Connecticut 2019 Regular Session

Connecticut Senate Bill SB00347 Compare Versions

Version 1 (Old)

Version 2 (New)

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3		-	LCO 6108 \\PRDFS1\SCOUSERS\RICCIARDIK\WS\2019SB-00347-R02-
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7	5		General Assembly Committee Bill No. 347
8	6		January Session, 2019
9	7		LCO No. 6108
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12	10		Referred to Committee on JUDICIARY
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14	12
15	13		Introduced by:
16	14		(JUD)
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20	18		AN ACT CONCERNING CO NTRACTS FOR THE SALE OF REAL
21	19		PROPERTY LOCATED IN THIS STATE.
22	20		Be it enacted by the Senate and House of Representatives in General
23	21		Assembly convened:
24	22
25	23		Section 1. (NEW) (Effective October 1, 2019) (a) As used in this 1
26	24		section: 2
27	25		(1) "Buyer" means a person that contracts to buy real property 3
28	26		located in this state; and 4
29	27		(2) "Financial institution" means a bank, as defined in section 36a-2 5
30	28		of the general statutes, an out-of-state bank, as defined in section 36a-2 6
31	29		of the general statutes, an institutional lender or any subsidiary or 7
32	30		affiliate of such bank, out-of-state bank or institutional lender, that 8
33	31		directly or indirectly acquires the real property pursuant to strict 9
34	32		foreclosure, foreclosure by sale or deed-in-lieu of foreclosure, and with 10
35	33		the intent of ultimately transferring the property, or other lender 11
36	34		licensed by the Department of Banking. 12
37	35		(b) No contract between a buyer and a financial institution, or entity 13
38		-	acting on behalf of such financial institution, including, but not limited 14 Committee Bill No. 347
	36	+	acting on behalf of such financial institution, including, but not limited 14
	37	+	Committee Bill No. 347
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45	42		to, a corporation, limited liability corporation, asset management 15
46	43		company or other corporate entity, involving the sale of real property 16
47	44		located in this state shall contain any provision by which the financial 17
48	45		institution offers the buyer the option of using the financial 18
49	46		institution's preferred provider of services that are an essential 19
50	47		component of a real estate closing, including, but not limited to, title 20
51	48		insurance services, escrow services, attorney services and any other 21
52	49		real estate closing services that the financial institution offers to 22
53	50		provide on behalf of the buyer in connection with a real estate closing. 23
54	51		On and after October 1, 2019, any provision of a contract entered into 24
55	52		between a buyer and seller involving the sale of real property located 25
56	53		in this state that contains any such provision shall be void as against 26
57	54		the public policy of this state. 27
58	55		This act shall take effect as follows and shall amend the following
59	56		sections:
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61	58		Section 1 October 1, 2019 New section
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63		-	JUD Joint Favorable
	60	+	Statement of Purpose:
	61	+	To declare void as against the public policy certain real estate contracts
	62	+	that encourage a buyer of real property to use the real estate closing
	63	+	services offered by a financial institution that is the seller of the real
	64	+	property.
	65	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline,
	66	+	except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is
	67	+	not underlined.]
	68	+
	69	+	Co-Sponsors: SEN. FASANO, 34th Dist.
	70	+
	71	+	S.B. 347
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