Brokers must obtain “informed consent” to share clients’ confidential information after regulators change a long-standing form in Colorado.
Brokers in Colorado must now obtain a client’s consent to share certain confidential information even within their brokerages after a key update aimed at consumer transparency took effect on Jan. 1.
Last month, the Colorado Real Estate Commission rejected two proposed changes to its rules impacting the disclosure of conflicts of interest and informed consent.
However, the commission later opted to remove language from the state’s approved forms and will require brokers to obtain separate permission to share certain information, an early indication that consumer disclosures and transparency would stay in the spotlight heading into the new year.
The commission considered two proposed rule changes toward the end of 2025 before ultimately releasing an updated form on Thursday.
The Colorado Association of Realtors (CAR) said that the rule changes would have “significantly reshaped long-standing interpretations of designated brokerage and broker supervision.”
One proposal would have required brokers to disclose to clients a conflict of interest “any time both sides of a transaction were supervised by the same employing/supervising broker — reversing decades of Commission interpretation.”
CAR said it opposed the proposed change because of that break from established brokerage law; it blurred the line between actual and potential conflicts, and it risked confusing consumers. The commission rejected the proposal.
A second proposal would have required “written informed consent.”
CAR said that the proposal was ambiguous, and that there was no commission-approved form to obtain such consent. That proposed rule change was rejected, as well. But the commission moved forward with a form change that will still require specific client approval.
The commission has noted that it plans to enforce a requirement that designated brokers must obtain “informed consent” from their principals before sharing their information with any third party.
Confidential information for sellers can include whether they’re willing to accept below asking for a property, motivating factors for listing and whether the seller agreed to alternative financing. For buyers, it could include whether a client is willing to pay over ask, motivating factors and more.
“The upshot is that as of January 1, 2026, Colorado brokers need to take additional steps to get a client’s informed consent before sharing a client’s confidential information with supervising brokers,” wrote John May, an attorney with Frascona, Joiner, Goodman and Greenstein.
Specifically, paragraph 5.3 was removed from the listing contracts form. That paragraph gave approval for brokers to share confidential information with other parties, including the broker’s supervising broker.
The form change highlights an ongoing focus by regulators and Realtor organizations that are working to balance client transparency with long-standing norms in the industry. For instance, another policy issue that flared up in recent months involved whether Realtors would be required to disclose more sources of referral fees and income to their clients.
