Colorado’s Written Brokerage Agreement Law: What Buyers, Sellers, and Agents Need to Know
For years, a Colorado real estate broker could start working with a buyer by handing over a disclosure form. If nothing else was signed, the broker was treated as a transaction-broker by default. As of August 12, 2026, that default is gone.
A new state law, House Bill 26-1426, now requires a written agreement between a broker and the person they will work for before the broker starts doing brokerage work. The agreement must clearly state how much the broker will be paid. This article explains what changed, what didn’t, and what buyers, sellers, and agents should do about it.
What the law says
HB26-1426 is a large bill from the Colorado Department of Law that touches many areas of state law. Two of its sections matter for real estate brokerage:
Written agreement required (C.R.S. 12-10-403(2)). A broker must establish either a transaction-broker or a single-agency relationship "through a written agreement" with the party or parties the broker will represent. The agreement must "specify and conspicuously disclose the amount or rate of any compensation" to be paid to the broker. And the broker must complete it before performing brokerage activities listed in C.R.S. 12-10-201(6)(a), such as buying, selling, leasing, listing, or negotiating for someone.
Nonstandard purchase contracts (new C.R.S. 12-10-408.5). When a builder, a bank, or another party to the deal requires its own purchase contract instead of a Colorado Real Estate Commission form, the broker must advise the consumer to get legal advice from a licensed attorney before signing it.
The act took effect August 12, 2026. It applies to Colorado licensed real estate brokers. It does not change federal law or the NAR settlement rules discussed below.
What actually changed
Before August 12, 2026: A broker who hadn’t signed an agency agreement with a buyer was considered a transaction-broker by default. Many buyer relationships started with only the Brokerage Disclosure to Buyer form.
Now: There is no default. The relationship, whether transaction-broker or single agent, has to be set up in a written agreement first, with the broker’s pay stated clearly.
The Colorado Division of Real Estate (DRE) has said the Commission’s approved listing contracts satisfy the requirement, including the Exclusive Right-to-Buy Listing Contract for buyers. The DRE has also said the Buyer’s Broker Compensation Agreement alone is not enough, because it covers pay but doesn’t establish the relationship.
This applies to sellers, landlords, and tenants as well as buyers. Listing a home for sale or for rent was already done under a written listing contract in most cases. The new part is the requirement to state the compensation conspicuously and to have the agreement in place before the work starts.
What didn’t change
Commissions are still negotiable. The law requires disclosure of the amount or rate. It doesn’t set one.
Dual agency is still prohibited in Colorado. A broker still can’t be a single agent for both buyer and seller in the same deal (Commission Rule 6.7).
Customer status still exists. A broker can work with someone who isn’t their client, for example the buyer on the other side of a listing, as a "customer." Customers aren’t represented, so the written-agreement requirement is aimed at the people a broker represents.
Disclosure timing rules still apply. Under Commission Rule 6.5, brokers must still give the brokerage disclosure form at the earliest reasonable opportunity and before asking about or discussing confidential information.
Can an agent show a home without a signed agreement?
Under Colorado law, generally yes. The DRE’s August 2026 advisory says licensed duties "do not include showings, holding open houses, or completing Comparative Market Analyses." So under the Division’s reading, a broker can show a home, host an open house, or prepare a CMA before the written agreement is signed.
There are two important limits:
Confidential information. If the conversation moves to a buyer’s motivation or financial qualifications, such as a loan approval amount or why they need to move by a certain date, the broker must provide the brokerage disclosure first. Small talk about price range, neighborhoods, or home styles doesn’t trigger it.
The NAR settlement. Separate from state law, brokers who are participants in a Realtor-affiliated MLS must have a written agreement with a buyer before touring a home, in person or by live virtual tour. That rule has applied since August 17, 2024. Walking into an open house on your own doesn’t require one.
So in practice, most buyers working with an MLS-member agent will sign something before the first tour. The difference now is that, under state law, whatever you sign to start real brokerage work has to establish the relationship and state the pay.
The showing exception is the DRE’s interpretation of the statute. No Colorado court has ruled on it yet, and the Division could update its guidance.
What this means for buyers
Expect to sign an agreement early. Before an agent writes an offer, negotiates, or starts advising you on a purchase, you should have a written agreement.
Look for the compensation terms. The law requires them to be conspicuous. If you can’t find the amount or rate quickly, ask.
Check the length and the exit terms. How long does the agreement last? Can either side end it early, and what happens to fees if you buy a home you saw during the term?
Know the relationship. The agreement should say whether the broker is your single agent (your advocate) or a transaction-broker (a neutral facilitator).
Builder contracts. If you’re buying new construction on a builder’s own contract, your broker must now advise you to have an attorney review it. Builder contracts often handle deposits, delays, and warranties very differently from the standard Colorado form, which affects the deadlines and earnest money protections you might expect.
What this means for sellers and landlords
Read the compensation section before listing. It should state what you’ll pay your own broker and how any offer of compensation to a buyer’s broker will work.
Watch for cancellation terms. Section 12-10-408.5 also says that if a broker contract includes a one-sided cancellation clause in the broker’s favor, it must be clearly and conspicuously disclosed.
Rentals are included. Leasing and tenant-placement work are brokerage activities under C.R.S. 12-10-201(6)(a), so the written-agreement rule applies to them too.
What this means for agents
Sign first, then do brokerage work. Get the written agreement completed before you negotiate, write an offer, or give advice for a client. The Exclusive Right-to-Buy, Exclusive Right-to-Sell, Exclusive Right-to-Lease, and Exclusive Tenant listing contracts are the Commission-approved options.
Don’t rely on the compensation agreement alone. Under the DRE’s guidance, the Buyer’s Broker Compensation Agreement doesn’t establish a relationship.
Keep the disclosure habit. Give the brokerage disclosure before a buyer shares motivation or financing details, even at a showing.
Flag nonstandard contracts. When a builder, a bank, or an institutional seller insists on its own contract, tell your client in writing to get legal advice before signing, and keep a copy in the file.
Check your brokerage’s policies. Many firms are updating intake and file-audit practices. Your managing broker’s policy may be stricter than the statute.
Hypothetical examples
These scenarios are hypothetical and simplified. They are for illustration only.
Hypothetical 1: Saturday showings. A couple contacts an agent about three homes in Briargate. The agent, an MLS member, shows the homes that Saturday. Under state law, the showing alone isn’t brokerage work, according to the DRE. But because of the NAR settlement rule, the agent should have a written buyer agreement signed before the tours. When the couple wants to make an offer on one, the agent needs a full written agreement that establishes the relationship and states the pay, such as an Exclusive Right-to-Buy, before writing the offer.
Hypothetical 2: The open house question. A buyer visits an open house without an agent and mentions she’s pre-approved for $525,000 and needs to move before school starts. The listing agent represents the seller. Before discussing those details, the agent should give the buyer the brokerage disclosure explaining that the agent works for the seller and that the buyer would be a customer.
Hypothetical 3: New construction. A buyer’s agent is helping a client buy a new home in a Falcon subdivision. The builder requires its own 20-page contract. Under the new C.R.S. 12-10-408.5, the agent must advise the buyer to get legal advice from a licensed attorney before signing. The buyer has the contract reviewed and learns the builder can extend the completion date with few limits.
Frequently asked questions
Do I have to sign an exclusive agreement to look at homes? Colorado law doesn’t require a signed agreement just for a showing, according to the DRE. But if your agent belongs to a Realtor-affiliated MLS, they’ll ask you to sign a written agreement before touring. Terms like length and exclusivity are negotiable.
Does the law set commission rates? No. It requires the agreement to state the amount or rate clearly. Commissions remain negotiable.
Does this apply to rentals? Yes. Leasing is a brokerage activity under Colorado law.
What if my agent never had me sign anything? If brokerage work happened after August 12, 2026, without a written agreement, that’s a compliance issue for the broker. How it affects fees or the deal depends on the facts. An attorney can review your situation.
The takeaway
Colorado’s new rule is mostly about clarity. Before a broker works for you, you should know who they represent and what they’ll be paid, in writing. Buyers and sellers should read those terms before signing. Agents should build the agreement into the first real step of every file. If you’re reviewing a builder contract, a brokerage agreement, or a deal that’s already underway, you can book a free consultation. Agents can find more on our For Agents & Partners page, and our guide to the Colorado closing process covers what comes next.
This article is general information about Colorado law as of September 25, 2026. It is not legal advice, and reading it does not create an attorney-client relationship. Laws and agency guidance change. For advice about your situation, talk with a licensed Colorado attorney.