LCO No. 4052 1 of 10 General Assembly Raised Bill No. 6634 January Session, 2023 LCO No. 4052 Referred to Committee on INSURANCE AND REAL ESTATE Introduced by: (INS) AN ACT CONCERNING NOTIFICATION OF PROPER PERMITTING PRIOR TO A HOME'S SALE. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. Subsection (d) of section 20-327b of the general statutes is 1 repealed and the following is substituted in lieu thereof (Effective October 2 1, 2023): 3 (d) The Commissioner of Consumer Protection shall, within available 4 appropriations, prescribe the written residential condition reports 5 required by this section and sections 20-327c to 20-327e, inclusive. The 6 written residential condition reports shall be based upon templates that 7 the commissioner shall prescribe. Such templates shall: Fit on pages 8 being not more than eight and one-half inches in height and eleven 9 inches in width, with type size no smaller than nine-point type, other 10 than checkboxes or section headers, which may be in a smaller size; 11 include the address of the subject property on each page; include page 12 numbers on each page; include section headings in bold type and 13 include space for the buyer and the seller's initials on each page, except 14 the signature page. Each written residential condition report, other than 15 Raised Bill No. 6634 LCO No. 4052 2 of 10 the written residential condition report required pursuant to 16 subsections (g) and (h) of this section, shall contain the following, in the 17 order indicated: 18 (1) A section entitled "Instructions to Sellers" 19 You MUST answer ALL questions to the best of your knowledge. 20 Identify/Disclose any problems regarding the subject property. 21 YOUR REAL ESTATE LICENSEE CANNOT COMPLETE THIS 22 FORM ON YOUR BEHALF. 23 UNK means Unknown, N/A means Not Applicable. 24 If you need additional space to complete any answer or explanation, 25 attach additional page(s) to this form. Include subject property address, 26 seller's name and the date. 27 (2) Pursuant to the Uniform Property Condition Disclosure Act, the 28 seller is obligated to answer the following questions and to disclose 29 herein any knowledge of any problem regarding the following: 30 (A) A subsection entitled "Subject Property" 31 (i) Name of seller(s) 32 (ii) Street address, municipality, zip code 33 (B) A subsection entitled "General Information" 34 (i) Indicate the YEAR the structure was built: 35 (ii) Indicate HOW LONG you have occupied the property: If not 36 applicable, indicate with N/A. 37 (iii) Does anyone else claim to own any part of your property, 38 including, but not limited to, any encroachment(s)? If YES, explain: 39 (iv) Does anyone other than you have or claim to have any right to 40 Raised Bill No. 6634 LCO No. 4052 3 of 10 use any part of your property, including, but not limited to, any 41 easement or right-of-way? If YES, explain: 42 (v) Is the property in a flood hazard area or an inland wetlands area? 43 If YES, explain: 44 (vi) Are you aware of the presence of a dam on the property that has 45 been or is required to be registered with the Department of Energy and 46 Environmental Protection? If YES, explain: 47 (vii) Do you have any reason to believe that the municipality in which 48 the subject property is located may impose any assessment for purposes 49 such as sewer installation, sewer improvements, water main 50 installation, water main improvements, sidewalks or other 51 improvements? If YES, explain: 52 (viii) Is the property located in a municipally designated village 53 district, municipally designated historic district or listed on the National 54 Register of Historic Places? If YES, explain: 55 (ix) Special Statement: Information concerning village districts and 56 historic districts may be obtained from the municipality's village or 57 historic district commission, if applicable. 58 (x) Is the property located in a special tax district? If YES, explain: 59 (xi) Is the property subject to any type of land use restrictions, other 60 than those contained within the property's chain of title or that are 61 necessary to comply with state laws or municipal zoning? If YES, 62 explain: 63 (xii) Is the property located in a common interest community? If YES, 64 is it subject to any community or association dues or fees? Please 65 explain: 66 (xiii) Do you have any knowledge of prior or pending litigation, 67 government agency or administrative actions, orders or liens on the 68 property related to the release of any hazardous substance? If YES, 69 Raised Bill No. 6634 LCO No. 4052 4 of 10 explain: 70 (C) A subsection entitled "Leased Equipment" 71 Does the property include any Leased or Rented Equipment that 72 would necessitate or obligate either of the following: The assignment or 73 transfer of the lease or rental agreement(s) to the buyer or the 74 replacement or substitution of the equipment by the buyer? If YES, 75 indicate by checking ALL items that apply: PROPANE FUEL TANK; 76 WATER HEATER; SECURITY ALARM SYSTEM; FIRE ALARM 77 SYSTEM; SATELLITE DISH ANTENNA; WATER TREATMENT 78 SYSTEM; SOLAR DEVICES; MAJOR APPLIANCES; OTHER 79 (D) A subsection entitled "Mechanical/Utility Systems" 80 (i) Heating system problems? If YES, explain. List Fuel Types. 81 (ii) Hot water heater Type: Age: Hot water problems? If YES, explain: 82 (iii) Is there an underground storage tank? If YES, give AGE of tank 83 and LOCATION. 84 (iv) Are you aware of any problems with the underground storage 85 tank? If YES, explain: 86 (v) During the time you have owned the property, has there ever been 87 an underground storage tank located on the property? If YES, has it been 88 removed? If YES, what was the date of removal and what was the name 89 and address of the person or business who removed such underground 90 storage tank? Provide any and all written documentation of such 91 removal within your control or possession by attaching a copy of such 92 documentation to this form. 93 (vi) Air conditioning problems? If YES, explain: Air conditioning 94 Type: Central; Window; Other 95 (vii) Plumbing system problems? If YES, explain: 96 (viii) Electrical System problems? If YES, explain: 97 Raised Bill No. 6634 LCO No. 4052 5 of 10 (ix) Electronic security system problems? If YES, explain: 98 (x) Are there carbon monoxide or smoke detectors located in a 99 dwelling on the property? If YES, state the NUMBER of such detectors 100 and whether there have been problems with such detectors; 101 (xi) Fire sprinkler system problems? If YES, explain: 102 (E) A subsection entitled "Water System" 103 (i) Domestic Water System Type: Public; Private Well; Other 104 (ii) If Public Water: 105 (I) Is there a separate expense/fee for water usage? If YES, is the 106 expense/fee for water usage flat or metered? Give the AMOUNT and 107 explain: 108 (II) Are there any UNPAID water charges? If YES, state the amount 109 unpaid: 110 (iii) If Private Well: 111 Has the well water been tested for contaminants/volatile organic 112 compounds? If YES, attach a copy of the report. 113 (iv) If Public Water or Private Well: Are you aware of any problems 114 with the well, or with the water quality, quantity, recovery, or pressure? 115 If YES, explain: 116 (F) A subsection entitled "Sewage Disposal System" 117 (i) Sewage Disposal System Type: Public; Septic; Cesspool; Other 118 (ii) If Public Sewer: 119 (I) Is there a separate charge made for sewer use? If YES, is it Flat or 120 Metered? 121 (II) If it is a Flat amount, state amount and due dates: 122 Raised Bill No. 6634 LCO No. 4052 6 of 10 (III) Are there any UNPAID sewer charges? If any unpaid sewer 123 charges, state the amount: 124 (iii) If Private: 125 (I) Name of service company 126 (II) Date last pumped: AND frequency: 127 (III) For any sewage system, are there problems? If YES, explain: 128 (G) A subsection entitled "Asbestos/Lead" 129 (i) Are asbestos containing insulation or building materials present? 130 If YES, location: 131 (ii) Is lead paint present? If YES, location: 132 (iii) Is lead plumbing present? If YES, location: 133 (H) A subsection entitled "Building/Structure/Improvements" 134 (i) Is the foundation made of concrete? If NO, explain: 135 (ii) Foundation/Slab problems or settling? If YES, explain: 136 (iii) Basement Water Seepage/Dampness? If YES, explain Amount, 137 Frequency and Location: 138 (iv) Sump pump problems? If YES, explain: 139 (v) Do you have any knowledge of any testing or inspection done by 140 a licensed professional related to a foundation on the property? If YES, 141 disclose the testing or inspection method, the areas or locations that 142 were tested or inspected, the results of such testing or inspection and 143 attach a copy of the report concerning such testing or inspection. 144 (vi) Do you have any knowledge of any repairs related to a 145 foundation on the property? If YES, describe such repairs, disclose the 146 areas repaired and attach a copy of the report concerning such repairs. 147 Raised Bill No. 6634 LCO No. 4052 7 of 10 (vii) Do you have any knowledge related to the presence of pyrrhotite 148 in a foundation on the property? If YES, explain: 149 (viii) Roof type; Age? 150 (ix) Roof leaks? If YES, explain: 151 (x) Exterior siding problems? If YES, explain: 152 (xi) Chimney, Fireplace, Wood or Coal Stove problems? If YES, 153 explain: 154 (xii) Patio/deck problems? If YES, explain: 155 (xiii) If constructed of Wood, is the Wood Treated or Untreated? 156 (xiv) Driveway problems? If YES, explain: 157 (xv) Water drainage problems? If YES, explain: 158 (xvi) Interior Floor, Wall and/or Ceiling problems? If YES, explain: 159 (xvii) Fire and/or Smoke damage? If YES, explain: 160 (xviii) Termite, Insect, Rodent or Pest Infestation problems? If YES, 161 explain: 162 (xix) Rot or Water damage problems? If YES, explain: 163 (xx) Is house insulated? If YES, Type: Location: 164 (xxi) Has a test for Radon been performed? If YES, attach a copy of 165 the report. 166 (xxii) Is there a Radon Control System in place? If YES, explain: 167 (xxiii) Has a Radon control system been in place in the previous 12 168 months? If YES, explain: 169 (xxiv) During the time you owned the property, did you obtain 170 proper building permits from the relevant municipality for any changes 171 Raised Bill No. 6634 LCO No. 4052 8 of 10 to the property, including, but not limited to, renovations, upgrades or 172 remodeling on the property? If NO, explain: 173 (I) The Seller should attach additional pages to further explain any 174 item(s) above. Indicate here the number of additional pages attached: 175 (J) Questions contained in subparagraphs (A) to (I), inclusive, of this 176 subdivision shall contain checkboxes indicating "yes", "no", "not 177 applicable" or "unknown". 178 (3) The written residential condition report shall contain the 179 following immediately below the questions contained in subparagraphs 180 (A) to (I), inclusive, of subdivision (2) of this subsection: 181 A certification by the seller in the following form: 182 SELLER'S CERTIFICATION 183 "To the extent of the seller's knowledge as a property owner, the seller 184 acknowledges that the information contained above is true and accurate 185 for those areas of the property listed. In the event a real estate broker or 186 salesperson is utilized, the seller authorizes the brokers or salespersons 187 to provide the above information to prospective buyers, selling agents 188 or buyers' agents. 189 T1 .... (Date) .... (Seller) T2 .... (Date) .... (Seller)" T3 (4) The written residential condition report shall contain the 190 following in a separate section immediately below the seller's 191 certification: 192 IMPORTANT INFORMATION 193 (A) RESPONSIBILITIES OF REAL ESTATE BROKERS 194 This report in no way relieves a real estate broker of the broker's 195 obligation under the provisions of section 20-328-5a of the Regulations 196 Raised Bill No. 6634 LCO No. 4052 9 of 10 of Connecticut State Agencies to disclose any material facts. Failure to 197 do so could result in punitive action taken against the broker, such as 198 fines, suspension or revocation of license. 199 (B) STATEMENTS NOT TO CONSTITUTE A WARRANTY 200 Any representations made by the seller on the written residential 201 condition report shall not constitute a warranty to the buyer. 202 (C) NATURE OF REPORT 203 This Residential Property Condition Report is not a substitute for 204 inspections, tests and other methods of determining the physical 205 condition of property. 206 (D) INFORMATION ON THE RESIDENCE OF CONVICTED 207 FELONS 208 Information concerning the residence address of a person convicted 209 of a crime may be available from law enforcement agencies or the 210 Department of Public Safety. 211 (E) BUILDING PERMITS AND CERTIFICATES OF OCCUPANCY 212 Prospective buyers should consult with the municipal building 213 official in the municipality in which the property is located to confirm 214 that building permits and certificates of occupancy have been issued for 215 work on the property. 216 (F) HOME INSPECTION 217 Buyers should have the property inspected by a licensed home 218 inspector. 219 (G) CONCRETE FOUNDATION 220 Prospective buyers may have a concrete foundation inspected by a 221 licensed professional engineer who is a structural engineer for 222 deterioration of the foundation due to the presence of pyrrhotite. 223 Raised Bill No. 6634 LCO No. 4052 10 of 10 (H) DAM 224 Information concerning the registration and categorization of a dam 225 on the property may be obtained from the Department of Energy and 226 Environmental Protection. 227 (5) The written residential condition report shall contain the 228 following immediately below the statements contained in 229 subparagraphs (A) to (H), inclusive, of subdivision (4) of this subsection: 230 A certification by the buyer in the following form: 231 BUYER'S CERTIFICATION 232 "The buyer is urged to carefully inspect the property and, if desired, 233 to have the property inspected by an expert. The buyer understands that 234 there are areas of the property for which the seller has no knowledge 235 and that this report does not encompass those areas. The buyer also 236 acknowledges that the buyer has read and received a signed copy of this 237 report from the seller or seller's agent. 238 T4 .... (Date) .... (Buyer) T5 .... (Date) .... (Buyer)" This act shall take effect as follows and shall amend the following sections: Section 1 October 1, 2023 20-327b(d) Statement of Purpose: To require that a seller of residential property provide notification of proper permitting to a prospective buyer. [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.]