LCO No. 6108 1 of 2
General Assembly Committee Bill No. 347
January Session, 2019
LCO No. 6108
Referred to Committee on JUDICIARY
Introduced by:
(JUD)
AN ACT CONCERNING CO NTRACTS FOR THE SALE OF REAL
PROPERTY LOCATED IN THIS STATE.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. (NEW) (Effective October 1, 2019) (a) As used in this 1
section: 2
(1) "Buyer" means a person that contracts to buy real property 3
located in this state; and 4
(2) "Financial institution" means a bank, as defined in section 36a-2 5
of the general statutes, an out-of-state bank, as defined in section 36a-2 6
of the general statutes, an institutional lender or any subsidiary or 7
affiliate of such bank, out-of-state bank or institutional lender, that 8
directly or indirectly acquires the real property pursuant to strict 9
foreclosure, foreclosure by sale or deed-in-lieu of foreclosure, and with 10
the intent of ultimately transferring the property, or other lender 11
licensed by the Department of Banking. 12
(b) No contract between a buyer and a financial institution, or entity 13
acting on behalf of such financial institution, including, but not limited 14
Committee Bill No. 347
LCO No. 6108 2 of 2
to, a corporation, limited liability corporation, asset management 15
company or other corporate entity, involving the sale of real property 16
located in this state shall contain any provision by which the financial 17
institution offers the buyer the option of using the financial 18
institution's preferred provider of services that are an essential 19
component of a real estate closing, including, but not limited to, title 20
insurance services, escrow services, attorney services and any other 21
real estate closing services that the financial institution offers to 22
provide on behalf of the buyer in connection with a real estate closing. 23
On and after October 1, 2019, any provision of a contract entered into 24
between a buyer and seller involving the sale of real property located 25
in this state that contains any such provision shall be void as against 26
the public policy of this state. 27
This act shall take effect as follows and shall amend the following
sections:
Section 1 October 1, 2019 New section
Statement of Purpose:
To declare void as against the public policy certain real estate contracts
that encourage a buyer of real property to use the real estate closing
services offered by a financial institution that is the seller of the real
property.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline,
except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is
not underlined.]
Co-Sponsors: SEN. FASANO, 34th Dist.
S.B. 347