Brokers will now be required to obtain “informed consent” to share sensitive customer information after Colorado regulators changed a long-standing format.
A major consumer transparency update went into effect on January 1, requiring Colorado brokers to obtain consent from their customers before sharing certain sensitive information, even within their brokerage firms.
Last month, the Colorado Real Estate Commission rejected two proposed changes to rules affecting conflict of interest and informed consent disclosures.
However, the commission has since opted to remove language from state authorization forms that would require brokers to obtain separate permission to share certain information, suggesting that consumer disclosure and transparency will continue to be a focus in the new year.
The commission considered two proposed rule changes toward the end of 2025, ultimately releasing an updated form on Thursday.
The Colorado Association of Realtors (CAR) said the rule change “significantly changes long-standing interpretations of designated brokers and broker oversight.”
One proposal would require brokers to disclose conflicts of interest to customers “whenever both sides of the transaction are supervised by the same employing/supervising broker,” reversing decades of European Commission interpretation.
CAR said it opposed the proposed changes because of their departure from established mediation law. There was a risk of blurring the lines between actual and potential disputes and confusing consumers. The committee rejected the proposal.
The second proposal would have required “written informed consent.”
CAR said the proposal was vague and there was no commission-approved form for obtaining such consent. This proposed rule change was also rejected. However, the commission still proceeded with formal changes that required specific customer approval.
The commission noted that it plans to implement a requirement that designated brokers must obtain “informed consent” from individuals before sharing information with third parties.
Sensitive information for the seller may include whether to accept the property request below, the motivation for listing, and whether the seller has agreed to alternative financing. For buyers, this may include whether the client is willing to pay more than requested, motivating factors, and more.
“As a result, starting January 1, 2026, Colorado brokers will be required to take additional steps to obtain the informed consent of their clients before sharing their confidential information with supervising brokers,” wrote John May, an attorney with Frascona, Joyner, Goodman & Greenstein.
Specifically, Section 5.3 has been removed from the Listing Agreement form. The section authorized a broker to share confidential information with other parties, including the broker’s supervising broker.
This change in format highlights the continued focus by regulators and real estate agent organizations as they work to balance customer transparency with long-standing industry norms. For example, another policy issue that has resurfaced in recent months involves whether real estate agents will be required to further disclose referral fees and sources of income to their clients.
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