake. HB26-1426 ended that.
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 people they represent, and must do it before performing any licensed duties.
| Before August 12, 2026 | Now | |
|---|---|---|
| Broker as your agent | Written agreement required | Written agreement required |
| Transaction broker | No agreement required | Written agreement required |
| Broker's pay | Often only in a separate form | Clearly stated in the agreement |
What the agreement has to include
- Which relationship you have: the broker as your agent, or as a transaction broker
- Who the parties are and what the agreement covers
- How long it lasts
- What the broker will do for you
- The amount or rate of the broker's compensation, clearly disclosed, and when it is owed
A buyer's broker compensation form on its own is not enough. The Colorado Division of Real Estate says only a listing contract establishes the relationship.
What counts as licensed work
Needs the agreement first
- Representing you in a purchase, sale or lease
- Negotiating on your behalf
- Advising you on a specific deal
Does not
- Showing a property
- Holding an open house
- A comparative market analysis
What it means for you
Buying or leasing
Expect to sign an agreement before a broker starts working for you, even when the seller or landlord will pay the commission. Read which relationship it creates, how long it lasts and how the broker is paid.
Selling or leasing out
Your listing agreement already did this, but it now has to state the relationship and the compensation clearly. Brokers who bring you a buyer or tenant need their own agreement with that client.
Off market deals
A broker can no longer pass along an off market property or buyer without a written agreement that makes clear who they represent. Ask any broker who calls about your property who their client is.
How we handle it
Your agreement is ready in your Innovate client portal before we start. You read it there, approve it, and it goes straight to electronic signature. Every deal starts with the relationship and the compensation in writing.
This is a plain language summary, not legal advice. Source: Colorado Division of Real Estate broker advisory, August 12, 2026. Ask your attorney about your situation.
Common follow up questions
Does this law apply to commercial real estate?
Yes. It applies to licensed brokers in Colorado for buyers, sellers, landlords and tenants, residential or commercial.
Can a broker show me a property before I sign anything?
Yes. Showings and open houses are not licensed duties. Representing you, negotiating or advising you on a deal requires the written agreement first.
If the seller or landlord pays the commission, do I still sign?
Yes. The agreement establishes who the broker works for and must still disclose the compensation, even when someone else pays it.
When did HB26-1426 take effect?
August 12, 2026.
This page is general information, not lending, legal or tax advice. Programs, limits and terms change, and every situation is different. Talk with your lender, attorney and CPA before you decide.