CT
Connecticut House Bill HB07300

Connecticut 2019 Regular Session

Connecticut House Bill HB07300 Compare Versions

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55 General Assembly Raised Bill No. 7300
66 January Session, 2019
77 LCO No. 5450
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1010 Referred to Committee on GENERAL LAW
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1919 AN ACT CONCERNING TH E LICENSING OF LEASING AGENTS.
2020 Be it enacted by the Senate and House of Representatives in General
2121 Assembly convened:
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2323 Section 1. Section 20-311 of the general statutes is repealed and the 1
2424 following is substituted in lieu thereof (Effective October 1, 2019): 2
2525 As used in this chapter, unless the context otherwise requires: 3
2626 (1) "Real estate broker" or "broker" means (A) any person, 4
2727 partnership, association, limited liability company or corporation 5
2828 which acts for another person or entity and for a fee, commission or 6
2929 other valuable consideration, lists for sale, sells, exchanges, buys or 7
3030 rents, or offers or attempts to negotiate a sale, exchange, purchase or 8
3131 rental of, an estate or interest in real estate, or a resale of a mobile 9
3232 manufactured home, as defined in subdivision (1) of section 21-64, or 10
3333 collects or offers or attempts to collect rent for the use of real estate, 11
3434 and (B) any person, partnership, association, limited liability company 12
3535 or corporation employed by or on behalf of the owner or owners of lots 13
3636 or other parcels of real estate, at a stated salary, upon commission, 14
3737 upon a salary and commission basis or otherwise to sell such real 15 Raised Bill No. 7300
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4343 estate, or any parts thereof, in lots or other parcels, and who sells or 16
4444 exchanges, or offers, attempts or agrees to negotiate the sale or 17
4545 exchange of, any such lot or parcel of real estate; 18
4646 (2) "Real estate salesperson" or "salesperson" means a person 19
4747 affiliated with any real estate broker as an independent contractor or 20
4848 employed by a real estate broker to list for sale, sell or offer for sale, to 21
4949 buy or offer to buy or to negotiate the purchase or sale or exchange of 22
5050 real estate, or to offer for resale, a mobile manufactured home, as 23
5151 defined in subdivision (1) of section 21-64, or to lease or rent or offer to 24
5252 lease, rent or place for rent any real estate, or to collect or offer or 25
5353 attempt to collect rent for the use of real estate for or on behalf of such 26
5454 real estate broker, or who offers, sells or attempts to sell the real estate 27
5555 or mobile manufactured homes of a licensed broker, or acting for 28
5656 another as a designated seller agent or designated buyer agent, lists for 29
5757 sale, sells, exchanges, buys or rents, or offers or attempts to negotiate a 30
5858 sale, exchange, purchase or rental of, an estate or interest in real estate, 31
5959 or a resale of a mobile manufactured home, as defined in subsection (a) 32
6060 of section 21-64, or collects or offers or attempts to collect rent for the 33
6161 use of real estate, but does not include employees of any real estate 34
6262 broker whose principal occupation is clerical work in an office, or 35
6363 janitors or custodians engaged principally in that occupation; 36
6464 (3) "Engaging in the real estate business" means acting for another 37
6565 and for a fee, commission or other valuable consideration in the listing 38
6666 for sale, selling, exchanging, buying or renting, or offering or 39
6767 attempting to negotiate a sale, exchange, purchase or rental of, an 40
6868 estate or interest in real estate or a resale of a mobile manufactured 41
6969 home, as defined in subdivision (1) of section 21-64, or collecting upon 42
7070 a loan secured or to be secured by a mortgage or other encumbrance 43
7171 upon or transfer of real estate; 44
7272 (4) "Person" means any individual, partnership, association, limited 45
7373 liability company or corporation; 46
7474 (5) "Commission" means the Connecticut Real Estate Commission 47 Raised Bill No. 7300
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8181 (6) "Designated agency" means the appointment by a real estate 49
8282 broker of one or more brokers, leasing agents or salespersons affiliated 50
8383 with or employed by the real estate broker to solely represent a buyer 51
8484 or tenant as a designated buyer's agent and appoint another to 52
8585 represent a seller or landlord as a designated seller's agent in a 53
8686 transaction; 54
8787 (7) "Designated buyer agent" means a broker or salesperson 55
8888 designated by the real estate broker with whom the broker or 56
8989 salesperson is affiliated or employed to solely represent a named buyer 57
9090 or tenant client of the real estate broker during the term of a buyer 58
9191 representation agreement or authorization; 59
9292 (8) "Designated seller agent" means a leasing agent, broker or 60
9393 salesperson designated by the real estate broker with whom the 61
9494 broker, leasing agent or salesperson is affiliated or employed to solely 62
9595 represent a named seller or landlord client of the real estate broker 63
9696 during the term of a listing agreement or authorization; [and] 64
9797 (9) "Commercial real estate transaction" means any transaction 65
9898 involving the sale, exchange, lease or sublease of real property other 66
9999 than real property containing any building or structure occupied or 67
100100 intended to be occupied by no more than four families or a single 68
101101 building lot to be used for family or household purposes; [.] and 69
102102 (10) "Leasing agent" means any person, partnership, association, 70
103103 limited liability company or corporation which acts for another person 71
104104 or entity and, for a fee, commission or other valuable consideration, 72
105105 engages in leasing or renting activity or offers or attempts to negotiate 73
106106 a rental of, or collects or offers or attempts to collect rent for the use of 74
107107 residential real estate. 75
108108 Sec. 2. Section 20-311b of the general statutes is repealed and the 76
109109 following is substituted in lieu thereof (Effective October 1, 2019): 77 Raised Bill No. 7300
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115115 (a) Within thirty days after the appointment of the members of the 78
116116 commission, the commission shall meet in the city of Hartford for the 79
117117 purpose of organizing by selecting such officers other than a 80
118118 chairperson as the commission may deem necessary and appropriate. 81
119119 A majority of the members of the commission shall constitute a 82
120120 quorum for the exercise of the powers or authority conferred upon it. 83
121121 (b) (1) The commission shall authorize the Department of Consumer 84
122122 Protection to issue licenses to leasing agents, real estate brokers and 85
123123 real estate salespersons. 86
124124 (2) The commission shall administer the provisions of this chapter 87
125125 as to licensure and issuance, renewal, suspension or revocation of 88
126126 licenses concerning the real estate business. 89
127127 (c) The commission shall be provided with the necessary office 90
128128 space in Hartford by the Commissioner of Administrative Services. 91
129129 The place of business of the commission and all files, records and 92
130130 property of the commission shall at all times be and remain at such 93
131131 office, except that inactive files shall be stored at a location designated 94
132132 by the commission. 95
133133 (d) The commission shall hold meetings and hearings in Hartford, 96
134134 in space provided by the Commissioner of Administrative Services, or 97
135135 at such places outside of Hartford as shall be determined by the 98
136136 chairman of the commission. The commission shall meet at least once 99
137137 in each three-month period and may meet more often at the call of its 100
138138 chairman. The chairman of the commission shall call a meeting of the 101
139139 commission whenever requested to do so by a majority of the 102
140140 members of the commission. 103
141141 (e) The commission shall vote on all matters requiring a decision 104
142142 and votes shall be recorded in the commission's minutes. 105
143143 Sec. 3. Section 20-312 of the general statutes is repealed and the 106
144144 following is substituted in lieu thereof (Effective October 1, 2019): 107 Raised Bill No. 7300
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150150 (a) No person shall act as a leasing agent, real estate broker or real 108
151151 estate salesperson without a license issued by the commission or the 109
152152 Commissioner of Consumer Protection, unless exempt under this 110
153153 chapter. The Commissioner of Consumer Protection may enter into 111
154154 any contract for the purpose of administratively processing the 112
155155 renewal of licenses on behalf of the commission. 113
156156 (b) The practice of or the offer to practice real estate brokerage 114
157157 business in this state by individual licensed real estate brokers or real 115
158158 estate salespersons as a corporation, limited liability company, 116
159159 partnership or limited liability partnership, a material part of the 117
160160 business of which includes real estate brokerage, is permitted, 118
161161 provided (1) the personnel of such corporation, limited liability 119
162162 company, partnership or limited liability partnership who engage in 120
163163 the real estate brokerage business as real estate brokers or real estate 121
164164 salespersons, and the real estate brokers whose ownership, control, 122
165165 membership or partnership interest is credited toward the 123
166166 requirements of subdivision (3) of this subsection, are licensed or 124
167167 exempt from licensure under this chapter, (2) the corporation, limited 125
168168 liability company, partnership or limited liability partnership has been 126
169169 issued a real estate broker license by the commission as provided in 127
170170 this section and has paid the license or renewal fee required for a real 128
171171 estate broker's license as set forth in section 20-314, as amended by this 129
172172 act, and (3) except for a publicly traded corporation (A) with respect to 130
173173 a corporation other than a nonstock corporation, one or more real 131
174174 estate brokers own or control fifty-one per cent or more of the total 132
175175 issued shares of the corporation, (B) with respect to a nonstock 133
176176 corporation, one or more real estate brokers constitute at least fifty-one 134
177177 per cent of the members of the nonstock corporation, (C) with respect 135
178178 to a limited liability company, one or more real estate brokers own or 136
179179 control at least fifty-one per cent of the interest in the limited liability 137
180180 company, as defined in section 34-243a, or (D) with respect to a 138
181181 partnership or limited liability partnership, one or more real estate 139
182182 brokers' partnership interest, as defined in section 34-301, constitutes at 140
183183 least fifty-one per cent of the total partnership interest. No such 141 Raised Bill No. 7300
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189189 corporation, limited liability company, partnership or limited liability 142
190190 partnership shall be relieved of responsibility for the conduct or acts of 143
191191 its agents, employees or officers by reason of its compliance with this 144
192192 section, nor shall any individual practicing real estate brokerage be 145
193193 relieved of responsibility for real estate services performed by reason 146
194194 of the individual's employment or relationship with such corporation, 147
195195 limited liability company, partnership or limited liability partnership. 148
196196 The Real Estate Commission may refuse to authorize the issuance or 149
197197 renewal of a license if any facts exist that would entitle the commission 150
198198 to suspend or revoke an existing license. 151
199199 (c) A corporation, limited liability company, partnership or limited 152
200200 liability partnership desiring a real estate broker license shall file with 153
201201 the commission or the commissioner an application on such forms and 154
202202 in such manner as prescribed by the Department of Consumer 155
203203 Protection. Each such corporation, limited liability company, 156
204204 partnership or limited liability partnership shall file with the 157
205205 commission a designation of at least one individual licensed or 158
206206 qualified to be licensed as a real estate broker in this state who shall be 159
207207 in charge of the real estate brokerage business of such corporation, 160
208208 limited liability company, partnership or limited liability partnership 161
209209 in this state. Such corporation, limited liability company, partnership 162
210210 or limited liability partnership shall notify the commission of any 163
211211 change in such designation not later than thirty days after such change 164
212212 becomes effective. 165
213213 (d) The Real Estate Commission may impose a fine of not more than 166
214214 one thousand dollars on any corporation, limited liability company, 167
215215 partnership or limited liability partnership that engages in real estate 168
216216 business without a license required by this section. Any such 169
217217 imposition of a fine by the commission shall be a proposed final 170
218218 decision and submitted to the commissioner in accordance with the 171
219219 provisions of subsection (b) of section 21a-7. 172
220220 Sec. 4. Section 20-312a of the general statutes is repealed and the 173
221221 following is substituted in lieu thereof (Effective October 1, 2019): 174 Raised Bill No. 7300
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227227 In any action brought by a third party against a real estate 175
228228 salesperson or leasing agent affiliated with a real estate broker as an 176
229229 independent contractor, such broker shall be liable to the same extent 177
230230 as if such affiliate had been employed as a real estate salesperson or 178
231231 leasing agent by such broker. 179
232232 Sec. 5. Section 20-312b of the general statutes is repealed and the 180
233233 following is substituted in lieu thereof (Effective October 1, 2019): 181
234234 A licensed leasing agent, real estate broker or real estate salesperson 182
235235 shall not be considered an employee under the provisions of section 183
236236 31-275 if substantially all of the remuneration for the services 184
237237 performed by such leasing agent, broker or salesperson, whether paid 185
238238 in cash or otherwise, is directly related to sales or other output rather 186
239239 than to the number of hours worked, and such services are performed 187
240240 by the leasing agent, broker or salesperson pursuant to a written 188
241241 contract that contains the following provisions: 189
242242 (1) The leasing agent, broker or salesperson, for purposes of 190
243243 workers' compensation, is engaged as an independent contractor 191
244244 associated with the person for whom services are performed; 192
245245 (2) The leasing agent, broker or salesperson shall be paid a 193
246246 commission based on his gross sales or leases, if any, without 194
247247 deduction for taxes, which commission shall be directly related to 195
248248 sales, leases or other output; 196
249249 (3) The leasing agent, broker or salesperson shall not receive any 197
250250 remuneration related to the number of hours worked and shall not be 198
251251 treated as an employee with respect to such services for purposes of 199
252252 workers' compensation; 200
253253 (4) The leasing agent, broker or salesperson shall be permitted to 201
254254 work any hours he or she chooses; 202
255255 (5) The leasing agent, broker or salesperson shall be permitted to 203
256256 work out of his or her own home or the office of the person for whom 204 Raised Bill No. 7300
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262262 services are performed; 205
263263 (6) The leasing agent, broker or salesperson shall be free to engage 206
264264 in outside employment; 207
265265 (7) The person for whom the services are performed may provide 208
266266 office facilities and supplies for the use of the leasing agent, broker or 209
267267 salesperson, but the leasing agent, broker or salesperson shall 210
268268 otherwise pay his or her own expenses, including, but not limited to, 211
269269 automobile, travel and entertainment expenses; and 212
270270 (8) The contract may be terminated by [either party] the leasing 213
271271 agent, broker or salesperson at any time upon notice given to the other. 214
272272 Sec. 6. Section 20-314 of the general statutes is repealed and the 215
273273 following is substituted in lieu thereof (Effective October 1, 2019): 216
274274 (a) Licenses shall be granted under this chapter only to persons who 217
275275 bear a good reputation for honesty, truthfulness and fair dealing and 218
276276 who are competent to transact the business of a leasing agent, real 219
277277 estate broker or real estate salesperson in such manner as to safeguard 220
278278 the interests of the public. 221
279279 (b) Each application for a license or for a renewal thereof shall be 222
280280 made in writing, on such forms and in such manner as is prescribed by 223
281281 the Department of Consumer Protection and accompanied by such 224
282282 evidence in support of such application as is prescribed by the 225
283283 commission. The commission may require such information with 226
284284 regard to an applicant as the commission deems desirable, with due 227
285285 regard to the paramount interests of the public, as to the honesty, 228
286286 truthfulness, integrity and competency of the applicant and, where the 229
287287 applicant is a corporation, association or partnership, as to the honesty, 230
288288 truthfulness, integrity and competency of the officers of such 231
289289 corporation or the members of such association or partnership. 232
290290 (c) In order to determine the competency of any applicant for a 233
291291 leasing agent's license, real estate broker's license or a real estate 234 Raised Bill No. 7300
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297297 salesperson's license, the commission or Commissioner of Consumer 235
298298 Protection shall, on payment of an application fee of one hundred 236
299299 twenty dollars by an applicant for a leasing agent's license, real estate 237
300300 broker's license or an application fee of eighty dollars by an applicant 238
301301 for a leasing agent's license or real estate salesperson's license, subject 239
302302 such applicant to personal written examination as to the applicant's 240
303303 competency to act as a leasing agent, real estate broker or real estate 241
304304 salesperson, as the case may be. Such examination shall be prepared by 242
305305 the Department of Consumer Protection or by a national testing 243
306306 service designated by the Commissioner of Consumer Protection and 244
307307 shall be administered to applicants by the Department of Consumer 245
308308 Protection or by such testing service at such times and places as the 246
309309 commissioner may deem necessary. The commission or Commissioner 247
310310 of Consumer Protection may waive the uniform portion of the written 248
311311 examination requirement in the case of an applicant who has taken the 249
312312 national testing service examination in another state within two years 250
313313 from the date of application and has received a score deemed 251
314314 satisfactory by the commission or Commissioner of Consumer 252
315315 Protection. The Commissioner of Consumer Protection shall adopt 253
316316 regulations, in accordance with chapter 54, establishing passing scores 254
317317 for examinations. In addition to such application fee, applicants taking 255
318318 the examination administered by a national testing service shall be 256
319319 required to pay directly to such testing service an examination fee 257
320320 covering the cost of such examination. Each payment of such 258
321321 application fee shall entitle the applicant to take such examination 259
322322 within the one-year period from the date of payment. 260
323323 (d) (1) Each applicant applying for a real estate broker's license on or 261
324324 after July 1, 2016, shall, before being admitted to such examination, 262
325325 prove to the satisfaction of the commission or the Commissioner of 263
326326 Consumer Protection that the applicant (A) (i) has been actively 264
327327 engaged for at least two years as a licensed real estate salesperson 265
328328 under the supervision of a licensed real estate broker in this state, (ii) 266
329329 has successfully completed a course approved by the commission or 267
330330 commissioner in real estate principles and practices of at least sixty 268 Raised Bill No. 7300
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336336 classroom hours of study, (iii) has successfully completed a course 269
337337 approved by the commission or commissioner in real estate legal 270
338338 compliance consisting of at least fifteen classroom hours of study, (iv) 271
339339 has successfully completed a course approved by the commission or 272
340340 commissioner in real estate brokerage principles and practices 273
341341 consisting of at least fifteen classroom hours, and (v) has successfully 274
342342 completed two elective courses, each consisting of fifteen classroom 275
343343 hours of study, as prescribed by the commission or commissioner, or 276
344344 (B) has equivalent experience or education as determined by the 277
345345 commission or commissioner. 278
346346 (2) The commission or the Commissioner of Consumer Protection 279
347347 shall waive the elective courses under subparagraph (A)(v) of 280
348348 subdivision (1) of this subsection if the applicant has successfully 281
349349 completed at least twenty real estate transactions within five years 282
350350 immediately preceding the date of application. As used in this 283
351351 subdivision, "real estate transaction" means any transaction in which 284
352352 real property is legally transferred to another party or in which a lease 285
353353 agreement is executed between a landlord and a tenant. 286
354354 (3) Each applicant for a real estate salesperson's license shall, before 287
355355 being admitted to such examination, prove to the satisfaction of the 288
356356 commission or the Commissioner of Consumer Protection that the 289
357357 applicant (A) has successfully completed a course approved by the 290
358358 commission or commissioner in real estate principles and practices 291
359359 consisting of at least sixty classroom hours of study, or (B) has 292
360360 equivalent experience or education as determined by the commission 293
361361 or commissioner. 294
362362 (4) Each applicant for a leasing agent license shall, before being 295
363363 admitted to such examination, prove to the satisfaction of the 296
364364 commission or the Commissioner of Consumer Protection that the 297
365365 applicant (A) has successfully completed a course approved by the 298
366366 commission or commissioner in real estate principles and practices 299
367367 consisting of at least thirty classroom hours of study, or (B) has 300
368368 equivalent experience or education as determined by the commission 301 Raised Bill No. 7300
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374374 or commissioner. 302
375375 (e) The provisions of subsections (c) and (d) of this section shall not 303
376376 apply to any renewal of a real estate broker's license, or a real estate 304
377377 salesperson's license issued prior to October 1, 1973. 305
378378 (f) All licenses issued under the provisions of this chapter shall 306
379379 expire annually. At the time of application for a real estate broker's 307
380380 license, there shall be paid to the commission, for each individual 308
381381 applicant and for each proposed active member or officer of a firm, 309
382382 partnership, association or corporation, the sum of five hundred sixty-310
383383 five dollars, and for the annual renewal thereof, the sum of three 311
384384 hundred seventy-five dollars and for a real estate salesperson's license 312
385385 two hundred eighty-five dollars and for the annual renewal thereof the 313
386386 sum of two hundred eighty-five dollars. Three dollars of each such 314
387387 annual renewal fee shall be payable to the Real Estate Guaranty Fund 315
388388 established pursuant to section 20-324a, as amended by this act. If a 316
389389 license is not issued, the fee shall be returned. A real estate broker's 317
390390 license issued to any partnership, association or corporation shall 318
391391 entitle the individual designated in the application, as provided in 319
392392 section 20-312, as amended by this act, upon compliance with the 320
393393 terms of this chapter, but without the payment of any further fee, to 321
394394 perform all of the acts of a real estate broker under this chapter on 322
395395 behalf of such partnership, association or corporation. Any license 323
396396 which expires and is not renewed pursuant to this subsection may be 324
397397 reinstated by the commission, if, not later than two years after the date 325
398398 of expiration, the former licensee pays to the commission for each real 326
399399 estate broker's license the sum of three hundred seventy-five dollars 327
400400 and for each real estate salesperson's license the sum of two hundred 328
401401 eighty-five dollars for each year or fraction thereof from the date of 329
402402 expiration of the previous license to the date of payment for 330
403403 reinstatement, except that any licensee whose license expired after 331
404404 such licensee entered military service shall be reinstated without 332
405405 payment of any fee if an application for reinstatement is filed with the 333
406406 commission within two years after the date of expiration. Any such 334
407407 reinstated license shall expire on the next succeeding March thirty-first 335 Raised Bill No. 7300
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413413 for real estate brokers or the next succeeding May thirty-first for real 336
414414 estate salespersons. 337
415415 (g) Any person whose application has been filed as provided in this 338
416416 section and who is refused a license shall be given notice and afforded 339
417417 an opportunity for hearing as provided in the regulations adopted by 340
418418 the Commissioner of Consumer Protection. 341
419419 (h) Leasing agents may engage only in residential leasing activities 342
420420 for which a license is required under this chapter. Nothing in this 343
421421 section shall be construed to require a licensed broker or salesperson to 344
422422 obtain a leasing agent license in order to perform leasing activities. 345
423423 Licensed leasing agents may not engage in any activity that would 346
424424 otherwise require a broker or salesperson's license, including, but not 347
425425 limited to, selling, offering for sale, negotiating for sale, listing or 348
426426 showing for sale, entering into lease-to-own agreements, or referring 349
427427 for sale or lease of commercial real estate. Licensed leasing agents shall 350
428428 be (1) employed by or affiliated with a sponsoring broker, or (2) 351
429429 employed by the real property owner of record of the property being 352
430430 offered for lease. If employed by or contracting with a real property 353
431431 owner to provide leasing services for such owner, the leasing agent 354
432432 shall obtain a written contract with such property owner to 355
433433 demonstrate the employment or contract relationship prior to 356
434434 engaging in leasing activity at the property. 357
435435 Sec. 7. Section 20-316 of the general statutes is repealed and the 358
436436 following is substituted in lieu thereof (Effective October 1, 2019): 359
437437 (a) The commission or Commissioner of Consumer Protection shall 360
438438 not deny a license under this chapter to any applicant who has been 361
439439 convicted of forgery, embezzlement, obtaining money under false 362
440440 pretenses, extortion, criminal conspiracy to defraud or other like 363
441441 offense or offenses, or to any association or partnership of which such 364
442442 person is a member, or to any corporation of which such person is an 365
443443 officer or in which as a stockholder such person has or exercises a 366
444444 controlling interest either directly or indirectly, except in accordance 367 Raised Bill No. 7300
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450450 with the provisions of section 46a-80. 368
451451 (b) No license under this chapter shall be issued by the Department 369
452452 of Consumer Protection to any applicant (1) whose application for a 370
453453 license as a real estate broker, leasing agent or real estate salesperson 371
454454 has, within one year prior to the date of his or her application under 372
455455 this chapter, been rejected in this state, in any other state or in the 373
456456 District of Columbia or (2) whose license as a real estate broker, leasing 374
457457 agent or real estate salesperson has, within one year prior to the date of 375
458458 his or her application under this chapter, been revoked in this state, in 376
459459 any other state or in the District of Columbia. 377
460460 (c) No license as a real estate broker, leasing agent or real estate 378
461461 salesperson shall be issued under this chapter to any person who has 379
462462 not attained the age of eighteen years. 380
463463 (d) The provisions of this section shall apply to any applicant for a 381
464464 license under this chapter, whether or not such applicant was engaged 382
465465 in the real estate business in this state on July 1, 1953, and whenever 383
466466 the applicant's application is filed. 384
467467 Sec. 8. Section 20-317 of the general statutes is repealed and the 385
468468 following is substituted in lieu thereof (Effective October 1, 2019): 386
469469 (a) A person licensed in another state as a real estate broker or 387
470470 salesperson may become a leasing agent, real estate broker or real 388
471471 estate salesperson in this state by conforming to all of the provisions of 389
472472 this chapter. The commission or Commissioner of Consumer 390
473473 Protection shall recognize a current, valid license issued to a currently 391
474474 practicing, competent real estate broker or real estate salesperson by 392
475475 another state as satisfactorily qualifying the broker or salesperson for a 393
476476 license as a leasing agent, real estate broker or real estate salesperson 394
477477 under this chapter, provided (1) the laws of the state in which the 395
478478 broker or salesperson is licensed require that applicants for licenses as 396
479479 real estate brokers and real estate salespersons establish their 397
480480 competency by written examinations and allow licenses to be issued to 398
481481 residents of the state of Connecticut, licensed under this chapter, 399 Raised Bill No. 7300
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487487 without examination, (2) the licensure requirements of such state are 400
488488 substantially similar to or higher than those of this state, and (3) the 401
489489 broker or salesperson has no disciplinary proceeding or unresolved 402
490490 complaint pending against the broker or salesperson. If the applicant is 403
491491 licensed in a state that does not have such requirements, such 404
492492 applicant shall be required to pass the Connecticut portion of the real 405
493493 estate examination. 406
494494 (b) Every applicant licensed in another state shall file an irrevocable 407
495495 consent that suits and actions may be commenced against such 408
496496 applicant in the proper court in any judicial district of the state in 409
497497 which a cause of action may arise or in which the plaintiff may reside, 410
498498 by the service of any process or pleading, authorized by the laws of 411
499499 this state, on the chairperson of the commission, such consent 412
500500 stipulating and agreeing that such service of such process or pleading 413
501501 shall be taken and held in all courts to be as valid and binding as if 414
502502 service had been made upon such applicant in the state of Connecticut. 415
503503 If any process or pleadings under this chapter are served upon the 416
504504 chairperson, it shall be by duplicate copies, one of which shall be filed 417
505505 in the office of the commission, and the other immediately forwarded 418
506506 by registered or certified mail, to the applicant against whom such 419
507507 process or pleadings are directed, at the last-known address of such 420
508508 applicant as shown by the records of the commission. No default in 421
509509 any such proceedings or action shall be taken unless it appears by 422
510510 affidavit of the chairperson of the commission that a copy of the 423
511511 process or pleading was mailed to the defendant as required by this 424
512512 subsection, and no judgment by default shall be taken in any such 425
513513 action or proceeding within twenty days after the date of mailing of 426
514514 such process or pleading to the out-of-state defendant. 427
515515 Sec. 9. Section 20-319 of the general statutes is repealed and the 428
516516 following is substituted in lieu thereof (Effective October 1, 2019): 429
517517 (a) The commission shall authorize the Department of Consumer 430
518518 Protection to issue an annual renewal license to any applicant who 431
519519 possesses the qualifications specified in and otherwise has complied 432 Raised Bill No. 7300
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525525 with the provisions of this chapter and any regulation adopted under 433
526526 this chapter. The commission shall authorize said department to issue 434
527527 an annual renewal of a real estate broker's license to any entity licensed 435
528528 pursuant to subsection (b) of section 20-312, as amended by this act, 436
529529 provided such entity: (1) Was so licensed as of September 30, 2005, 437
530530 notwithstanding the fact such entity does not meet the requirements 438
531531 for publicly traded corporations required by subdivision (3) of 439
532532 subsection (b) of section 20-312, as amended by this act, or (2) changes 440
533533 its designated real estate broker pursuant to subsection (c) of section 441
534534 20-312, as amended by this act. 442
535535 (b) There is hereby established an annual renewal license to be 443
536536 issued by the Department of Consumer Protection. Persons licensed in 444
537537 accordance with the provisions of this chapter shall fulfill a continuing 445
538538 education requirement. Applicants for an annual renewal license for 446
539539 real estate brokers, leasing agents or real estate salespersons shall, in 447
540540 addition to the other requirements imposed by the provisions of this 448
541541 chapter, in any even-numbered year, submit proof of compliance with 449
542542 the continuing education requirements of this subsection to the 450
543543 commission, accompanied by an eight-dollar processing fee. The 451
544544 continuing education requirement may be satisfied by successful 452
545545 completion of any of the following during the two-year period 453
546546 preceding such renewal: (1) A course or courses, approved by the 454
547547 commission, of continuing education in current real estate practices 455
548548 and licensing laws [, including, but not limited to, practices and laws 456
549549 concerning common interest communities,] consisting of not less than 457
550550 twelve hours of classroom study, which course curriculum shall be 458
551551 prescribed in regulations adopted pursuant to subsection (d) of this 459
552552 section; or (2) a written examination prepared and administered by 460
553553 either the Department of Consumer Protection, or by a national testing 461
554554 service approved by the department, which demonstrates a knowledge 462
555555 of current real estate practices and licensing laws; or (3) equivalent 463
556556 continuing educational experience or study as determined by 464
557557 regulations adopted pursuant to subsection (d) of this section. An 465
558558 applicant for examination under subdivision (2) of this subsection shall 466 Raised Bill No. 7300
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564564 pay the required examination fee to the national testing service, if 467
565565 administered by such testing service, or to the Department of 468
566566 Consumer Protection, if administered by the department. 469
567567 (c) If the commission refuses to grant an annual renewal license, the 470
568568 licensee or applicant, upon written notice received as provided for in 471
569569 this chapter, may have recourse to any of the remedies provided by 472
570570 sections 20-314, as amended by this act, and 20-322. 473
571571 (d) The Commissioner of Consumer Protection, in consultation with 474
572572 the commission, shall adopt regulations, in accordance with chapter 475
573573 54, concerning the approval of schools, institutions or organizations 476
574574 offering courses in current real estate practices and licensing laws, 477
575575 including, but not limited to, practices and laws concerning common 478
576576 interest communities, and the content of such courses. Such 479
577577 regulations shall include, but not be limited to: (1) Specifications for 480
578578 meeting equivalent continuing educational experience or study; (2) 481
579579 exceptions from continuous education requirements for reasons of 482
580580 health or instances of individual hardship. No school, institution or 483
581581 organization that offers a course in current real estate practices and 484
582582 licensing laws may be disapproved solely because its courses are 485
583583 offered or taught by electronic means, and no course may be 486
584584 disapproved solely because it is offered or taught by electronic means. 487
585585 Sec. 10. Section 20-319a of the general statutes is repealed and the 488
586586 following is substituted in lieu thereof (Effective October 1, 2019): 489
587587 (a) Any licensed real estate salesperson or leasing agent who 490
588588 transfers his or her employment from one broker or property owner to 491
589589 another or his or her affiliation with a broker or property owner as an 492
590590 independent contractor shall register such transfer with, and pay a 493
591591 registration fee of twenty-five dollars to, the commission. 494
592592 (b) A fee of twenty-five dollars shall be paid to the commission for 495
593593 the issuance of a license certification. 496
594594 Sec. 11. Section 20-320 of the general statutes is repealed and the 497 Raised Bill No. 7300
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600600 following is substituted in lieu thereof (Effective October 1, 2019): 498
601601 The Department of Consumer Protection may, upon the request of 499
602602 the commission or upon the verified complaint in writing of any 500
603603 person, if such complaint, or such complaint together with evidence, 501
604604 documentary or otherwise, presented in connection with such 502
605605 complaint, shall make out a prima facie case, investigate the actions of 503
606606 any leasing agent, real estate broker or real estate salesperson or any 504
607607 person who assumes to act in any of such capacities within this state. 505
608608 The commission may temporarily suspend or permanently revoke any 506
609609 license issued under the provisions of this chapter and, in addition to 507
610610 or in lieu of such suspension or revocation, may, in its discretion, 508
611611 impose a fine of not more than two thousand dollars per violation at 509
612612 any time when, after proceedings as provided in section 20-321, the 510
613613 commission finds that the licensee has by false or fraudulent 511
614614 misrepresentation obtained a license or that the licensee is guilty of 512
615615 any of the following: (1) Making any material misrepresentation; (2) 513
616616 making any false promise of a character likely to influence, persuade 514
617617 or induce; (3) acting as an agent for more than one party in a 515
618618 transaction without the knowledge of all parties for whom the licensee 516
619619 acts; (4) representing or attempting to represent a real estate broker 517
620620 other than the licensee's employer or the broker with whom the 518
621621 licensee is affiliated, without the express knowledge and consent of the 519
622622 licensee's employer or affiliated broker; (5) failing, within a reasonable 520
623623 time, to account for or remit any moneys coming into the licensee's 521
624624 possession which belong to others; (6) entering into an exclusive listing 522
625625 contract or buyer agency contract which contains a fixed termination 523
626626 date if such contract also provides for an automatic continuation of the 524
627627 period of such contract beyond such date; (7) failing to deliver 525
628628 immediately a copy of any instrument to any party or parties 526
629629 executing the instrument, where such instrument has been prepared 527
630630 by the licensee or under the licensee's supervision and where such 528
631631 instrument relates to the employment of the licensee or to any matters 529
632632 pertaining to the consummation of a lease, or the purchase, sale or 530
633633 exchange of real property or any other type of real estate transaction in 531 Raised Bill No. 7300
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637637 LCO No. 5450 18 of 29
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639639 which the licensee may participate as a broker, leasing agent or a 532
640640 salesperson; (8) conviction in a court of competent jurisdiction of 533
641641 forgery, embezzlement, obtaining money under false pretenses, 534
642642 larceny, extortion, conspiracy to defraud, or other like offense or 535
643643 offenses, provided suspension or revocation under this subdivision 536
644644 shall be subject to the provisions of section 46a-80; (9) collecting 537
645645 compensation in advance of services to be performed and failing, upon 538
646646 demand of the person paying the compensation or the commission, to 539
647647 render an accounting of the use of such money; (10) commingling 540
648648 funds of others with the licensee's own, or failing to keep funds of 541
649649 others in an escrow or trustee account; (11) any act or conduct which 542
650650 constitutes dishonest, fraudulent or improper dealings; (12) failing to 543
651651 provide the disclosures required by section 20-325c; (13) a violation of 544
652652 any provision of this chapter or any regulation adopted under this 545
653653 chapter. Any such suspension or revocation of a license or imposition 546
654654 of a fine by the commission shall be a proposed final decision and 547
655655 submitted to the commissioner in accordance with the provisions of 548
656656 subsection (b) of section 21a-7. Any fine collected pursuant to this 549
657657 section shall be deposited in the Real Estate Guaranty Fund established 550
658658 pursuant to section 20-324a, as amended by this act. 551
659659 Sec. 12. Section 20-320a of the general statutes is repealed and the 552
660660 following is substituted in lieu thereof (Effective October 1, 2019): 553
661661 (a) No real estate broker, leasing agent or real estate salesperson, no 554
662662 person affiliated with such broker or salesperson, and no person 555
663663 engaging in the real estate business may receive a fee, commission or 556
664664 other form of referral fee for the referral of any buyer of real property 557
665665 to (1) an attorney-at-law admitted to practice in this state or any person 558
666666 affiliated with such attorney or (2) any mortgage broker, any lender, as 559
667667 defined in subdivision (5) of section 49-31d, or any person affiliated 560
668668 with such mortgage broker or lender. 561
669669 (b) The Department of Consumer Protection may, upon the request 562
670670 of the commission or upon the verified complaint in writing of any 563
671671 person, if such complaint, or such complaint together with evidence, 564 Raised Bill No. 7300
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677677 documentary or otherwise, presented in connection with such 565
678678 complaint, shall make out a prima facie case, investigate the actions of 566
679679 any real estate broker or real estate salesperson or any person who 567
680680 assumes to act in any of such capacities within this state. The 568
681681 commission may temporarily suspend or permanently revoke any 569
682682 license issued under the provisions of this chapter, and, in addition to 570
683683 or in lieu of such suspension or revocation, may, in its discretion, 571
684684 impose a fine of not more than one thousand dollars for the first 572
685685 offense at any time when, after proceedings as provided in section 20-573
686686 321, the commission finds that the licensee is guilty of violating any of 574
687687 the provisions of subsection (a) of this section. Any such suspension or 575
688688 revocation of a license or imposition of a fine by the commission shall 576
689689 be a proposed final decision and submitted to the commissioner in 577
690690 accordance with the provisions of subsection (b) of section 21a-7. 578
691691 Sec. 13. Section 20-320b of the general statutes is repealed and the 579
692692 following is substituted in lieu thereof (Effective October 1, 2019): 580
693693 (a) A real estate broker, leasing agent or real estate salesperson 581
694694 licensed under this chapter shall not influence residential real estate 582
695695 appraisals. For the purposes of this section, "influence residential real 583
696696 estate appraisals" includes, but is not limited to, refusal or intentional 584
697697 failure to refer a homebuyer, or encouraging other real estate brokers, 585
698698 leasing agents or real estate salespersons not to refer a homebuyer, to a 586
699699 mortgage broker, as defined in section 36a-760, or a lender, as defined 587
700700 in section 36a-760, based solely on the fact that the mortgage broker or 588
701701 lender uses an appraiser who has provided an appraisal reflecting a 589
702702 fair market value estimate that was less than the sale contract price. 590
703703 (b) Violations of subsection (a) of this section shall be subject to the 591
704704 actions and penalties set forth in section 20-320, as amended by this 592
705705 act. 593
706706 Sec. 14. Section 20-323 of the general statutes is repealed and the 594
707707 following is substituted in lieu thereof (Effective October 1, 2019): 595
708708 Any licensee under this chapter who is convicted of a violation of 596 Raised Bill No. 7300
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712712 LCO No. 5450 20 of 29
713713
714714 any of the offenses enumerated in subdivision (8) of section 20-320, 597
715715 [shall] as amended by this act, may incur a forfeiture of his license and 598
716716 all moneys that may have been paid for such license. The clerk of any 599
717717 court in which such conviction has been rendered shall forward to the 600
718718 commission without charge a certified copy of such conviction. The 601
719719 [commission, upon the receipt of a copy of the judgment of conviction, 602
720720 shall, not later than ten days after such receipt, notify the licensee, in 603
721721 writing, of the revocation of his license. Such notice shall be conclusive 604
722722 of the revocation of such license] commissioner may revoke such 605
723723 licensee's license after proceedings as provided in section 20-321. 606
724724 Application for reinstatement of such license shall be subject to the 607
725725 provisions of section 46a-80. 608
726726 Sec. 15. Section 20-324a of the general statutes is repealed and the 609
727727 following is substituted in lieu thereof (Effective October 1, 2019): 610
728728 The commission shall establish and maintain a Real Estate Guaranty 611
729729 Fund from which, subject to the provisions of sections 20-324a to 20-612
730730 324j, inclusive, any person aggrieved by any action of a leasing agent, 613
731731 real estate broker or real estate salesperson, duly licensed in this state 614
732732 under section 20-312, as amended by this act, by reason of the 615
733733 embezzlement of money or property, or money or property unlawfully 616
734734 obtained from any person by false pretenses, artifice or forgery or by 617
735735 reason of any fraud, misrepresentation or deceit by or on the part of 618
736736 any such leasing agent, real estate broker or real estate salesperson or 619
737737 the unlicensed employee of any such real estate broker, may recover, 620
738738 upon approval by the commission of an application brought pursuant 621
739739 to the provisions of section 20-324e, as amended by this act, 622
740740 compensation in an amount not exceeding in the aggregate the sum of 623
741741 twenty-five thousand dollars in connection with any one real estate 624
742742 transaction or claim, regardless of the number of persons aggrieved or 625
743743 parcels of real estate involved in such real estate transaction or claim. 626
744744 Sec. 16. Section 20-324b of the general statutes is repealed and the 627
745745 following is substituted in lieu thereof (Effective October 1, 2019): 628 Raised Bill No. 7300
746746
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749749 LCO No. 5450 21 of 29
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751751 Any person who receives a leasing agent, real estate broker's or real 629
752752 estate salesperson's license under this chapter for the first time shall 630
753753 pay an additional one-time fee of twenty dollars in addition to all other 631
754754 fees payable, which additional fee shall be credited to the Real Estate 632
755755 Guaranty Fund. The Real Estate Guaranty Fund shall also be credited 633
756756 as provided in sections 20-314, as amended by this act, and 20-320, as 634
757757 amended by this act. 635
758758 Sec. 17. Section 20-324e of the general statutes is repealed and the 636
759759 following is substituted in lieu thereof (Effective October 1, 2019): 637
760760 (a) When any aggrieved person commences any action for a 638
761761 judgment which may result in collection from the Real Estate Guaranty 639
762762 Fund, the aggrieved person shall notify the commission in writing to 640
763763 this effect at the time of the commencement of such action. Such 641
764764 written notice shall toll the time for making application to the 642
765765 commission pursuant to section 20-324d. The commission shall have 643
766766 the right to enter an appearance, intervene in or defend any such 644
767767 action and may waive the required written notice for good cause 645
768768 shown. 646
769769 (b) When any aggrieved person recovers a valid judgment in the 647
770770 Superior Court against any real estate broker, leasing agent or real 648
771771 estate salesperson or the unlicensed employee of any such real estate 649
772772 broker for loss or damages sustained by reason of the embezzlement of 650
773773 money or property, or money or property unlawfully obtained from 651
774774 any person by false pretenses, artifice or forgery or by reason of any 652
775775 fraud, misrepresentation or deceit by or on the part of such real estate 653
776776 broker, leasing agent or salesperson or the unlicensed employee of any 654
777777 such real estate broker, such aggrieved person may upon the final 655
778778 determination of, or expiration of time for appeal in connection with, 656
779779 any judgment, apply to the commission for an order directing payment 657
780780 out of the Real Estate Guaranty Fund of the amount unpaid upon the 658
781781 judgment, subject to the limitations stated in section 20-324, as 659
782782 amended by this act, and the limitations specified in this section. 660 Raised Bill No. 7300
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788788 (c) The commission shall proceed upon such application in a 661
789789 summary manner, and, upon the hearing thereof, the aggrieved person 662
790790 shall be required to show: (1) He or she is not a spouse of the debtor or 663
791791 the personal representative of such spouse; (2) he or she has complied 664
792792 with all the requirements of this section; (3) he or she has obtained a 665
793793 judgment as provided in subsection (b) of this section, stating the 666
794794 amount thereof and the amount owing thereon at the date of the 667
795795 application; (4) he or she has caused to be issued a writ of execution 668
796796 upon the judgment and the officer executing the same has made a 669
797797 return showing that no personal or real property of the judgment 670
798798 debtor liable to be levied upon in satisfaction of the judgment could be 671
799799 found, or that the amount realized on the sale of them or of such of 672
800800 them as were found, under the execution, was insufficient to satisfy the 673
801801 judgment, stating the amount so realized and the balance remaining 674
802802 due on the judgment after application thereon of the amount realized; 675
803803 (5) he or she has made all reasonable searches and inquiries to 676
804804 ascertain whether the judgment debtor possesses real or personal 677
805805 property or other assets, liable to be sold or applied in satisfaction of 678
806806 the judgment; (6) that by such search he or she has discovered no 679
807807 personal or real property or other assets liable to be sold or applied, or 680
808808 that he has discovered certain of them, describing them, owned by the 681
809809 judgment debtor and liable to be so applied, and that he or she has 682
810810 taken all necessary action and proceedings for the realization thereof, 683
811811 and that the amount thereby realized was insufficient to satisfy the 684
812812 judgment, stating the amount so realized and the balance remaining 685
813813 due on the judgment after application of the amount realized. 686
814814 (d) Whenever the aggrieved person satisfies the commission that it 687
815815 is not practicable to comply with one or more of the requirements 688
816816 enumerated in subdivisions (4), (5) and (6) of subsection (c) of this 689
817817 section and that the aggrieved person has taken all reasonable steps to 690
818818 collect the amount of the judgment or the unsatisfied part thereof and 691
819819 has been unable to collect the same, the commission may in its 692
820820 discretion waive such requirements. 693
821821 (e) The commission shall order payment from the Real Estate 694 Raised Bill No. 7300
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827827 Guaranty Fund of any sum it shall find to be payable upon the claim, 695
828828 pursuant to the provisions of and in accordance with the limitations 696
829829 contained in this section and section 20-324a, as amended by this act, if 697
830830 the commission is satisfied, upon the hearing, of the truth of all matters 698
831831 required to be shown by the aggrieved person by subsection (c) of this 699
832832 section and that the aggrieved person has fully pursued and exhausted 700
833833 all remedies available to him or her for recovering the amount 701
834834 awarded by the judgment of the court. 702
835835 (f) If the commission pays from the Real Estate Guaranty Fund any 703
836836 amount in settlement of a claim or toward satisfaction of a judgment 704
837837 against a licensed real estate broker, leasing agent or real estate 705
838838 salesperson pursuant to an order under subsection (e) of this section, 706
839839 such broker, leasing agent or salesperson shall not be eligible to receive 707
840840 a new license until he or she has repaid in full, plus interest at a rate to 708
841841 be determined by the commission and which shall reflect current 709
842842 market rates, the amount paid from the fund on his or her account. A 710
843843 discharge in bankruptcy shall not relieve a person from the penalties 711
844844 and disabilities provided in this subsection. 712
845845 (g) If, at any time, the money deposited in the Real Estate Guaranty 713
846846 Fund is insufficient to satisfy any duly authorized claim or portion 714
847847 thereof, the commission shall, when sufficient money has been 715
848848 deposited in the fund, satisfy such unpaid claims or portions thereof, 716
849849 in the order that such claims or portions thereof were originally filed, 717
850850 plus accumulated interest at the rate of four per cent a year. 718
851851 Sec. 18. Section 20-325 of the general statutes is repealed and the 719
852852 following is substituted in lieu thereof (Effective October 1, 2019): 720
853853 Any person who engages in the business of a leasing agent, real 721
854854 estate broker or real estate salesperson without obtaining a license as 722
855855 provided in this chapter shall be fined not more than one thousand 723
856856 dollars or imprisoned not more than six months or both, and shall be 724
857857 ineligible to obtain a license for one year from the date of conviction of 725
858858 such offense, except that the commission or Commissioner of 726 Raised Bill No. 7300
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862862 LCO No. 5450 24 of 29
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864864 Consumer Protection may grant a license to such person within such 727
865865 one-year period upon application and after a hearing on such 728
866866 application. 729
867867 Sec. 19. Section 20-325b of the general statutes is repealed and the 730
868868 following is substituted in lieu thereof (Effective October 1, 2019): 731
869869 (a) Each written agreement which fixes the compensation to be paid 732
870870 to a real estate broker for the sale, lease or purchase of real property 733
871871 shall contain the following statement in not less than ten point 734
872872 boldface type or in a manner which otherwise stands out significantly 735
873873 from the text immediately preceding any provision of such agreement 736
874874 relating to compensation of the broker: 737
875875 "NOTICE: THE AMOUNT OR RATE OF REAL ESTATE BROKER 738
876876 COMPENSATION IS NOT FIXED BY LAW. IT IS SET BY EACH 739
877877 BROKER INDIVIDUALLY AND MAY BE NEGOTIABLE BETWEEN 740
878878 YOU AND THE BROKER." 741
879879 (b) Each written agreement which fixes the compensation to be paid 742
880880 to a leasing agent for the lease of real property shall contain the 743
881881 following statement in not less than ten point boldface type or in a 744
882882 manner which otherwise stands out significantly from the text 745
883883 immediately preceding any provision of such agreement relating to 746
884884 compensation of the leasing agent: 747
885885 "NOTICE: THE AMOUNT OR RATE OF LEASING AGENT 748
886886 COMPENSATION IS NOT FIXED BY LAW. IT IS SET BY EACH 749
887887 LEASING AGENT INDIVIDUALLY AND MAY BE NEGOTIABLE 750
888888 BETWEEN YOU AND THE LEASING AGENT. " 751
889889 Sec. 20. Section 20-325d of the general statutes is repealed and the 752
890890 following is substituted in lieu thereof (Effective October 1, 2019): 753
891891 On and after January 1, 2018, a real estate broker, leasing agent or 754
892892 real estate salesperson licensed under this chapter who represents a 755
893893 seller, lessor, prospective purchaser or lessee in a real estate transaction 756 Raised Bill No. 7300
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899899 shall disclose, in writing, the identity of his or her client to any party to 757
900900 the transaction who is not represented by another real estate broker, 758
901901 leasing agent or real estate salesperson licensed under this chapter. The 759
902902 real estate broker, leasing agent or real estate salesperson shall make 760
903903 the disclosure required under this section: (1) If the transaction 761
904904 concerns residential real property, as defined in section 20-325c, (A) at 762
905905 the beginning of the first personal meeting concerning the prospective 763
906906 purchaser's or lessee's specific needs in the transaction, or (B) at the 764
907907 beginning of the first personal meeting with the seller or lessor 765
908908 concerning the seller's or lessor's real property; or (2) if the transaction 766
909909 is a commercial real estate transaction, as defined in section 20-311, as 767
910910 amended by this act, before the prospective purchaser or lessee signs 768
911911 the purchase contract or lease. Such disclosure shall be signed by a 769
912912 prospective purchaser or lessee and attached to any offer or agreement 770
913913 to purchase or lease signed by a prospective purchaser or lessee. The 771
914914 Commissioner of Consumer Protection shall adopt such regulations, in 772
915915 accordance with chapter 54, as the commissioner deems necessary to 773
916916 carry out the provisions of this section. 774
917917 Sec. 21. Section 20-325h of the general statutes is repealed and the 775
918918 following is substituted in lieu thereof (Effective October 1, 2019): 776
919919 (a) No real estate licensee shall: (1) Reveal confidential information 777
920920 concerning a person whom the real estate licensee represented either 778
921921 as an agent, designated buyer agent or a designated seller agent; (2) 779
922922 use confidential information concerning that person to the person's 780
923923 disadvantage; or (3) use confidential information concerning that 781
924924 person for the real estate broker's, leasing agent's or real estate 782
925925 salesperson's advantage or the advantage of a third party, except as 783
926926 required by legal process, as necessary to defend the real estate broker, 784
927927 leasing agent or real estate salesperson from allegations of wrongful or 785
928928 negligent conduct, or as necessary to prevent the commission of a 786
929929 crime. 787
930930 (b) As used in this section, "confidential information" means facts 788
931931 concerning a person's assets, liabilities, income, expenses, motivations 789 Raised Bill No. 7300
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937937 to purchase, rent or sell real property and previous offers received or 790
938938 made to purchase or lease real property which are not authorized by 791
939939 the client, a matter of general knowledge, part of a public record or file 792
940940 to which access is authorized pursuant to section 1-210 or otherwise 793
941941 subject to disclosure under any other provision of the general statutes 794
942942 or any regulation of Connecticut state agencies. 795
943943 Sec. 22. Section 20-325m of the general statutes is repealed and the 796
944944 following is substituted in lieu thereof (Effective October 1, 2019): 797
945945 Any real estate broker licensed under the provisions of this chapter 798
946946 who engages in the real estate business, as defined in section 20-311, as 799
947947 amended by this act, shall retain the following records for a period of 800
948948 not less than seven years after any real estate transaction closes, all 801
949949 funds held in escrow for such transaction are disbursed or the listing 802
950950 agreement or buyer or tenant representation agreement expires, 803
951951 whichever occurs later: (1) All purchase contracts, leases, options, 804
952952 written offers or counteroffers drafted by such broker or on behalf of 805
953953 such broker; (2) the listing agreement or buyer or tenant representation 806
954954 agreement, any extensions of or amendments to such agreements and 807
955955 any disclosures or agreements required pursuant to sections 20-325a to 808
956956 20-325l, inclusive; and (3) all canceled checks, unused checks, 809
957957 checkbooks and bank statements for any escrow or trust account 810
958958 maintained pursuant to section 20-324k. Such records may be retained 811
959959 in any format, electronic or otherwise, capable of producing an 812
960960 accurate copy in paper format of the original document. Leasing 813
961961 agents shall retain copies of any property owner representation or 814
962962 employment agreements and all tenant representation agreements for 815
963963 a period of seven years. 816
964964 Sec. 23. Section 20-328 of the general statutes is repealed and the 817
965965 following is substituted in lieu thereof (Effective October 1, 2019): 818
966966 The Commissioner of Consumer Protection, with advice and 819
967967 assistance from the commission, may adopt regulations, in accordance 820
968968 with chapter 54, relating to the form and manner of filing applications 821 Raised Bill No. 7300
969969
970970
971971
972972 LCO No. 5450 27 of 29
973973
974974 for licenses under this chapter and the manner in which licensed real 822
975975 estate brokers and licensed leasing agents, real estate salespersons 823
976976 shall conduct the real estate business. 824
977977 Sec. 24. Section 20-329 of the general statutes is repealed and the 825
978978 following is substituted in lieu thereof (Effective October 1, 2019): 826
979979 The provisions of this chapter concerning the licensure of real estate 827
980980 brokers, leasing agents and real estate salespersons shall not apply to: 828
981981 (1) Any person who as owner or lessor performs any of the acts 829
982982 enumerated in section 20-311, as amended by this act, with reference to 830
983983 property owned, leased or sought to be acquired or leased by the 831
984984 person, or to the person's regular employees who are employed as on-832
985985 site residential superintendents or custodians, with respect to the 833
986986 property so owned or leased or sought to be acquired or leased when 834
987987 such acts are performed in the regular course of, or incident to, the 835
988988 management of such property and the investment therein; (2) any 836
989989 person acting as attorney-in-fact under a duly executed power of 837
990990 attorney from the owner authorizing the final consummation by 838
991991 performance of any contract for the sale, leasing or exchange of real 839
992992 estate, or to service rendered by any attorney-at-law in the 840
993993 performance of the attorney-at-law's duties as such attorney-at-law; (3) 841
994994 a receiver, trustee in bankruptcy, administrator, executor or other 842
995995 fiduciary, while acting as such, or any person selling real estate under 843
996996 order of any court, or to a trustee acting under a trust agreement, deed 844
997997 of trust or will, or the regular salaried employees thereof; (4) witnesses 845
998998 in court as to the values of real estate; (5) persons in the employ of the 846
999999 federal or state government or any political subdivision thereof while 847
10001000 acting in the course of such employment; (6) any employee of any 848
10011001 nonprofit housing corporation that (A) has been certified as a tax-849
10021002 exempt organization under Section 501(c)(3) of the Internal Revenue 850
10031003 Code of 1986, or any subsequent corresponding internal revenue code 851
10041004 of the United States, as from time to time amended, and manages a 852
10051005 housing project, or (B) manages a housing project assisted in whole or 853
10061006 in part by the federal government pursuant to Section 8 of The United 854
10071007 States Housing Act of 1937, as amended from time to time, while such 855 Raised Bill No. 7300
10081008
10091009
10101010
10111011 LCO No. 5450 28 of 29
10121012
10131013 employee is performing duties in the regular course of, or incidental 856
10141014 to, the management of such housing project; (7) any person licensed to 857
10151015 maintain or operate a mobile manufactured home park under chapter 858
10161016 412 who performs any of the acts enumerated in section 20-311, as 859
10171017 amended by this act, with reference to lots or mobile manufactured 860
10181018 homes within the park or to the person's employees with respect to lots 861
10191019 or mobile manufactured homes within such park when such acts are 862
10201020 performed in the regular course of, or incidental to, the management of 863
10211021 such property and the investment therein; (8) persons licensed as 864
10221022 sellers of mobile manufactured homes under section 21-67; or (9) any 865
10231023 person or such person's regular employee who, as owner, lessor, 866
10241024 licensor, manager, representative or agent manages, leases, or licenses 867
10251025 space on or in a tower, building or other structure for (A) "personal 868
10261026 wireless services facilities" or facilities for "private mobile service" as 869
10271027 those terms are defined in 47 USC 332, which facilities shall be 870
10281028 unattended, and the installation and maintenance of related devices 871
10291029 authorized by the Federal Communications Commission, and ancillary 872
10301030 equipment used to operate such devices and equipment shelters 873
10311031 therefor, in an area not to exceed three hundred sixty square feet for 874
10321032 any one service established by the Federal Communications 875
10331033 Commission in 47 CFR, as amended from time to time, by a provider 876
10341034 of any such service, and (B) any right appropriate to access such 877
10351035 facilities and connect or use utilities in connection with such facilities. 878
10361036 This act shall take effect as follows and shall amend the following
10371037 sections:
10381038
10391039 Section 1 October 1, 2019 20-311
10401040 Sec. 2 October 1, 2019 20-311b
10411041 Sec. 3 October 1, 2019 20-312
10421042 Sec. 4 October 1, 2019 20-312a
10431043 Sec. 5 October 1, 2019 20-312b
10441044 Sec. 6 October 1, 2019 20-314
10451045 Sec. 7 October 1, 2019 20-316
10461046 Sec. 8 October 1, 2019 20-317
10471047 Sec. 9 October 1, 2019 20-319
10481048 Sec. 10 October 1, 2019 20-319a Raised Bill No. 7300
10491049
10501050
10511051
10521052 LCO No. 5450 29 of 29
10531053
10541054 Sec. 11 October 1, 2019 20-320
10551055 Sec. 12 October 1, 2019 20-320a
10561056 Sec. 13 October 1, 2019 20-320b
10571057 Sec. 14 October 1, 2019 20-323
10581058 Sec. 15 October 1, 2019 20-324a
10591059 Sec. 16 October 1, 2019 20-324b
10601060 Sec. 17 October 1, 2019 20-324e
10611061 Sec. 18 October 1, 2019 20-325
10621062 Sec. 19 October 1, 2019 20-325b
10631063 Sec. 20 October 1, 2019 20-325d
10641064 Sec. 21 October 1, 2019 20-325h
10651065 Sec. 22 October 1, 2019 20-325m
10661066 Sec. 23 October 1, 2019 20-328
10671067 Sec. 24 October 1, 2019 20-329
10681068
10691069 Statement of Purpose:
10701070 To create a new license for leasing agents.
10711071 [Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline,
10721072 except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is
10731073 not underlined.]
10741074