Relationships with a Buyer: *** locally, we are required to make a full and timely disclosure of all “material facts”


The term material facts and associated disclosure requirements have been incorporated in our regulations and are defined as "any fact" that would affect a reasonable person’s decision to acquire or dispose of an interest in real property.

There is the requirement that a Salesperson or broker in a CLIENT relationship must take reasonable steps to determine such facts in relation to an acquisition or disposition of real estate and disclose this information as soon as practically possible to the client.

The responsibility to a CUSTOMER is similar, but the obligations only extends to facts known by, or ought to have been known, by the salesperson or broker.

Further, A related person, is defined as one person associated with another as an Associated Person, or one person is related to the other by blood, adoption or conjugal relationship.

The authorities swing a very wide net with respect to these situations and one should try and avoid being caught in their net,their rules, and how they chose to interpret their rules i.e. An Ounce of Prevention, etc.

Important Notice: This information is provided as basic educational information by the author and is not a substitute for the advice of an expert and/or the advice of a lawyer. There is NO representation as to legality, accuracy, correctness of the herein information and the reader is strongly urged to consult a lawyer in the relevant jurisdiction to ensure accuracy before acting on this information .

FYI (but not to confuse the issue more), for our State (Colorado) a "Client" is always someone who works with a REALTOR, regardless of relationship (Agent or Transaction Broker), whereas the other REALTORS consumer is called a "Customer".