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General Assembly Raised Bill No. 6769
January Session, 2023
LCO No. 4822
Referred to Committee on GENERAL LAW
Introduced by:
(GL)
AN ACT CONCERNING THE DEPARTMENT OF CONSUMER
PROTECTION'S RECOMMENDATIONS REGARDING REAL ESTATE
LICENSING AND ENFORCEMENT.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Section 20-311 of the general statutes is repealed and the 1
following is substituted in lieu thereof (Effective April 1, 2024): 2
As used in this chapter and sections 2 to 7, inclusive, of this act, unless 3
the context otherwise requires: 4
(1) "Advertising" (A) means disseminating, publishing or causing to 5
be posted by way of any (i) print media, including, but not limited to, 6
outdoor signage and periodicals, (ii) audio or video broadcast, 7
streaming or other electronic dissemination, or (iii) written or 8
photographic material disseminated or posted via online, telephonic 9
notification, electronic mail or other electronic means, and (B) does not 10
include any (i) stockholder communication, including, but not limited 11
to, any annual report, interim financial report, proxy material, 12
registration statement, securities prospectus or application for listing a 13
security on a stock exchange, (ii) prospectus, property report, offering 14 Raised Bill No. 6769
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statement or other document that any federal agency or agency of 15
another state requires be delivered to a prospective purchaser, (iii) 16
communication addressed to, and relating to the account of, a person 17
who has executed a contract for the purchase of a subdivider's lands, 18
except if such communication concerns the sale of additional lands, or 19
(iv) press release or other communication delivered to a media outlet for 20
general information or public relations purposes, provided no charge is 21
imposed by such media outlet for publication or use of any part of such 22
communication; 23
(2) "Affiliated" means to have a working relationship with a real 24
estate licensee by way of an (A) employer-employee relationship, or (B) 25
independent contractor relationship; 26
(3) "Associate broker" means a real estate broker who (A) is affiliated 27
with a supervising licensee as an independent contractor or employed 28
by a supervising licensee, and (B) has the authority to engage in the real 29
estate business on behalf of such supervising licensee; 30
(4) "Business entity" means any association, corporation, limited 31
liability company, limited liability partnership or partnership; 32
[(1)] (5) "Commercial real estate transaction" means any transaction 33
involving the sale, exchange, lease or sublease of real property other 34
than (A) real property containing any building or structure occupied, or 35
intended to be occupied, by not more than four families, or (B) a single 36
building lot to be used for family or household purposes; 37
[(2)] (6) "Commission" means the Connecticut Real Estate 38
Commission appointed under the provisions of section 20-311a; 39
(7) "Confidential information" means any fact concerning a person's 40
assets, expenses, income, liabilities, motivations to purchase, rent or sell 41
real property and previous offers received or made to purchase or lease 42
real property which (A) a client has not authorized for release, or (B) is 43
not (i) a matter of general knowledge, (ii) part of a public record or file 44
to which access is authorized pursuant to section 1-210, or (iii) otherwise 45 Raised Bill No. 6769
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subject to disclosure under any other provision of the general statutes 46
or regulations of Connecticut state agencies; 47
(8) "Custodial broker" means any individual who is (A) licensed as a 48
real estate broker, and (B) temporarily appointed solely to (i) conclude 49
the real estate business matters of another broker who is deceased or 50
incapacitated, (ii) transition such matters to a real estate broker who is 51
alive and not incapacitated, or (iii) assist in transitioning the deceased 52
or incapacitated broker's ownership interest in a business entity that is 53
engaged in the real estate business for the purpose of satisfying the 54
requirements established in section 20-312, as amended by this act; 55
(9) "Department" means the Department of Consumer Protection; 56
[(3)] (10) "Designated agency" means the appointment by a real estate 57
broker of one or more brokers or salespersons affiliated with or 58
employed by the real estate broker to solely represent a buyer or tenant 59
as a designated buyer's agent and appoint another to represent a seller 60
or landlord as a designated seller's agent in a transaction; 61
(11) "Designated broker" means the individual real estate broker 62
whom a real estate broker business entity names as the individual real 63
estate broker who is responsible for the supervision and overall 64
operation of such business entity's engagement in the real estate 65
business in this state; 66
[(4)] (12) "Designated buyer agent" means a [broker or salesperson] 67
real estate licensee, other than a leasing agent, who is designated by the 68
real estate broker by whom such real estate licensee is employed, or with 69
whom [the broker or salesperson] such real estate licensee is affiliated, 70
[or employed to] solely to represent a named buyer or tenant client of 71
the real estate broker during the term of a buyer representation 72
agreement or authorization; 73
[(5)] (13) "Designated seller agent" means a [broker or salesperson] 74
real estate licensee, other than a leasing agent, who is designated by the 75
real estate broker by whom such real estate licensee is employed, or with 76 Raised Bill No. 6769
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whom [the broker or salesperson] such real estate licensee is affiliated, 77
[or employed to] solely to represent a named seller or landlord client of 78
the real estate broker during the term of a listing agreement or 79
authorization; 80
(14) "Development owner" means (A) the owner of record of a 81
multiunit development that is offered for lease, or (B) the parent 82
company of such owner of record if such parent company holds a one 83
hundred per cent ownership interest in such owner of record; 84
[(6) "Engaging in the real estate business"] (15) "Engage in the real 85
estate business" means to, while acting for another and for a fee, 86
commission or other valuable consideration, [in the listing for sale, 87
selling, exchanging, buying or renting, or offering or attempting to 88
negotiate a sale, exchange, purchase or rental of] negotiate for or offer, 89
or attempt to list for sale, sell, exchange, buy or rent, an estate or interest 90
in real estate or [a resale of] to resell a mobile manufactured home, as 91
defined in [subdivision (1) of section 21-64, or collecting upon a loan 92
secured or to be secured by a mortgage or other encumbrance upon or 93
transfer of real estate] section 21-64; 94
(16) "Incapacity" means any physical or mental incapacity which 95
prevents an individual from substantially satisfying such individual's 96
duties and responsibilities as a real estate licensee; 97
(17) "Influence residential real estate appraisals" includes, but is not 98
limited to, a refusal or intentional failure to refer a homebuyer, or 99
encouraging other real estate licensees not to refer a homebuyer, to a 100
mortgage broker or lender, as such terms are defined in section 36a-760, 101
based solely on the fact that the mortgage broker or lender uses an 102
appraiser who has provided an appraisal reflecting a fair market value 103
estimate that was less than the sale contract price; 104
(18) "Leasing agent" means any individual who (A) acts as an agent 105
for a principal for a commission, fee or other valuable consideration, and 106
(B) engages in leasing or renting activity, including, but not limited to, 107
(i) collecting security deposits, (ii) offering or attempting to negotiate a 108 Raised Bill No. 6769
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rental, or (iii) collecting, offering or attempting to collect rent for the use 109
of real estate; 110
(19) "Multiunit development" means any residential property with at 111
least fifty units that are leased or available to be leased; 112
(20) "Negotiate" means acting, directly or indirectly, as an 113
intermediary by facilitating, or participating in, communications 114
between parties related to the parties' interests in a real estate or mobile 115
manufactured home transaction; 116
(21) "Nonmaterial fact concerning real property" means any fact, set 117
of facts or circumstances surrounding real property which includes, but 118
is not limited to, the fact that (A) an occupant of real property is or has 119
been infected with a disease on the list of reportable diseases, emergency 120
illnesses and health conditions issued by the Commissioner of Public 121
Health pursuant to section 19a-2a, or (B) the real property was at any 122
time suspected to have been the site of a death or felony; 123
[(7)] (22) "Person" means any individual [, partnership, association, 124
limited liability company or corporation] or business entity; 125
(23) "Promotional note" (A) means any promissory note that (i) is 126
secured by a trust deed executed (I) on unimproved real property, (II) 127
after construction of an improvement of real property but before the first 128
sale of such property so improved, or (III) as a means of financing the 129
first purchase of such property so improved, and (ii) is subordinate, or 130
which by its terms may become subordinate, to any other trust deed on 131
such property, and (B) does not include any note which was executed 132
more than three years prior to being offered for sale or was secured by 133
a first trust deed on real property in a subdivision, which evidences a 134
bona fide loan made in connection with the financing of the usual costs 135
of the development of one or more residential, commercial or industrial 136
buildings on the property under a written agreement providing for 137
either the disbursement of the loan funds as costs are incurred or in 138
relation to the progress of the work and providing for title insurance 139
insuring the priority of the security as against mechanic's liens or for the 140 Raised Bill No. 6769
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final disbursement of at least ten per cent of the loan funds after the 141
expiration of the period for the filing of mechanic's liens; 142
(24) "Prospective party" means any person that communicates with a 143
real estate licensee in contemplation of potential representation by the 144
real estate licensee in a real estate transaction; 145
[(8)] (25) "Real estate broker" or "broker" means (A) any person [, 146
partnership, association, limited liability company or corporation which 147
acts for another person or entity and for a fee, commission or other 148
valuable consideration, lists for sale, sells, exchanges, buys or rents, or 149
offers or attempts to negotiate a sale, exchange, purchase or rental of, an 150
estate or interest in real estate, or a resale of a mobile manufactured 151
home, as defined in subdivision (1) of section 21-64, or collects or offers 152
or attempts to collect rent for the use of real estate] engaged in the real 153
estate business, and (B) any person [, partnership, association, limited 154
liability company or corporation] employed by or on behalf of the owner 155
or owners of lots or other parcels of real estate, at a stated salary, upon 156
commission, upon a salary and commission basis or otherwise to sell 157
such real estate, or any parts thereof, in lots or other parcels, and who 158
sells or exchanges, or offers, attempts or agrees to negotiate the sale or 159
exchange of, any such lot or parcel of real estate; 160
(26) "Real estate licensee" means any leasing agent, real estate broker 161
or real estate salesperson licensed pursuant to this chapter; 162
[(9)] (27) "Real estate salesperson" or "salesperson" means [a person] 163
any individual, other than an employee whose principal duty is to 164
perform clerical, janitorial or custodial work, who is affiliated with [any 165
real estate broker as an independent contractor or employed by a real 166
estate broker to list for sale, sell or offer for sale, to buy or offer to buy 167
or to negotiate the purchase or sale or exchange of real estate, or to offer 168
for resale, a mobile manufactured home, as defined in subdivision (1) of 169
section 21-64, or to lease or rent or offer to lease, rent or place for rent 170
any real estate, or to collect or offer or attempt to collect rent for the use 171
of real estate] a supervising licensee to (A) engage in the real estate 172 Raised Bill No. 6769
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business for or on behalf of such [real estate broker, or who offers, sells 173
or attempts to sell the real estate or mobile manufactured homes of a 174
licensed broker] supervising licensee, or (B) if such individual is acting 175
for another person as a designated seller agent or designated buyer 176
agent, [lists for sale, sells, exchanges, buys or rents, or offers or attempts 177
to negotiate a sale, exchange, purchase or rental of, an estate or interest 178
in real estate, or a resale of a mobile manufactured home, as defined in 179
subsection (a) of section 21-64, or collects or offers or attempts to collect 180
rent for the use of real estate, but does not include employees of any real 181
estate broker whose principal occupation is clerical work in an office, or 182
janitors or custodians engaged principally in that occupation] engage in 183
the real estate business; 184
(28) "Real estate transaction" means any transaction in which (A) real 185
property is legally transferred to another person, or (B) a lease 186
agreement is executed between a landlord and a tenant; 187
(29) "Residential real property" means any one to four-family 188
residential real estate located in this state, including, but not limited to, 189
(A) a cooperative or condominium where the total number of units in 190
such cooperative or condominium does not exceed four units, and (B) 191
any individual unit within a multiunit development; 192
(30) "School" means any person that offers prelicensing or continuing 193
education courses approved pursuant to this chapter and sections 3 and 194
4 of this act; 195
(31) "Supervising licensee" means the real estate broker that is 196
responsible for controlling and supervising another real estate licensee 197
or a team; 198
[(10)] (32) "Team" means [a group] any combination of at least two 199
licensed real estate brokers, designated brokers or real estate 200
salespersons who are affiliated with the same [sponsoring real estate 201
broker] supervising licensee and engage in advertising as a group using 202
a team name; and 203 Raised Bill No. 6769
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[(11)] (33) "Team name" means the name used to refer to a team in 204
team advertisements. 205
Sec. 2. (NEW) (Effective April 1, 2024) (a) No associate broker shall 206
engage in the real estate business unless the supervising licensee that is 207
responsible for controlling and supervising the associate broker (1) 208
knows that such associate broker is engaging in the real estate business, 209
and (2) has consented to such associate broker engaging in the real estate 210
business. 211
(b) Each supervising licensee shall be responsible for the actions of 212
the associate brokers who are under such supervising licensee's control 213
and supervision to the same extent that such supervising licensee would 214
be responsible for such associate brokers if such associate brokers were 215
real estate salespersons affiliated with such supervising licensee. 216
(c) If an associate broker's affiliation with a supervising licensee is 217
terminated, the associate broker shall notify the department of such 218
termination not later than fourteen calendar days after such termination 219
or such associate broker's affiliation with another supervising licensee, 220
whichever occurs first. 221
(d) Each associate broker shall comply with all advertising 222
requirements and standards that apply to real estate brokers, and shall 223
include the name of the supervising licensee who controls and 224
supervises such associate broker at a prominent location in all of such 225
associate broker's advertisements. 226
Sec. 3. (NEW) (Effective April 1, 2024) (a) (1) A school shall register 227
with the department, in a form and manner prescribed by the 228
Commissioner of Consumer Protection, prior to offering any 229
prelicensing or continuing education course. Such form shall include an 230
attestation by the school that: 231
(A) All courses offered by such school comply with the requirements 232
established in section 4 of this act; and 233 Raised Bill No. 6769
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(B) All instructors teaching courses at such school are qualified 234
pursuant to subsection (c) of this section and section 4 of this act. 235
(2) No school shall offer any prelicensing or continuing education 236
course in this state unless such school maintains an active registration 237
with the department under this section. 238
(b) Each school registration issued pursuant to this section shall 239
expire biennially, and the initial registration fee and renewal fee for each 240
such school registration shall be one hundred dollars. 241
(c) No school shall permit an instructor to teach a course approved 242
under chapter 392 of the general statutes unless such school has 243
determined that the instructor has: 244
(1) At least five years of experience as a practicing real estate licensee; 245
(2) Expertise, or a professional designation from an institute or 246
society, in the field in which such instructor proposes to teach; or 247
(3) Experience teaching a course in a formal education program or 248
has attended an accredited college or university extension instructors' 249
seminar. For collegiate level courses that are part of a degree program, 250
the instructor shall have (A) teaching experience and a master's degree 251
in an appropriate field, or (B) such other combination of qualifications 252
as the commission may, in the commission's discretion, approve. 253
(d) No school shall offer any course that does not satisfy the 254
requirements established in section 4 of this act. 255
Sec. 4. (NEW) (Effective April 1, 2024) (a) Each school that is registered 256
with the department pursuant to section 3 of this act shall register with 257
the department, in a form and manner prescribed by the Commissioner 258
of Consumer Protection, each prelicensing or continuing education 259
course that such school intends to offer in this state. The fee to register 260
each course under this section shall be fifty dollars, and each course 261
registration application submitted to the department pursuant to this 262
section shall include: 263 Raised Bill No. 6769
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(1) An outline of the course content detailing the total duration of 264
such course and the amount of time spent on each subject covered as 265
part of such course; 266
(2) The name of, and contact information for, each course instructor; 267
(3) A copy of the certificate issued to students upon completion of 268
such course; 269
(4) The cancellation and refund policy available to students for such 270
course; 271
(5) An attestation by the school that such course meets all the 272
requirements established in this section, section 20-314a of the general 273
statutes, as amended by this act, and all regulations adopted pursuant 274
to chapter 392 of the general statutes; and 275
(6) If such course is provided on an in-person basis, the location at 276
which such course is provided on an in-person basis. 277
(b) Notwithstanding subdivision (3) of subsection (a) of this section, 278
a school that offers more than one course may submit to the department 279
a template course completion certificate for the department's 280
consideration. If the department approves a template course completion 281
certificate, the school that submitted such certificate to the department 282
may use such template to issue all course completion certificates and not 283
be required to submit a copy of such certificates to the department 284
pursuant to subdivision (3) of subsection (a) of this section. 285
(c) No prelicensing or continuing education course shall qualify 286
towards the prelicensing or continuing education requirements 287
established for a real estate license under chapter 392 of the general 288
statutes unless such course has been approved by the department 289
pursuant to this section. 290
(d) The department shall not approve any prelicensing course under 291
this section unless such course is provided on an in-person basis or by 292
way of electronic means that incorporates a live online format. 293 Raised Bill No. 6769
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(e) (1) Subject to the provisions of subdivision (2) of this subsection, 294
each school that offers a continuing education course under this section 295
shall ensure that no student may complete such course in less time than 296
the total course duration specified in the application that such school 297
filed with the department for such course pursuant to subsection (a) of 298
this section. 299
(2) If a school offers a course described in subdivision (1) of this 300
subsection by electronic means, the school may satisfy the requirements 301
established in subdivision (1) of this subsection by: 302
(A) Offering a live online course format using telecommunications 303
technology that allows for real-time audio communication between the 304
instructor and students; or 305
(B) Using technology that prohibits a student from completing the 306
course in less time than the total course duration specified in the 307
application that such school filed with the department for such course 308
pursuant to subsection (a) of this section. 309
(f) If a school offers any prelicensing or continuing education course 310
under this section by electronic means that do not allow for real-time 311
audio communication between the instructor and students, such school 312
shall include in such course periodic interactive assessments to confirm 313
each student's level of comprehension of, and engagement with, such 314
course. 315
(g) Each course registration issued pursuant to this section shall 316
expire five years after such registration is issued. 317
Sec. 5. (NEW) (Effective April 1, 2024) (a) If a real estate licensee 318
engages in the real estate business and a buyer or renter of real estate 319
uses an interpreter, other than the real estate licensee or an employee of 320
the real estate licensee, in conducting a real estate transaction or 321
negotiations, the real estate licensee shall provide to the buyer or renter 322
and interpreter, and obtain the buyer's or renter's and interpreter's 323
signatures on, forms containing the following language: 324 Raised Bill No. 6769
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I, (name of buyer or renter), used (name of interpreter) to act as my 325
interpreter during this real estate transaction or these negotiations. The 326
obligations of this contract or other written agreement were explained 327
to me in my native language by the interpreter. I understand the 328
contract or other written agreement. 329
(signature of buyer or renter) 330
(relationship of interpreter to buyer or renter) 331
I, (name of interpreter), acted as interpreter during this real estate 332
transaction or these negotiations. The obligations of the contract or other 333
written agreement were explained to (name of buyer or renter) in their 334
native language. I understand the contract or other written agreement. 335
(signature of interpreter) 336
(relationship of interpreter to buyer or renter). 337
(b) Except as provided in subsection (c) of this section, if a real estate 338
licensee engages in the real estate business and acts as an interpreter for 339
a buyer or renter in conducting a transaction or negotiations, the real 340
estate licensee shall provide to the buyer or renter, and obtain the 341
buyer's or renter's signature on, a form containing the following 342
language written in the buyer's or renter's native language: 343
This real estate transaction or these negotiations were conducted in 344
(buyer's or renter's native language), which is my native language. I 345
voluntarily choose to have the Real Estate (Broker/Salesperson/Leasing 346
Agent) act as my interpreter during the negotiations. The obligations of 347
the contract or other written agreement were explained to me in my 348
native language. I understand the contract or other written agreement. 349
(c) If a language that cannot be reduced to writing is used to conduct 350
a real estate transaction or negotiations, the form required under 351
subsection (b) of this section shall be in the English language. 352
Sec. 6. (NEW) (Effective April 1, 2024) (a) If a real estate broker dies or 353 Raised Bill No. 6769
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is incapacitated, the executor of such broker's estate or any other person 354
who is legally authorized to act on behalf of such broker in a financial 355
transaction may apply to the department, in a form and manner 356
prescribed by the department, for the appointment of a custodial broker. 357
If the department approves an application for the appointment of a 358
custodial broker, the department shall appoint a custodial broker for the 359
deceased or incapacitated broker. Except as provided in subsection (b) 360
of this section, each custodial broker who is appointed pursuant to this 361
subsection shall serve for a term not to exceed one hundred eighty days. 362
(b) The department may, in the department's discretion, extend a 363
custodial broker's term beyond one hundred eighty days if the 364
department receives a hardship application that is submitted to the 365
department in a form and manner prescribed by the department. 366
(c) Each custodial broker shall act to preserve the financial interests 367
of the deceased or incapacitated real estate broker, or the estate of the 368
deceased real estate broker, for whom such custodial broker is 369
appointed. 370
(d) No real estate broker who is appointed as a custodial broker to 371
conclude the business of a deceased or incapacitated individual real 372
estate broker shall negotiate the purchase, sale or lease of any real estate 373
on behalf of such deceased or incapacitated broker unless: 374
(1) The prospective purchaser, seller, lessor or lessee of such real 375
estate entered into a preexisting buyer agreement, listing agreement or 376
leasing agreement with such deceased or incapacitated broker; and 377
(2) The prospective purchaser or lessor of such real estate has 378
executed a contract or paid a deposit to a seller or lessee to reserve a 379
right to purchase or lease such real estate from such seller or lessee. 380
(e) No business entity shall engage in the real estate business while 381
the designated broker for such business entity is deceased or 382
incapacitated unless a custodial broker has been appointed for such 383
business entity. 384 Raised Bill No. 6769
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(f) If a custodial broker is appointed to serve as a designated broker 385
for a business entity, the business entity may engage in the real estate 386
business to the same extent that such business entity would engage in 387
such business if such designated broker was not a custodial broker. 388
(g) No real estate salesperson or team member shall engage in the real 389
estate business while the supervising licensee that is responsible for 390
controlling and supervising such salesperson or team is deceased or 391
incapacitated unless a custodial broker has been appointed for such 392
supervising licensee. 393
Sec. 7. (NEW) (Effective April 1, 2024) (a) No leasing agent shall engage 394
in the real estate business except for leasing or renting real property that 395
is exclusively used for residential occupancy. No licensed real estate 396
broker or salesperson shall be required to obtain a leasing agent license 397
to perform leasing activities. Leasing agents shall not engage in any 398
activity that requires a real estate broker or real estate salesperson's 399
license, including, but not limited to, selling, offering, listing, 400
negotiating, referring or showing for sale, entering into lease-to-own 401
agreements or leasing commercial real estate. A leasing agent shall be 402
employed by a development owner. A leasing agent shall not offer 403
leasing services for any person that is not a development owner. No 404
leasing agent shall engage in the real estate business concerning any 405
property other than on behalf of the owner of record of a multiunit 406
development that employs such leasing agent. A leasing agent shall 407
obtain a written contract from the development owner to demonstrate 408
such employment prior to engaging in any leasing activity at such 409
development. Such contract shall be made available to the department, 410
and produced by the leasing agent in an electronic form, upon a request 411
by the department for such contract. 412
(b) If a leasing agent's affiliation with a development owner is 413
terminated, the leasing agent shall notify the department of such 414
termination not later than fourteen calendar days after such termination 415
or such leasing agent's affiliation with another development owner, 416
whichever occurs first. 417 Raised Bill No. 6769
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Sec. 8. Section 20-311b of the general statutes is repealed and the 418
following is substituted in lieu thereof (Effective April 1, 2024): 419
(a) Within thirty days after the appointment of the members of the 420
commission, the commission shall meet in the city of Hartford for the 421
purpose of organizing by selecting such officers other than a 422
chairperson as the commission may deem necessary and appropriate. A 423
majority of the members of the commission shall constitute a quorum 424
for the exercise of the powers or authority conferred upon it. 425
(b) [(1)] The commission shall authorize the [Department of 426
Consumer Protection] department to issue licenses to real estate 427
[brokers and real estate salespersons] licensees. 428
[(2)] (c) The commission shall administer the provisions of this 429
chapter as to licensure and issuance, renewal, suspension or revocation 430
of licenses concerning the real estate business. 431
[(c)] (d) The commission shall be provided with the necessary office 432
space in Hartford by the Commissioner of Administrative Services. The 433
place of business of the commission and all files, records and property 434
of the commission shall at all times be and remain at such office, except 435
that inactive files shall be stored at a location designated by the 436
commission. 437
[(d)] (e) The commission shall hold meetings and hearings in 438
Hartford, in space provided by the Commissioner of Administrative 439
Services, or at such places outside of Hartford as shall be determined by 440
the chairman of the commission. The commission shall meet at least 441
once in each three-month period and may meet more often at the call of 442
its chairman. The chairman of the commission shall call a meeting of the 443
commission whenever requested to do so by a majority of the members 444
of the commission. 445
[(e)] (f) The commission shall vote on all matters requiring a decision 446
and votes shall be recorded in the commission's minutes. 447 Raised Bill No. 6769
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Sec. 9. Section 20-312 of the general statutes is repealed and the 448
following is substituted in lieu thereof (Effective April 1, 2024): 449
(a) No person shall act as a real estate [broker or real estate 450
salesperson] licensee without a license issued by the commission or the 451
Commissioner of Consumer Protection, unless exempt under this 452
chapter. The [Commissioner of Consumer Protection] commissioner 453
may enter into any contract for the purpose of administratively 454
processing the renewal of licenses on behalf of the commission. 455
(b) The practice of engaging in the real estate business, or the offer to 456
[practice real estate brokerage] engage in the real estate business in this 457
state by [individual licensed real estate brokers or real estate 458
salespersons as a corporation, limited liability company, partnership or 459
limited liability partnership, a] real estate licensees, as a business entity 460
is permitted, provided: 461
(1) A material part of the business entity's business [of which] 462
includes engaging in the real estate [brokerage, is permitted, provided 463
(1) the] business; 464
(2) The business entity's personnel [of such corporation, limited 465
liability company, partnership or limited liability partnership] who 466
engage in the real estate [brokerage] business [as real estate brokers or 467
real estate salespersons, and the real estate brokers whose ownership, 468
control, membership or partnership interest is credited toward the 469
requirements of subdivision (3) of this subsection, are licensed or 470
exempt from licensure under this chapter, (2) the corporation, limited 471
liability company, partnership or limited liability partnership] are 472
licensed, or exempt from licensure, under this chapter; 473
(3) The business entity has been issued a real estate broker license [by 474
the commission as provided] as set forth in this section; [and] 475
(4) The business entity has paid the license or renewal fee required 476
for a real estate broker's license as set forth in section 20-314, as amended 477
by this act; [,and (3) except for] and 478 Raised Bill No. 6769
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(5) The business entity is a publicly traded corporation or, if the 479
business entity is not a publicly traded corporation: 480
(A) [with respect to a corporation other than a nonstock corporation,] 481
The business entity is a stock corporation and one or more real estate 482
brokers, who are either licensed or exempt from licensure under this 483
chapter, own or control fifty-one per cent or more of the total issued 484
shares of the corporation; [,] 485
(B) [with respect to] The business entity is a nonstock corporation [,] 486
and one or more real estate brokers, who are licensed or exempt from 487
licensure under this chapter, constitute at least fifty-one per cent of the 488
members of the nonstock corporation; [,] 489
(C) [with respect to] The business entity is a limited liability company 490
[,] and one or more real estate brokers, who are licensed or exempt from 491
licensure under this chapter, own or control at least fifty-one per cent of 492
the interest in the limited liability company, as defined in section 34-493
243a; [,] or 494
(D) [with respect to] The business entity is a partnership or limited 495
liability partnership [, one or more real estate brokers'] and the 496
partnership interest, as defined in section 34-301, of one or more real 497
estate brokers, who are licensed or exempt from licensure under this 498
chapter, constitutes at least fifty-one per cent of the total partnership 499
interest. [No such corporation, limited liability company, partnership or 500
limited liability partnership shall be relieved of responsibility for the 501
conduct or acts of its agents, employees or officers by reason of its 502
compliance with this section, nor shall any individual practicing real 503
estate brokerage be relieved of responsibility for real estate services 504
performed by reason of the individual's employment or relationship 505
with such corporation, limited liability company, partnership or limited 506
liability partnership. The Real Estate Commission may refuse to 507
authorize the issuance or renewal of a license if any facts exist that 508
would entitle the commission to suspend or revoke an existing license.] 509
(c) A [corporation, limited liability company, partnership or limited 510 Raised Bill No. 6769
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liability partnership] business entity desiring a real estate broker license 511
shall file with the commission or the [commissioner] Commissioner of 512
Consumer Protection an application on such forms and in such manner 513
as prescribed by the [Department of Consumer Protection] department. 514
Each such [corporation, limited liability company, partnership or 515
limited liability partnership] business entity shall file with the 516
commission, [a designation of at least one individual licensed or 517
qualified to be licensed as a real estate broker in this state who shall be 518
in charge of the real estate brokerage business of such corporation, 519
limited liability company, partnership or limited liability partnership in 520
this state] in a form and manner prescribed by the department, the 521
identity of, and contact information for, at least one designated broker. 522
Such [corporation, limited liability company, partnership or limited 523
liability partnership] business entity shall notify the commission of any 524
change in [such designation] the identity of, or contact information for, 525
such designated broker not later than thirty days after such change 526
becomes effective. 527
(d) The Real Estate Commission may impose a fine of not more than 528
[one] five thousand dollars per violation on any [corporation, limited 529
liability company, partnership or limited liability partnership] person 530
that engages in the real estate business, including, but not limited to, 531
leasing or rental activity, without a license required by this section. Any 532
such imposition of a fine by the commission shall be a proposed final 533
decision and submitted to the [commissioner] Commissioner of 534
Consumer Protection in accordance with the provisions of subsection 535
(b) of section 21a-7. 536
(e) [(1) (A) Except as provided in subdivision (2) of this subsection, 537
each] Each team shall register, on a form and in a manner prescribed by 538
the [commissioner] Commissioner of Consumer Protection, with the 539
[Department of Consumer Protection] department. Each initial 540
registration shall be valid for a period of one year and be subject to 541
renewal for additional one-year periods. Each team shall pay to the 542
department an initial registration fee of five hundred sixty-five dollars 543
when the team files its initial registration, and a registration renewal fee 544 Raised Bill No. 6769
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of three hundred seventy-five dollars when the team files each 545
registration renewal, pursuant to this subparagraph. Each team shall 546
include in each registration form that the team files with the department 547
pursuant to this [subparagraph] subsection: 548
[(i) The] (1) Such team's team name, which shall: 549
[(I)] (A) Include the full name of at least one licensed real estate 550
broker or real estate salesperson who is part of [the] such team or be 551
immediately followed by "at/of [full name of the [sponsoring real estate 552
broker] team's supervising licensee]"; 553
[(II)] (B) Not include the name of any individual who is not a licensed 554
real estate broker or real estate salesperson; and 555
[(III)] (C) With the exception of "team", not include any abbreviation, 556
term or phrase, including, but not limited to, "associates", "company", 557
"corporation", "group", "LLC", "real estate" or "realty", that implies that 558
[the] such team is a business entity; 559
[(ii)] (2) The name of, and contact information for, [the] such team's 560
[sponsoring real estate broker] supervising licensee, who shall serve as 561
[the] such team's primary contact, ensure that [the] such team complies 562
with all applicable laws and regulations concerning team 563
advertisements and ensure that [the] such team timely files accurate 564
registration forms and registration updates with the department 565
pursuant to this [subdivision] subsection; and 566
[(iii)] (3) The name and contact information for each real estate broker 567
or real estate salesperson who is part of [the] such team. 568
[(B)] (f) A team shall send notice to the department disclosing any 569
change to the information contained in the team's registration form. The 570
team shall send such notice to the department, on a form and in a 571
manner prescribed by the [commissioner] Commissioner of Consumer 572
Protection, not later than twelve days after the date of such change. A 573
team may transfer the team's registration from one supervising licensee 574 Raised Bill No. 6769
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to another supervising licensee, without applying for a new team 575
registration, if (1) all members of such team transfer to such other 576
supervising licensee, and (2) both supervising licensees agree to such 577
transfer. 578
[(C)] (g) Each team shall comply with all advertising requirements 579
and standards that apply to real estate brokers, and shall include the 580
name of [the] such team's [sponsoring real estate broker] supervising 581
licensee at a prominent location in all of [the] such team's 582
advertisements. 583
[(2) The commissioner may, in the commissioner's discretion, engage 584
the services of such third parties that the commissioner deems necessary 585
to assist the commissioner in implementing the provisions of 586
subdivision (1) of this subsection, provided no expenditure of state 587
funds shall be made to cover the cost of hiring a consultant to make 588
programmatic changes to the licensing system.] 589
Sec. 10. Section 20-312b of the general statutes is repealed and the 590
following is substituted in lieu thereof (Effective April 1, 2024): 591
A [licensed] real estate [broker or real estate salesperson] licensee 592
shall not be considered an employee under the provisions of section 31-593
275 if substantially all of the remuneration for the services performed by 594
such [broker or salesperson] real estate licensee, whether paid in cash or 595
otherwise, is directly related to sales or other output rather than to the 596
number of hours worked, and such services are performed by the 597
[broker or salesperson] real estate licensee pursuant to a written contract 598
that contains the following provisions: 599
(1) The [broker or salesperson] real estate licensee, for purposes of 600
workers' compensation, is engaged as an independent contractor 601
associated with the person for whom services are performed; 602
(2) The [broker or salesperson] real estate licensee shall be paid a 603
commission based on [his] such real estate licensee's gross sales or 604
leases, if any, without deduction for taxes, which commission shall be 605 Raised Bill No. 6769
LCO No. 4822 21 of 58
directly related to sales, leases or other output; 606
(3) The [broker or salesperson] real estate licensee shall not receive 607
any remuneration related to the number of hours worked and shall not 608
be treated as an employee with respect to such services for purposes of 609
workers' compensation; 610
(4) The [broker or salesperson] real estate licensee shall be permitted 611
to work any hours [he] such real estate licensee chooses; 612
(5) The [broker or salesperson] real estate licensee shall be permitted 613
to work out of [his] such real estate licensee's own home or the office of 614
the person for whom services are performed; 615
(6) The [broker or salesperson] real estate licensee shall be free to 616
engage in outside employment; 617
(7) The person for whom the services are performed may provide 618
office facilities and supplies for the use of the [broker or salesperson] 619
real estate licensee, but [the broker or salesperson] such real estate 620
licensee shall otherwise pay [his] such real estate licensee's own 621
expenses, including, but not limited to, automobile, travel and 622
entertainment expenses; and 623
(8) The contract may be terminated by either party to such contract at 624
any time upon notice given to the other party to such contract. 625
Sec. 11. Section 20-314 of the general statutes is repealed and the 626
following is substituted in lieu thereof (Effective April 1, 2024): 627
(a) Licenses shall be granted under this chapter only to persons who 628
bear a good reputation for honesty, truthfulness and fair dealing and 629
who are competent to transact the business of a leasing agent, real estate 630
broker or real estate salesperson in such manner as to safeguard the 631
interests of the public. 632
(b) Each application for a license or for a renewal thereof shall be 633
made in writing, on such forms and in such manner as is prescribed by 634 Raised Bill No. 6769
LCO No. 4822 22 of 58
the [Department of Consumer Protection and accompanied by such 635
evidence in support of such application as is prescribed by the 636
commission. The commission may require such information with regard 637
to an applicant as the commission deems desirable, with due regard to 638
the paramount interests of the public, as to the honesty, truthfulness, 639
integrity and competency of the applicant and, where the applicant is a 640
corporation, association or partnership, as to the honesty, truthfulness, 641
integrity and competency of the officers of such corporation or the 642
members of such association or partnership] department. 643
(c) In order to determine the competency of any applicant for a real 644
estate [broker's license or a real estate salesperson's] licensee's license, 645
the commission or Commissioner of Consumer Protection shall, on 646
payment of an application fee of one hundred twenty dollars by an 647
applicant for a real estate broker's license or an application fee of eighty 648
dollars by an applicant for a leasing agent's or real estate salesperson's 649
license, subject such applicant to personal written examination as to the 650
applicant's competency to act as a leasing agent, real estate broker or 651
real estate salesperson, as the case may be. [Such] Each examination 652
shall be prepared by the [Department of Consumer Protection] 653
department or by a national testing service designated by the 654
[Commissioner of Consumer Protection] commissioner and shall be 655
administered to applicants by the [Department of Consumer Protection] 656
department or by such testing service at such times and places as the 657
commissioner may deem necessary. The commission or [Commissioner 658
of Consumer Protection] commissioner may waive the uniform portion 659
of the written examination requirement in the case of an applicant who 660
has taken the national testing service examination in another state 661
within two years from the date of application and has received a score 662
deemed satisfactory by the commission or [Commissioner of Consumer 663
Protection] commissioner. The [Commissioner of Consumer Protection] 664
commissioner shall adopt regulations, in accordance with chapter 54, 665
establishing passing scores for examinations. In addition to such 666
application fee, applicants taking the examination administered by a 667
national testing service shall be required to pay directly to such testing 668 Raised Bill No. 6769
LCO No. 4822 23 of 58
service an examination fee covering the cost of such examination. Each 669
payment of such application fee shall entitle the applicant to take such 670
examination within the one-year period from the date of payment. 671
[(d) (1) (A) Each applicant applying for a real estate broker's license 672
on or after July 1, 2016, but before January 1, 2022, shall, before being 673
admitted to such examination, prove to the satisfaction of the 674
commission or the Commissioner of Consumer Protection that the 675
applicant (i) (I) has been actively engaged for at least two years as a 676
licensed real estate salesperson under the supervision of a licensed real 677
estate broker in this state, (II) has successfully completed a course 678
approved by the commission or commissioner in real estate principles 679
and practices of at least sixty classroom hours of study, (III) has 680
successfully completed a course approved by the commission or 681
commissioner in real estate legal compliance consisting of at least fifteen 682
classroom hours of study, (IV) has successfully completed a course 683
approved by the commission or commissioner in real estate brokerage 684
principles and practices consisting of at least fifteen classroom hours, 685
and (V) has successfully completed two elective courses, each consisting 686
of fifteen classroom hours of study, as prescribed by the commission or 687
commissioner, or (ii) has equivalent experience or education as 688
determined by the commission or commissioner.] 689
[(B)] (d) (1) Each applicant [applying for a real estate broker's license 690
on or after January 1, 2022,] shall, before being admitted to such 691
examination, prove to the satisfaction of the commission or the 692
Commissioner of Consumer Protection that the applicant [(i) (I)] (A) (i) 693
has been actively engaged as a licensed real estate salesperson under the 694
supervision of a [licensed real estate broker in this state] supervising 695
licensee, who is licensed in this state, for a minimum period of three 696
years immediately preceding the date the applicant filed such 697
applicant's application, during which period such salesperson engaged 698
in the real estate business for at least one thousand five hundred hours 699
[during the three years immediately preceding the date on which such 700
applicant filed such applicant's application,] and such supervising 701
[licensed real estate broker] licensee, or such supervising [licensed real 702 Raised Bill No. 6769
LCO No. 4822 24 of 58
estate broker's] licensee's authorized representative, has certified the 703
accuracy of a record of such applicant's active engagement on a form 704
provided by such applicant to such supervising [licensed real estate 705
broker] licensee or authorized representative, [(II)] (ii) has successfully 706
completed a course approved by the commission or commissioner in 707
real estate principles and practices of at least sixty classroom hours of 708
study, [(III)] (iii) has successfully completed a course approved by the 709
commission or commissioner in real estate legal compliance consisting 710
of at least fifteen classroom hours of study, [(IV)] (iv) has successfully 711
completed a course approved by the commission or commissioner in 712
real estate brokerage principles and practices consisting of at least 713
fifteen classroom hours, [(V)] (v) has successfully completed two 714
elective courses, each consisting of fifteen classroom hours of study, as 715
prescribed by the commission or commissioner, and [(VI)] (vi) has 716
represented a seller, buyer, lessor or lessee in at least four real estate 717
transactions that closed during the three years immediately preceding 718
the date on which such applicant filed such applicant's application, or 719
[(ii)] (B) has equivalent experience or education as determined by the 720
commission or commissioner. Each supervising [licensed real estate 721
broker] licensee, or authorized representative of such supervising 722
[licensed real estate broker] licensee, shall certify the accuracy or 723
inaccuracy of a record provided by an applicant to such supervising 724
[licensed real estate broker] licensee or authorized representative under 725
subparagraph [(B)(i)(I)] (A)(i) of this subdivision not later than ninety 726
days after such applicant provides such record to such supervising 727
[licensed real estate broker] licensee or authorized representative. 728
(2) The commission or the [Commissioner of Consumer Protection] 729
commissioner shall waive the elective courses under subparagraph 730
[(A)(i)(V) or (B)(i)(V)] (A)(v) of subdivision (1) of this subsection if the 731
applicant has successfully completed at least twenty real estate 732
transactions within five years immediately preceding the date of 733
application. [As used in this subdivision, "real estate transaction" means 734
any transaction in which real property is legally transferred to another 735
party or in which a lease agreement is executed between a landlord and 736 Raised Bill No. 6769
LCO No. 4822 25 of 58
a tenant.] 737
(3) Each applicant for a real estate salesperson's license shall, before 738
being admitted to such examination, prove to the satisfaction of the 739
commission or the [Commissioner of Consumer Protection ] 740
commissioner that the applicant (A) has successfully completed a course 741
approved by the commission or commissioner in real estate principles 742
and practices consisting of at least sixty classroom hours of study, or (B) 743
has equivalent experience or education as determined by the 744
commission or commissioner. 745
(4) Each applicant for a leasing agent license shall, before being 746
admitted to such examination, prove to the satisfaction of the 747
commission or the commissioner that the applicant (A) has successfully 748
completed a course or courses approved by the commission or 749
commissioner in real estate leasing, including, but not limited to, 750
training on fair housing law, landlord tenant law and security deposit 751
management, consisting of at least twenty classroom hours of study, or 752
(B) has equivalent experience or education as determined by the 753
commission or commissioner. 754
(e) The provisions of subsections (c) and (d) of this section shall not 755
apply to any renewal of a real estate broker's license, or a real estate 756
salesperson's license issued prior to October 1, 1973. 757
(f) All licenses issued under the provisions of this chapter shall expire 758
[annually] biennially. At the time of application for a real estate broker's 759
license, there shall be paid to the [commission] department, for each 760
individual applicant and for each proposed active member or officer of 761
a [firm, partnership, association or corporation] business entity, the sum 762
of [five hundred sixty-five] one thousand one hundred thirty dollars, 763
and for the [annual] biennial renewal thereof, the sum of [three hundred 764
seventy-five] seven hundred fifty dollars, except that for licenses 765
expiring on March 31, 2022, a prorated renewal fee shall be charged to 766
reflect the fact that the March 2022, renewal shall expire on November 767
30, 2023. At the time of application for a real estate salesperson's or 768 Raised Bill No. 6769
LCO No. 4822 26 of 58
leasing agent's license, there shall be paid to the [commission two 769
hundred eighty-five] department five hundred seventy dollars and for 770
the [annual] biennial renewal thereof the sum of [two hundred eighty-771
five] five hundred seventy dollars. [Three] Six dollars of each such 772
[annual] biennial renewal fee shall be payable to the Real Estate 773
Guaranty Fund established pursuant to section 20-324a, as amended by 774
this act. A real estate broker's license issued to any [partnership, 775
association or corporation] business entity shall entitle the [individual 776
designated in the application, as provided in section 20-312] designated 777
broker, upon compliance with the terms of this chapter, but without the 778
payment of any further fee, to perform all of the acts of a real estate 779
broker under this chapter on behalf of such [partnership, association or 780
corporation] business entity. Any license which expires and is not 781
renewed [pursuant to this subsection] on or before the ninetieth day 782
following the expiration date of such license may be reinstated by the 783
commission [, if, not later than two years after the date of expiration,] or 784
department, in the commission's or department's discretion, provided 785
such license has expired for less than three years and the former licensee 786
[pays to the commission for] (1) attests that such former licensee did not 787
work in this state in the occupation or profession in which such former 788
licensee was licensed while such former licensee's license was lapsed, 789
(2) pays the renewal fee due for such license for the year in which such 790
license is reinstated, and (3) completes any continuing education 791
required for such license for the year preceding such reinstatement. If 792
an applicant for reinstatement worked in this state in the occupation or 793
profession in which such applicant was formerly licensed while such 794
license was lapsed, the applicant shall pay all license and late fees due 795
and owing for the lapse period and demonstrate that such applicant has 796
completed all continuing education required for such license for the 797
year preceding such reinstatement. Such late fees shall be assessed for 798
each real estate broker's license [the sum] in the amount of three 799
hundred seventy-five dollars and for each real estate salesperson's or 800
leasing agent's license [the sum] in the amount of two hundred eighty-801
five dollars for each year or fraction thereof from the date of expiration 802
of the previous license to the date of payment for reinstatement. [, except 803 Raised Bill No. 6769
LCO No. 4822 27 of 58
that any] If a license has lapsed for at least three years, the former 804
licensee is ineligible for reinstatement under this subsection and may 805
apply for a new license. Notwithstanding any contrary provision of this 806
subsection, a former licensee whose license expired after such former 807
licensee entered military service shall be reinstated without payment of 808
any fee if an application for reinstatement is filed with the commission 809
[within two years after the date of expiration] or department before the 810
third anniversary of such expiration date, and the former licensee 811
provides evidence that is sufficient to demonstrate to the commission or 812
department that such former licensee completed at least six hours of 813
continuing education for such license, including, but not limited to, the 814
mandatory continuing education required for such license, during the 815
calendar year preceding the date on which such application for 816
reinstatement is filed. Any such reinstated broker's license shall expire 817
on the next succeeding November thirtieth. [, except that any broker's 818
license that is reinstated before March 31, 2022, shall expire on March 819
31, 2022.] Any such reinstated real estate salesperson's license shall 820
expire on the next succeeding May thirty-first. 821
(g) [Any person whose application has been filed as provided in this 822
section and who is refused a license shall be given notice and afforded 823
an opportunity for hearing as provided in the regulations adopted by 824
the Commissioner of Consumer Protection.] Following a denial of a 825
license or license renewal application filed under this section, the 826
department shall send a notice to the applicant who filed such 827
application disclosing such denial and that such applicant may request 828
a hearing by submitting to the Commissioner of Consumer Protection a 829
written hearing request not later than thirty days after the date such 830
denial notice was sent to such applicant. If the applicant requests a 831
hearing during such thirty-day period, the department shall send a 832
notice to such applicant disclosing the grounds for such denial and 833
conduct a hearing concerning such denial in accordance with the 834
provisions of chapter 54. If the commissioner's denial is sustained after 835
such hearing, the applicant may file a new application for such license 836
or license renewal not sooner than one year after the date on which such 837 Raised Bill No. 6769
LCO No. 4822 28 of 58
denial was sustained. 838
Sec. 12. Section 20-314a of the general statutes is repealed and the 839
following is substituted in lieu thereof (Effective April 1, 2024): 840
(a) The Commissioner of Consumer Protection, with the advice and 841
assistance of the commission, may adopt regulations, in accordance 842
with chapter 54, relating to the approval of schools offering prelicensing 843
and continuing education courses, [in real estate principles and practice 844
and related subjects,] the content of such courses and the advertising to 845
the public of the services [of] offered by such schools. Such regulations 846
shall not require [(1)] approval of instructors at such schools. [, or (2) a 847
course to be conducted in a classroom location approved for such use 848
by a local fire marshal provided the course is conducted in a hotel, 849
restaurant or other public building or a place of public assembly, as 850
defined in section 19-13-B105 of the regulations of Connecticut state 851
agencies.] No school may be disapproved solely because the school's 852
courses are offered or taught by electronic means, and no course may be 853
disapproved solely because the course is offered or taught by electronic 854
means if such course satisfies the requirements established in section 4 855
of this act. 856
(b) The commission or department may exempt any applicant for a 857
real estate broker's license from the requirements concerning experience 858
under the provisions of subsection (d) of section 20-314, as amended by 859
this act, if the commission or department determines that such applicant 860
is unable to meet such requirements solely because such applicant has 861
been subjected to discrimination based on race, creed or color, which 862
discrimination interfered with such applicant's ability to meet such 863
requirements. 864
Sec. 13. Subsections (b) and (c) of section 20-316 of the general statutes 865
are repealed and the following is substituted in lieu thereof (Effective 866
April 1, 2024): 867
(b) No license under this chapter shall be issued by the [Department 868
of Consumer Protection] department to any applicant (1) whose 869 Raised Bill No. 6769
LCO No. 4822 29 of 58
application for a license as a real estate [broker or real estate salesperson] 870
licensee has, within one year prior to the date of [his] such applicant's 871
application under this chapter, been rejected in this state, in any other 872
state or in the District of Columbia, or (2) whose license as a real estate 873
[broker or real estate salesperson] licensee has, within one year prior to 874
the date of [his] such applicant's application under this chapter, been 875
revoked in this state, in any other state or in the District of Columbia. 876
(c) No real estate license [as a real estate broker or real estate 877
salesperson] shall be issued under this chapter to any person who [has 878
not attained the age of] is younger than eighteen years of age. 879
Sec. 14. Section 20-317 of the general statutes is repealed and the 880
following is substituted in lieu thereof (Effective April 1, 2024): 881
(a) A person licensed in another state [as a real estate broker or 882
salesperson] to engage in the real estate business may become a real 883
estate [broker or real estate salesperson] licensee in this state by 884
conforming to all of the provisions of this chapter. The commission or 885
Commissioner of Consumer Protection shall recognize a current, valid 886
license issued to a currently practicing, competent real estate [broker or 887
real estate salesperson] professional engaging in the real estate business 888
in, and recognized by, another state as satisfactorily qualifying [the 889
broker or salesperson] such real estate professional for a license as a real 890
estate [broker or real estate salesperson] licensee under this chapter, 891
provided (1) the laws of the state in which [the broker or salesperson] 892
such real estate professional is licensed require that applicants for 893
licenses as real estate [brokers and real estate salespersons] licensees 894
establish their competency by written examinations, [and allow licenses 895
to be issued to residents of the state of Connecticut, licensed under this 896
chapter, without examination,] (2) the licensure requirements of such 897
state are substantially similar to or higher than those of this state, and 898
(3) [the broker or salesperson] such real estate professional has no 899
disciplinary proceeding or unresolved complaint pending against [the 900
broker or salesperson] such real estate professional. If [the] an applicant 901
real estate professional is licensed in a state that does not have such 902 Raised Bill No. 6769
LCO No. 4822 30 of 58
requirements, such applicant real estate professional shall be required 903
to pass the Connecticut portion of the real estate examination. 904
(b) [Every applicant licensed in another state shall file an irrevocable 905
consent that suits and actions may be commenced against such 906
applicant in the proper court in any judicial district of the state in which 907
a cause of action may arise or in which the plaintiff may reside, by the 908
service of any process or pleading, authorized by the laws of this state, 909
on the chairperson of the commission, such consent stipulating and 910
agreeing that such service of such process or pleading shall be taken and 911
held in all courts to be as valid and binding as if service had been made 912
upon such applicant in the state of Connecticut. If any process or 913
pleadings under this chapter are served upon the chairperson, it shall 914
be by duplicate copies, one of which shall be filed in the office of the 915
commission, and the other immediately forwarded by registered or 916
certified mail, to the applicant against whom such process or pleadings 917
are directed, at the last-known address of such applicant as shown by 918
the records of the department. No default in any such proceedings or 919
action shall be taken unless it appears by affidavit of the chairperson of 920
the commission that a copy of the process or pleading was mailed to the 921
defendant as required by this subsection, and no judgment by default 922
shall be taken in any such action or proceeding within twenty days after 923
the date of mailing of such process or pleading to the out-of-state 924
defendant.] A real estate professional who satisfies the requirements 925
established in subsection (a) of this section may apply for licensure in 926
this state as set forth in section 21a-11b. 927
Sec. 15. Section 20-319 of the general statutes is repealed and the 928
following is substituted in lieu thereof (Effective April 1, 2024): 929
(a) The commission shall authorize the [Department of Consumer 930
Protection] department to issue [an annual] a two-year renewal license 931
to any applicant who possesses the qualifications specified in, and 932
[otherwise] has otherwise complied with the provisions of, this chapter 933
and any regulation adopted [under] pursuant to this chapter. The 934
commission shall authorize [said] the department to issue [an annual] a 935 Raised Bill No. 6769
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two-year renewal of a real estate broker's license to any business entity 936
licensed pursuant to subsection (b) of section 20-312, as amended by this 937
act, provided such business entity: (1) Was so licensed as of September 938
30, 2005, notwithstanding the fact such business entity does not meet the 939
requirements for publicly traded corporations required by subdivision 940
[(3)] (5) of subsection (b) of section 20-312, as amended by this act, or (2) 941
changes [its] such business entity's designated [real estate] broker 942
pursuant to subsection (c) of section 20-312, as amended by this act. 943
(b) There [is] are hereby established [an annual] two-year renewal 944
[license] licenses to be issued by the [Department of Consumer 945
Protection. Persons licensed in accordance with the provisions of this 946
chapter] department to real estate licensees. Each real estate licensee 947
who files an application with the department seeking a two-year 948
renewal license shall fulfill a continuing education requirement. 949
[Applicants] Each applicant for [an annual] a two-year renewal license 950
[for real estate brokers or real estate salespersons] shall, in addition to 951
the other requirements imposed by the provisions of this chapter, [in 952
any even-numbered year,] submit to the commission or department 953
proof [of] that such applicant is in compliance with the continuing 954
education requirements [of] established in this [subsection to the 955
commission. Each] section. Each real estate licensee shall pay [an annual 956
four-dollar] a biennial eight-dollar continuing education processing fee 957
to cover the administrative costs associated with [the review] reviewing 958
and auditing [of] continuing education submissions. The continuing 959
education requirement for real estate licensees, other than leasing 960
agents, may be satisfied by successful completion of any of the following 961
during the two-year period preceding [such] a renewal: (1) A course or 962
courses, approved by the commission or department, of continuing 963
education in current real estate practices and licensing laws, including, 964
but not limited to, practices and laws concerning common interest 965
communities, consisting of not less than twelve hours of classroom 966
study; or (2) a written examination prepared and administered by either 967
the [Department of Consumer Protection] department, or by a national 968
testing service approved by the department, which demonstrates a 969 Raised Bill No. 6769
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knowledge of current real estate practices and licensing laws; or (3) 970
equivalent continuing educational experience or study as determined 971
by regulations adopted pursuant to subsection (d) of this section. An 972
applicant for examination under subdivision (2) of this subsection shall 973
pay the required examination fee to the national testing service, if 974
administered by such testing service, or to the [Department of 975
Consumer Protection] department, if administered by the department. 976
In order to receive a two-year renewal license under this section, a 977
leasing agent shall complete at least four hours of continuing education 978
during the two-year period beginning twenty-seven months before the 979
renewal date and ending three months before the renewal date, and at 980
least one hour of such continuing education shall address fair housing 981
law. 982
(c) If the commission or department refuses to grant [an annual] a 983
two-year renewal license, the licensee or applicant, upon written notice 984
received as provided for in this chapter, may have recourse to any of the 985
remedies provided by sections 20-314, as amended by this act, and 20-986
322. 987
(d) The Commissioner of Consumer Protection, in consultation with 988
the commission, shall adopt regulations, in accordance with chapter 54, 989
[concerning the approval of schools, institutions or organizations 990
offering courses in current real estate practices and licensing laws, 991
including, but not limited to, practices and laws concerning common 992
interest communities, and the content of such courses] to establish 993
continuing education requirements. Such regulations shall include, but 994
not be limited to: (1) Specifications for meeting equivalent continuing 995
educational experience or study; and (2) exceptions from continuous 996
education requirements for reasons of health or instances of individual 997
hardship. [No school, institution or organization that offers a course in 998
current real estate practices and licensing laws may be disapproved 999
solely because its courses are offered or taught by electronic means, and 1000
no course may be disapproved solely because it is offered or taught by 1001
electronic means.] 1002 Raised Bill No. 6769
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(e) If a real estate licensee fails to satisfy the continuing education 1003
requirements established pursuant to this section for any two-year 1004
license period, the real estate licensee shall pay to the department a fee 1005
in the amount of: 1006
(1) Three hundred fifteen dollars if such licensee reports to the 1007
department, in a form and manner prescribed by the department, that 1008
such real estate licensee failed to satisfy such continuing education 1009
requirements during such license period but completed such continuing 1010
education requirements not later than two months after such license 1011
period expired; or 1012
(2) Six hundred twenty-five dollars if such licensee reports to the 1013
department, in a form and manner prescribed by the department, that 1014
such real estate licensee failed to satisfy such continuing education 1015
requirements during such license period but completed such continuing 1016
education requirements more than two months after such license period 1017
expired but not later than four months after such license period expired. 1018
Sec. 16. Section 20-319a of the general statutes is repealed and the 1019
following is substituted in lieu thereof (Effective April 1, 2024): 1020
(a) [Any] Each licensed real estate salesperson, associate broker or 1021
leasing agent who transfers [his employment from one broker to another 1022
or his] such real estate salesperson's, associate broker's or leasing agent's 1023
affiliation with a broker [as an independent contractor] or property 1024
owner shall register such transfer with, and pay a registration fee of 1025
twenty-five dollars to, the [commission] department. 1026
(b) A fee of twenty-five dollars shall be paid to the [commission] 1027
department for the issuance of a license certification. 1028
(c) A fee of twenty-five dollars shall be paid to the [Department of 1029
Consumer Protection] department for any change made to, or transfer 1030
of, a team's registration after the team files an initial registration with 1031
the department pursuant to [subdivision (1) of] subsection (e) of section 1032
20-312, as amended by this act. 1033 Raised Bill No. 6769
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(d) If a team transfers to a new supervising licensee, the new 1034
supervising licensee shall electronically update the team's registration 1035
information with the department not later than fourteen calendar days 1036
after such transfer. 1037
Sec. 17. Section 20-320 of the general statutes is repealed and the 1038
following is substituted in lieu thereof (Effective April 1, 2024): 1039
(a) The [Department of Consumer Protection] department may [, 1040
upon the request of the commission or upon the verified complaint in 1041
writing of any person, if such complaint, or such complaint together 1042
with evidence, documentary or otherwise, presented in connection with 1043
such complaint, shall make out a prima facie case,] investigate the 1044
actions of any [real estate broker or real estate salesperson or any person 1045
who assumes to act in any of such capacities] person who engages in the 1046
real estate business or offers real estate courses within this state. The 1047
commission or department may temporarily suspend or permanently 1048
revoke any license or registration issued under the provisions of this 1049
chapter and, in addition to or in lieu of such suspension or revocation, 1050
may, in [its] the commission's or department's discretion, impose a fine 1051
of not more than [two] five thousand dollars per violation at any time 1052
when, after proceedings as provided in section 20-321, the commission 1053
or department finds that the real estate licensee has by false or 1054
fraudulent misrepresentation obtained a license or registration or that 1055
the real estate licensee [is guilty of any of the following] has: (1) 1056
[Making] Made any material misrepresentation; (2) [making] made any 1057
false promise of a character likely to influence, persuade or induce; (3) 1058
[acting] acted as an agent for more than one party in a transaction 1059
without the knowledge of all parties for whom the real estate licensee 1060
[acts] acted; (4) [representing or attempting] represented, or attempted 1061
to represent, a real estate broker, other than the real estate licensee's 1062
[employer or the broker with whom the licensee is affiliated] affiliated 1063
or supervising licensee, without the express knowledge and consent of 1064
[the] such real estate licensee's [employer or] affiliated [broker] or 1065
supervising licensee; (5) [failing] failed, within a reasonable time, to 1066
account for or remit any moneys [coming] which came into the real 1067 Raised Bill No. 6769
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estate licensee's possession and which [belong] belongs to others; (6) 1068
[entering] entered into an exclusive listing contract or buyer agency 1069
contract which contains a fixed termination date if such contract also 1070
provides for an automatic continuation of the period of such contract 1071
beyond such date; (7) [failing] failed to deliver immediately a copy of 1072
any instrument to any party or parties executing [the] such instrument, 1073
where such instrument has been prepared by the real estate licensee or 1074
under [the] such real estate licensee's supervision and where such 1075
instrument relates to the employment of [the] such real estate licensee 1076
or to any matters pertaining to the consummation of a lease, or the 1077
purchase, sale or exchange of real property or any other type of real 1078
estate transaction in which [the] such real estate licensee may participate 1079
as a [broker or a salesperson] real estate licensee; (8) [conviction] been 1080
convicted, in a court of competent jurisdiction, of forgery, 1081
embezzlement, obtaining money under false pretenses, larceny, 1082
extortion, conspiracy to defraud [,or other like] or a similar offense, [or 1083
offenses,] provided suspension or revocation under this subdivision 1084
shall be subject to the provisions of section 46a-80; (9) [collecting] 1085
collected compensation or a commission in advance of services to be 1086
performed and [failing] failed, upon demand of the person [paying the] 1087
who paid such compensation or [the] commission, to render an 1088
accounting of the use of such [money] compensation or commission; 1089
(10) [commingling] commingled funds of others with the real estate 1090
licensee's own funds, or [failing] failed to keep funds of others in an 1091
escrow or trustee account; (11) engaged in any act or conduct which 1092
constitutes dishonest, fraudulent or improper dealings; (12) [failing] 1093
failed to provide the disclosures required by section 20-325c, [;] as 1094
amended by this act; or (13) [a violation of] violated any provision of 1095
this chapter or any regulation adopted under this chapter. [Any such 1096
suspension or revocation of a license or imposition of a fine by the 1097
commission shall be a proposed final decision and submitted to the 1098
commissioner in accordance with the provisions of subsection (b) of 1099
section 21a-7.] Any fine collected pursuant to this section shall be 1100
deposited in the Real Estate Guaranty Fund established pursuant to 1101
section 20-324a, as amended by this act. 1102 Raised Bill No. 6769
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(b) No person shall be relieved of responsibility for the conduct or 1103
actions of such person's agents, employees or officers by reason of such 1104
person's compliance with the provisions of this chapter. No person who 1105
engages in the real estate business shall be relieved of responsibility for 1106
such person's own conduct or actions by reason of such person's 1107
employment by, or association with, any real estate licensee or 1108
development owner. 1109
Sec. 18. Section 20-320a of the general statutes is repealed and the 1110
following is substituted in lieu thereof (Effective April 1, 2024): 1111
[(a)] No real estate [broker or real estate salesperson] licensee, no 1112
person affiliated with [such broker or salesperson] a real estate licensee, 1113
and no person engaging in the real estate business may receive a fee, 1114
commission or other form of referral fee for the referral of any buyer of 1115
real property to (1) an attorney-at-law admitted to practice in this state 1116
or any person affiliated with such attorney or (2) any mortgage broker, 1117
any lender, as defined in subdivision (5) of section 49-31d, or any person 1118
affiliated with such mortgage broker or lender. 1119
[(b) The Department of Consumer Protection may, upon the request 1120
of the commission or upon the verified complaint in writing of any 1121
person, if such complaint, or such complaint together with evidence, 1122
documentary or otherwise, presented in connection with such 1123
complaint, shall make out a prima facie case, investigate the actions of 1124
any real estate broker or real estate salesperson or any person who 1125
assumes to act in any of such capacities within this state. The 1126
commission may temporarily suspend or permanently revoke any 1127
license issued under the provisions of this chapter, and, in addition to 1128
or in lieu of such suspension or revocation, may, in its discretion, impose 1129
a fine of not more than one thousand dollars for the first offense at any 1130
time when, after proceedings as provided in section 20-321, the 1131
commission finds that the licensee is guilty of violating any of the 1132
provisions of subsection (a) of this section. Any such suspension or 1133
revocation of a license or imposition of a fine by the commission shall 1134
be a proposed final decision and submitted to the commissioner in 1135 Raised Bill No. 6769
LCO No. 4822 37 of 58
accordance with the provisions of subsection (b) of section 21a-7.] 1136
Sec. 19. Subsection (a) of section 20-320b of the general statutes is 1137
repealed and the following is substituted in lieu thereof (Effective April 1138
1, 2024): 1139
(a) A real estate [broker or real estate salesperson licensed under this 1140
chapter] licensee shall not influence residential real estate appraisals. 1141
[For the purposes of this section, "influence residential real estate 1142
appraisals" includes, but is not limited to, refusal or intentional failure 1143
to refer a homebuyer, or encouraging other real estate brokers or real 1144
estate salespersons not to refer a homebuyer, to a mortgage broker, as 1145
defined in section 36a-760, or a lender, as defined in section 36a-760, 1146
based solely on the fact that the mortgage broker or lender uses an 1147
appraiser who has provided an appraisal reflecting a fair market value 1148
estimate that was less than the sale contract price.] 1149
Sec. 20. Section 20-323 of the general statutes is repealed and the 1150
following is substituted in lieu thereof (Effective April 1, 2024): 1151
Any real estate licensee under this chapter who is convicted of a 1152
violation of any of the offenses enumerated in subdivision (8) of 1153
subsection (a) of section 20-320, as amended by this act, may incur a 1154
forfeiture of [his or her] such real estate licensee's license and all moneys 1155
that may have been paid for such license. The clerk of any court in which 1156
such conviction has been rendered shall forward to the commission 1157
without charge a certified copy of such conviction. The [commissioner] 1158
Commissioner of Consumer Protection may revoke such licensee's 1159
license after proceedings as provided in section 20-321. Such notice shall 1160
be conclusive of the revocation of such license. Application for 1161
reinstatement of such license shall be subject to the provisions of section 1162
46a-80. 1163
Sec. 21. Section 20-324a of the general statutes is repealed and the 1164
following is substituted in lieu thereof (Effective April 1, 2024): 1165
The commission shall establish and maintain a Real Estate Guaranty 1166 Raised Bill No. 6769
LCO No. 4822 38 of 58
Fund from which, subject to the provisions of this section and sections 1167
[20-324a] 20-324b to [20-324j] 20-324i, inclusive, as amended by this act, 1168
any person aggrieved by any action of a real estate [broker or real estate 1169
salesperson] licensee, duly licensed in this state under section 20-312, as 1170
amended by this act, by reason of the embezzlement of money or 1171
property, or money or property unlawfully obtained from any person 1172
by false pretenses, artifice or forgery or by reason of any fraud, 1173
misrepresentation or deceit by or on the part of any such real estate 1174
[broker or real estate salesperson] licensee or the unlicensed employee 1175
of any such real estate [broker] licensee, may recover, upon approval by 1176
the commission of an application brought pursuant to the provisions of 1177
section 20-324e, as amended by this act, compensation in an amount not 1178
exceeding in the aggregate the sum of twenty-five thousand dollars in 1179
connection with any one real estate transaction or claim, regardless of 1180
the number of persons aggrieved or parcels of real estate involved in 1181
such real estate transaction or claim. 1182
Sec. 22. Section 20-324b of the general statutes is repealed and the 1183
following is substituted in lieu thereof (Effective April 1, 2024): 1184
[Any person who receives a real estate broker's or real estate 1185
salesperson's license under this chapter for the first time shall] Each real 1186
estate licensee shall, upon application for a license under this chapter, 1187
pay an additional one-time fee of twenty dollars in addition to all other 1188
fees payable, which additional fee shall be credited to the Real Estate 1189
Guaranty Fund. The Real Estate Guaranty Fund shall also be credited as 1190
provided in sections 20-314, as amended by this act, and 20-320, as 1191
amended by this act. 1192
Sec. 23. Section 20-324d of the general statutes is repealed and the 1193
following is substituted in lieu thereof (Effective April 1, 2024): 1194
No application to recover compensation under sections 20-324a to 1195
[20-324j] 20-324i, inclusive, as amended by this act, which might 1196
subsequently result in an order for collection from the Real Estate 1197
Guaranty Fund shall be brought later than two years from the final 1198 Raised Bill No. 6769
LCO No. 4822 39 of 58
determination of, or expiration of time for appeal in connection with, 1199
any judgment. 1200
Sec. 24. Subsections (a) to (f), inclusive, of section 20-324e of the 1201
general statutes are repealed and the following is substituted in lieu 1202
thereof (Effective April 1, 2024): 1203
(a) When any aggrieved person commences any action for a 1204
judgment which may result in collection from the Real Estate Guaranty 1205
Fund, the aggrieved person shall notify the commission or department 1206
in writing to this effect at the time of the commencement of such action. 1207
Such written notice shall toll the time for making application to the 1208
commission pursuant to section 20-324d, as amended by this act. The 1209
commission or department shall have the right to enter an appearance, 1210
intervene in or defend any such action and may waive the required 1211
written notice for good cause shown. 1212
(b) When any aggrieved person recovers a valid judgment in the 1213
Superior Court against any real estate [broker or real estate salesperson] 1214
licensee or the unlicensed employee of any such real estate [broker] 1215
licensee for loss or damages sustained by reason of the embezzlement 1216
of money or property, or money or property unlawfully obtained from 1217
any person by false pretenses, artifice or forgery or by reason of any 1218
fraud, misrepresentation or deceit by or on the part of such real estate 1219
[broker or salesperson] licensee or the unlicensed employee of any such 1220
real estate broker, such aggrieved person may upon the final 1221
determination of, or expiration of time for appeal in connection with, 1222
any judgment, apply to the commission for an order directing payment 1223
out of the Real Estate Guaranty Fund of the amount unpaid upon the 1224
judgment, subject to the limitations stated in section 20-324a, as 1225
amended by this act, and the limitations specified in this section. 1226
(c) The commission shall proceed upon such application in a 1227
summary manner, and, upon the hearing thereof, the aggrieved person 1228
shall be required to show that: (1) [He] Such aggrieved person is not a 1229
spouse of the debtor or the personal representative of such spouse; (2) 1230 Raised Bill No. 6769
LCO No. 4822 40 of 58
[he] such aggrieved person has complied with all the requirements of 1231
this section; (3) [he] such aggrieved person has obtained a judgment as 1232
provided in subsection (b) of this section, stating the amount thereof and 1233
the amount owing thereon at the date of the application; (4) [he] such 1234
aggrieved person has caused to be issued a writ of execution upon the 1235
judgment and the officer executing the same has made a return showing 1236
that no personal or real property of the judgment debtor liable to be 1237
levied upon in satisfaction of the judgment could be found, or that the 1238
amount realized on the sale of them or of such of them as were found, 1239
under the execution, was insufficient to satisfy the judgment, stating the 1240
amount so realized and the balance remaining due on the judgment 1241
after application thereon of the amount realized; (5) [he] such aggrieved 1242
person has made all reasonable searches and inquiries to ascertain 1243
whether the judgment debtor possesses real or personal property or 1244
other assets, liable to be sold or applied in satisfaction of the judgment; 1245
and (6) that by such search [he] such aggrieved person has discovered 1246
no personal or real property or other assets liable to be sold or applied, 1247
or that [he] such aggrieved person has discovered certain of them, 1248
describing them, owned by the judgment debtor and liable to be so 1249
applied, and that [he] such aggrieved person has taken all necessary 1250
action and proceedings for the realization thereof, and that the amount 1251
thereby realized was insufficient to satisfy the judgment, stating the 1252
amount so realized and the balance remaining due on the judgment 1253
after application of the amount realized. 1254
(d) Whenever the aggrieved person satisfies the commission that it is 1255
not practicable to comply with one or more of the requirements 1256
enumerated in subdivisions (4), (5) and (6) of subsection (c) of this 1257
section and that [the] such aggrieved person has taken all reasonable 1258
steps to collect the amount of the judgment or the unsatisfied part 1259
thereof and has been unable to collect the same, the commission may in 1260
its discretion waive such requirements. 1261
(e) The commission shall order payment from the Real Estate 1262
Guaranty Fund of any sum it shall find to be payable upon the claim, 1263
pursuant to the provisions of and in accordance with the limitations 1264 Raised Bill No. 6769
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contained in this section and section 20-324a, as amended by this act, if 1265
the commission is satisfied, upon the hearing, of the truth of all matters 1266
required to be shown by the aggrieved person by subsection (c) of this 1267
section and that [the] such aggrieved person has fully pursued and 1268
exhausted all remedies available to [him] such aggrieved person for 1269
recovering the amount awarded by the judgment of the court. 1270
(f) If the commission pays from the Real Estate Guaranty Fund any 1271
amount in settlement of a claim or toward satisfaction of a judgment 1272
against a [licensed real estate broker or real estate salesperson] real 1273
estate licensee pursuant to an order under subsection (e) of this section, 1274
such [broker or salesperson] real estate licensee shall not be eligible to 1275
receive a new license until [he] such real estate licensee has repaid in 1276
full, plus interest at a rate to be determined by the commission and 1277
which shall reflect current market rates, the amount paid from the fund 1278
on [his] such real estate licensee's account. A discharge in bankruptcy 1279
shall not relieve a person from the penalties and disabilities provided in 1280
this subsection. 1281
Sec. 25. Section 20-324i of the general statutes is repealed and the 1282
following is substituted in lieu thereof (Effective April 1, 2024): 1283
The Commissioner of Consumer Protection, with the advice and 1284
assistance of the commission, may adopt regulations, in accordance 1285
with chapter 54, to carry out the provisions of this section and sections 1286
20-324a to [20-324j] 20-324h, inclusive, as amended by this act. 1287
Sec. 26. Section 20-325 of the general statutes is repealed and the 1288
following is substituted in lieu thereof (Effective April 1, 2024): 1289
Any person who engages in the real estate business [of a real estate 1290
broker or real estate salesperson] without obtaining a license as 1291
provided in this chapter shall be fined not more than one thousand 1292
dollars per violation or imprisoned not more than six months or both, 1293
and shall be ineligible to obtain a license for one year from the date of 1294
conviction of such offense, except that the commission or Commissioner 1295
of Consumer Protection may grant a license to such person within such 1296 Raised Bill No. 6769
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one-year period upon application and after a hearing on such 1297
application. 1298
Sec. 27. Subsection (a) of section 20-325a of the general statutes is 1299
repealed and the following is substituted in lieu thereof (Effective April 1300
1, 2024): 1301
(a) [No] Except for an out-of-state real estate licensee who is an 1302
individual and seeking to recover agreed compensation authorized 1303
under subsection (e) of section 20-325l, as amended by this act, no 1304
person who is not licensed under the provisions of this chapter, and who 1305
was not so licensed at the time the person performed the acts or 1306
rendered the services for which recovery is sought, shall commence or 1307
bring any action in any court of this state, after October 1, 1971, to 1308
recover any commission, compensation or other payment with respect 1309
to any act done or service rendered by the person, the doing or 1310
rendering of which is prohibited under the provisions of this chapter 1311
except by persons duly licensed under this chapter. 1312
Sec. 28. Section 20-325c of the general statutes is repealed and the 1313
following is substituted in lieu thereof (Effective April 1, 2024): 1314
[(a) As used in this section "residential real property" means one to 1315
four-family residential real estate located in this state.] 1316
[(b)] (a) Notwithstanding any provision of the general statutes to the 1317
contrary, no real estate [broker or real estate salesperson] licensee, other 1318
than a leasing agent, and no person affiliated with such [broker or 1319
salesperson] real estate licensee, who receives a fee, commission or other 1320
valuable consideration for the sale of residential real property, may 1321
receive a fee, commission or other valuable consideration for 1322
negotiating, soliciting, arranging, placing or finding a first mortgage 1323
loan for the buyer in connection with the same sale unless disclosure is 1324
made in accordance with the provisions of subsection [(c)] (b) of this 1325
section. Any fee, commission or other valuable consideration received 1326
by such [broker or salesperson] real estate licensee for negotiating, 1327
soliciting, arranging, placing or finding a first mortgage loan shall (1) be 1328 Raised Bill No. 6769
LCO No. 4822 43 of 58
related to the services actually performed, as determined by the Banking 1329
Commissioner by regulations adopted pursuant to chapter 54, (2) not be 1330
imposed for the referral of the buyer to the mortgage lender by such 1331
[broker or salesperson] real estate licensee, and (3) be paid directly to 1332
[the broker or salesperson] such real estate licensee by the buyer rather 1333
than from the mortgage loan proceeds at the time of closing. 1334
[(c)] (b) Any disclosure made pursuant to subsection [(b)] (a) of this 1335
section shall be made to and acknowledged by the buyer prior to the 1336
time the buyer signs a contract with the real estate [broker or 1337
salesperson] licensee for mortgage brokering services. Such disclosure 1338
shall include the following notice printed in at least ten-point boldface 1339
capital letters: 1340
I UNDERSTAND THAT THE REAL ESTATE BROKER OR 1341
SALESPERSON IN THIS TRANSACTION HAS OFFERED TO ASSIST 1342
ME IN FINDING A MORTGAGE LOAN. ADDITIONALLY, I 1343
UNDERSTAND THAT THIS REAL ESTATE BROKER OR 1344
SALESPERSON DOES NOT REPRESENT ANY PARTICULAR 1345
MORTGAGE LENDER AND WILL ATTEMPT TO OBTAIN THE BEST 1346
TERMS AVAILABLE WITHIN THE MORTGAGE LOAN MARKET 1347
FOR MY SPECIFIC HOME FINANCING NEEDS. IF THE REAL 1348
ESTATE BROKER OR SALESPERSON DOES NOT FULFILL HIS 1349
FIDUCIARY OBLIGATION I MAY FILE A COMPLAINT WITH THE 1350
DEPARTMENT OF BANKING. I AL SO UNDERSTAND THAT I MAY 1351
ATTEMPT TO FIND A MORTGAGE LOAN TO FINANCE THE 1352
PURCHASE OF MY HOME WITHOUT THE ASSISTANCE OF THE 1353
REAL ESTATE BROKER OR SALESPERSON IN WHICH CASE I WILL 1354
NOT BE OBLIGATED TO PAY A FEE TO THE REAL ESTATE BROKER 1355
OR SALESPERSON. 1356
[(d)] (c) No mortgage lender may refuse to close a mortgage loan 1357
secured by residential real property because the buyer has not paid a 1358
fee, commission or other valuable consideration to a real estate [broker 1359
or salesperson] licensee for negotiating, soliciting, arranging, placing or 1360
finding the first mortgage loan. 1361 Raised Bill No. 6769
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Sec. 29. Section 20-325d of the general statutes is repealed and the 1362
following is substituted in lieu thereof (Effective April 1, 2024): 1363
(a) [On and after January 1, 2018, a real estate broker or real estate 1364
salesperson licensed under this chapter] A real estate licensee who 1365
represents a seller, lessor, prospective purchaser or lessee in a real estate 1366
transaction shall disclose, in writing, the identity of [his or her] the real 1367
estate licensee's client to any party to the transaction who is not 1368
represented by another real estate [broker or real estate salesperson 1369
licensed under this chapter] licensee. The real estate [broker or real 1370
estate salesperson] licensee shall make the disclosure required under 1371
this [section] subsection: (1) If the transaction concerns residential real 1372
property, [as defined in section 20-325c,] (A) at the beginning of the first 1373
personal meeting concerning the prospective purchaser's or lessee's 1374
specific needs in the transaction, or (B) at the beginning of the first 1375
personal meeting with the seller or lessor concerning the seller's or 1376
lessor's real property; or (2) if the transaction is a commercial real estate 1377
transaction, [as defined in section 20-311,] before the prospective 1378
purchaser or lessee signs the purchase contract or lease. Such disclosure 1379
shall be signed by a prospective purchaser or lessee and attached to any 1380
offer or agreement to purchase or lease signed by a prospective 1381
purchaser or lessee. 1382
(b) In addition to the disclosures required under subsection (a) of this 1383
section, a real estate licensee shall: (1) Disclose to a prospective party (A) 1384
the types of agency relationships available to the prospective party, and 1385
(B) that the prospective party should not share confidential information 1386
with the real estate licensee until such prospective party has entered into 1387
a written representation agreement with such real estate licensee; and 1388
(2) provide to a prospective party the disclosure form concerning 1389
housing discrimination and federal and state fair housing laws 1390
developed pursuant to section 20-327h, as amended by this act. 1391
(c) The Commissioner of Consumer Protection shall adopt such 1392
regulations, in accordance with chapter 54, as the commissioner deems 1393
necessary to carry out the provisions of this section. 1394 Raised Bill No. 6769
LCO No. 4822 45 of 58
Sec. 30. Section 20-325f of the general statutes is repealed and the 1395
following is substituted in lieu thereof (Effective April 1, 2024): 1396
No real estate broker shall make any unilateral offer of subagency or 1397
agree to compensate, appoint, employ, cooperate with or otherwise 1398
affiliate with a subagent for the sale or purchase of real property. 1399
[without the informed written consent of the person whom the real 1400
estate broker represents. Such written consent shall contain the name 1401
and real estate license number of the real estate broker to be appointed 1402
as the subagent and shall contain a statement notifying the person 1403
whom the real estate broker represents that the law imposes vicarious 1404
liability on the principal for the acts of the subagent.] 1405
Sec. 31. Section 20-325h of the general statutes is repealed and the 1406
following is substituted in lieu thereof (Effective April 1, 2024): 1407
[(a)] No real estate licensee shall: (1) Reveal any confidential 1408
information concerning a prospective party or a person whom the real 1409
estate licensee represented either as an agent, designated buyer agent or 1410
[a] designated seller agent; (2) use any confidential information 1411
concerning [that] such prospective party or person to [the] such 1412
prospective party's or person's disadvantage; or (3) use any confidential 1413
information concerning [that] such prospective party or person for [the] 1414
such real estate [broker's or real estate salesperson's] licensee's 1415
advantage or the advantage of a third party, except (A) as required by 1416
legal process, (B) as necessary to defend [the] such real estate [broker or 1417
real estate salesperson] licensee from allegations of wrongful or 1418
negligent conduct, or (C) as necessary to prevent the commission of a 1419
crime. 1420
[(b) As used in this section, "confidential information" means facts 1421
concerning a person's assets, liabilities, income, expenses, motivations 1422
to purchase, rent or sell real property and previous offers received or 1423
made to purchase or lease real property which are not authorized by the 1424
client, a matter of general knowledge, part of a public record or file to 1425
which access is authorized pursuant to section 1-210 or otherwise 1426 Raised Bill No. 6769
LCO No. 4822 46 of 58
subject to disclosure under any other provision of the general statutes 1427
or any regulation of Connecticut state agencies.] 1428
Sec. 32. Section 20-325l of the general statutes is repealed and the 1429
following is substituted in lieu thereof (Effective April 1, 2024): 1430
[(a) As used in this section: (1) "Licensed broker" means a person 1431
licensed under this chapter as a real estate broker, (2) "licensed 1432
salesperson" means a person licensed under this chapter as a real estate 1433
salesperson, (3) "out-of-state broker" means a person licensed in another 1434
state as a real estate broker who is not licensed as a real estate broker 1435
under this chapter, (4) "out-of-state salesperson" means a person 1436
licensed in another state as a real estate salesperson who is not licensed 1437
as a real estate salesperson under this chapter, (5) "person" means a 1438
person, as defined in section 20-311, and (6) "advertising" means 1439
advertising, as defined in section 20-329a.] 1440
[(b)] (a) An out-of-state broker may perform acts with respect to a 1441
commercial real estate transaction that require a license under this 1442
chapter, provided the out-of-state broker: [complies with the laws of this 1443
state with respect to the transaction and:] 1444
(1) Works in cooperation with a licensed broker, whether in a 1445
cobrokerage, referral or other cooperative agreement or arrangement; 1446
(2) Enters into a written agreement with a licensed broker that 1447
includes the terms of cooperation and any compensation to be paid by 1448
the licensed broker and a statement that the out-of-state broker and the 1449
out-of-state broker's agents will comply with the laws of this state; 1450
(3) Provides the licensed broker a copy of the out-of-state broker's 1451
license or other proof of licensure from the [jurisdictions] states where 1452
the out-of-state broker maintains a license as a real estate broker; [and] 1453
(4) Deposits all escrow funds, security deposits, and other money 1454
received pursuant to the commercial real estate transaction to be held as 1455
provided in section 20-324k unless the agreement required in 1456 Raised Bill No. 6769
LCO No. 4822 47 of 58
subdivision (2) of this subsection specifies otherwise; [.] 1457
(5) Complies with the laws of this state with respect to the transaction; 1458
and 1459
(6) Is credentialled as a real estate broker in another state. 1460
[(c)] (b) An out-of-state salesperson may perform acts with respect to 1461
a commercial real estate transaction that require a license as a real estate 1462
salesperson under this chapter, provided the out-of-state salesperson 1463
complies with the laws of this state with respect to the transaction and: 1464
(1) Works under the direct supervision of an out-of-state broker who 1465
meets the requirements set forth in [subdivision (1)] subdivisions (1), (5) 1466
and (6) of subsection [(b)] (a) of this section; and 1467
(2) Provides the licensed broker who is working in cooperation with 1468
the out-of-state broker a copy of the out-of-state salesperson's license or 1469
other proof of licensure from the [jurisdictions] states where the out-of-1470
state salesperson maintains a license as a real estate salesperson. 1471
[(d)] (c) Any out-of-state broker or out-of-state salesperson licensed 1472
in a state that has no distinction between a real estate broker license and 1473
a real estate salesperson license shall be subject to the requirements of 1474
subsection [(b)] (a) of this section with regard to any commercial real 1475
estate transaction in this state. 1476
[(e)] (d) Each out-of-state broker or out-of-state salesperson that 1477
advertises for sale commercial real estate pursuant to this section shall 1478
include in any advertising material the name of the licensed broker with 1479
whom the out-of-state broker has a written agreement pursuant to 1480
subdivision (2) of subsection [(b)] (a) of this section. Nothing in this 1481
section shall permit an out-of-state broker or out-of-state salesperson to 1482
accompany a prospective buyer at the site of commercial real estate 1483
pursuant to a real estate transaction in this state. 1484
(e) An out-of-state real estate licensee, other than an out-of-state 1485
leasing agent, may receive compensation for referring to a real estate 1486 Raised Bill No. 6769
LCO No. 4822 48 of 58
licensee in this state a prospective party to a real estate transaction in 1487
this state. 1488
Sec. 33. Section 20-325m of the general statutes is repealed and the 1489
following is substituted in lieu thereof (Effective April 1, 2024): 1490
(a) Any real estate broker licensed under the provisions of this 1491
chapter who engages in the real estate business [, as defined in section 1492
20-311,] shall retain the following records for a period of not less than 1493
seven years after any real estate transaction closes, all funds held in 1494
escrow for such transaction are disbursed or the listing agreement or 1495
buyer or tenant representation agreement expires, whichever occurs 1496
later: (1) All purchase contracts, leases, options, written offers or 1497
counteroffers drafted by such broker or on behalf of such broker; (2) the 1498
listing agreement or buyer or tenant representation agreement, any 1499
extensions of or amendments to such agreements and any disclosures 1500
or agreements required pursuant to sections 20-325a to 20-325l, 1501
inclusive, as amended by this act; and (3) all canceled checks, unused 1502
checks, checkbooks and bank statements for any escrow or trust account 1503
maintained pursuant to section 20-324k. [Such] 1504
(b) Each leasing agent licensed under the provisions of this chapter 1505
shall retain copies of such leasing agent's employment agreement or 1506
contract with a development owner for a period of not less than seven 1507
years. 1508
(c) All records [may] required under subsection (a) or (b) of this 1509
section shall be retained in [any format, electronic or otherwise,] an 1510
electronic format that is capable of producing an accurate copy of the 1511
original documents unless it is commercially impractical for a real estate 1512
broker or leasing agent to retain such records in such format. If it is 1513
commercially impractical for a real estate broker or leasing agent to 1514
retain such records in an electronic format, the real estate broker or 1515
leasing agent shall retain such records in a paper format that is capable 1516
of producing an accurate copy [in paper format] of the original 1517
[document] documents. Each real estate broker or leasing agent shall 1518 Raised Bill No. 6769
LCO No. 4822 49 of 58
make such records available to the department upon any request made 1519
by the department for such records. 1520
Sec. 34. Section 20-327c of the general statutes is repealed and the 1521
following is substituted in lieu thereof (Effective April 1, 2024): 1522
(a) On or after January 1, 1996, every agreement to purchase 1523
residential real estate, for which a written residential condition report 1524
is, or written residential condition reports are, required pursuant to 1525
section 20-327b, shall include a requirement that the seller credit the 1526
purchaser with the sum of five hundred dollars at closing should the 1527
seller fail to furnish the written residential condition report or reports as 1528
required by sections 20-327b to 20-327e, inclusive. 1529
(b) [(1)] No seller who credits a purchaser pursuant to subsection (a) 1530
of this section shall, by reason of such credit, be excused from disclosing 1531
to the purchaser any defect in the residential real estate if such defect: 1532
[(A)] (1) Is subject to disclosure pursuant to section 20-327b; 1533
[(B)] (2) Is within the seller's actual knowledge of such residential real 1534
estate; and 1535
[(C)] (3) Significantly impairs [(i)] (A) the value of such residential 1536
real estate, [(ii)] (B) the health or safety of future occupants of such 1537
residential real estate, or [(iii)] (C) the useful life of such residential real 1538
estate. 1539
[(2)] (c) A purchaser may, without limiting any other remedies 1540
available to the purchaser, bring a civil action in the judicial district in 1541
which the residential real estate is located to recover actual damages 1542
from a seller who fails to disclose to such purchaser any defect described 1543
in [subdivision (1) of this subsection to such purchaser] subsection (b) 1544
of this section. 1545
Sec. 35. Subsections (a) and (b) of section 20-327f of the general 1546
statutes are repealed and the following is substituted in lieu thereof 1547
(Effective April 1, 2024): 1548 Raised Bill No. 6769
LCO No. 4822 50 of 58
(a) With respect to a contract for the sale of [a one-to-four family] 1549
residential real property, if the seller provides written notice to the 1550
purchaser, prior to, or upon, entering into the contract, of the availability 1551
of the lists of hazardous waste facilities pursuant to section 22a-134f, the 1552
seller and any real estate licensee shall be deemed to have fully satisfied 1553
any duty to disclose the presence of all hazardous waste facilities, as 1554
defined in section 22a-134f even if: (1) The list required to be submitted 1555
pursuant to section 22a-134f has not been submitted, (2) the list has not 1556
been received or made available as required in section 22a-134f, or (3) 1557
there is an error, omission or inaccuracy in the list. 1558
(b) With respect to a contract for the sale of [a one-to-four family] 1559
residential real property, if the seller provides written notice to the 1560
purchaser, prior to, or upon, entering into the contract, of the availability 1561
of information concerning environmental matters from the United 1562
States Environmental Protection Agency, the National Response Center, 1563
the United States Department of Defense and third-party providers, the 1564
seller and any real estate licensee shall be deemed to have fully satisfied 1565
any duty to disclose environmental matters concerning properties other 1566
than the property that is the subject of the contract. 1567
Sec. 36. Subsection (a) of section 20-327g of the general statutes is 1568
repealed and the following is substituted in lieu thereof (Effective April 1569
1, 2024): 1570
(a) With respect to a contract for the sale of [a one-to-four family] 1571
residential real property, if the seller provides written notice to the 1572
purchaser, prior to, or upon, entering into the contract, that a list of local 1573
properties upon which hunting or shooting sports regularly take place 1574
may be available at the office of the town clerk, the seller and any real 1575
estate licensee shall be deemed to have fully satisfied any duty to 1576
disclose the presence of local properties upon which hunting or 1577
shooting sports regularly take place, even if (1) the list is not available 1578
at the office of the town clerk, or (2) there is an error, omission or 1579
inaccuracy in the list. 1580 Raised Bill No. 6769
LCO No. 4822 51 of 58
Sec. 37. Subsection (b) of section 20-327h of the general statutes is 1581
repealed and the following is substituted in lieu thereof (Effective April 1582
1, 2024): 1583
(b) Commencing sixty days after the date on which the Commission 1584
on Human Rights and Opportunities makes a disclosure form available 1585
pursuant to subsection (a) of this section, each person who offers a 1586
residential real property [containing two or more units] in the state for 1587
sale, exchange or for lease with option to buy shall attach a photocopy, 1588
duplicate original, facsimile transmission or other exact reproduction or 1589
duplicate of such disclosure form, signed by the prospective purchaser, 1590
to any purchase agreement, option or lease containing a purchase 1591
option, at the time [of closing] such purchase agreement, option or lease 1592
is executed. 1593
Sec. 38. Section 20-328 of the general statutes is repealed and the 1594
following is substituted in lieu thereof (Effective April 1, 2024): 1595
The Commissioner of Consumer Protection, with advice and 1596
assistance from the commission, may adopt regulations, in accordance 1597
with chapter 54, relating to the form and manner of filing applications 1598
for licenses under this chapter and the manner in which [licensed real 1599
estate brokers and licensed real estate salespersons] real estate licensees 1600
shall conduct the real estate business. 1601
Sec. 39. Section 20-329 of the general statutes is repealed and the 1602
following is substituted in lieu thereof (Effective April 1, 2024): 1603
The provisions of this chapter concerning the licensure of real estate 1604
[brokers and real estate salespersons] licensees shall not apply to: (1) 1605
Any person who as owner or lessor performs any of the acts enumerated 1606
in section 20-311, as amended by this act, with reference to property 1607
owned, leased or sought to be acquired or leased by the person, or to the 1608
person's regular employees who are employed as on-site residential 1609
superintendents or custodians, with respect to the property so owned 1610
or leased or sought to be acquired or leased when such acts are 1611
performed in the regular course of, or incident to, the management of 1612 Raised Bill No. 6769
LCO No. 4822 52 of 58
such property and the investment therein; (2) any person acting as 1613
attorney-in-fact under a duly executed power of attorney from the 1614
owner authorizing the final consummation by performance of any 1615
contract for the sale, leasing or exchange of real estate, or to service 1616
rendered by any attorney-at-law in the performance of the attorney-at-1617
law's duties as such attorney-at-law; (3) a receiver, trustee in 1618
bankruptcy, administrator, executor or other fiduciary, while acting as 1619
such, or any person selling real estate under order of any court, or to a 1620
trustee acting under a trust agreement, deed of trust or will, or the 1621
regular salaried employees thereof; (4) witnesses in court as to the 1622
values of real estate; (5) persons in the employ of the federal or state 1623
government or any political subdivision thereof while acting in the 1624
course of such employment; (6) any employee of any nonprofit housing 1625
corporation that (A) has been certified as a tax-exempt organization 1626
under Section 501(c)(3) of the Internal Revenue Code of 1986, or any 1627
subsequent corresponding internal revenue code of the United States, 1628
as from time to time amended, and manages a housing project, or (B) 1629
manages a housing project assisted in whole or in part by the federal 1630
government pursuant to Section 8 of The United States Housing Act of 1631
1937, as amended from time to time, while such employee is performing 1632
duties in the regular course of, or incidental to, the management of such 1633
housing project; (7) any person licensed to maintain or operate a mobile 1634
manufactured home park under chapter 412 who performs any of the 1635
acts enumerated in section 20-311, as amended by this act, with 1636
reference to lots or mobile manufactured homes within the park or to 1637
the person's employees with respect to lots or mobile manufactured 1638
homes within such park when such acts are performed in the regular 1639
course of, or incidental to, the management of such property and the 1640
investment therein; (8) persons licensed as sellers of mobile 1641
manufactured homes under section 21-67; or (9) any person or such 1642
person's regular employee who, as owner, lessor, licensor, manager, 1643
representative or agent manages, leases, or licenses space on or in a 1644
tower, building or other structure for (A) "personal wireless services 1645
facilities" or facilities for "private mobile service" as those terms are 1646
defined in 47 USC 332, which facilities shall be unattended, and the 1647 Raised Bill No. 6769
LCO No. 4822 53 of 58
installation and maintenance of related devices authorized by the 1648
Federal Communications Commission, and ancillary equipment used to 1649
operate such devices and equipment shelters therefor, in an area not to 1650
exceed three hundred sixty square feet for any one service established 1651
by the Federal Communications Commission in 47 CFR, as amended 1652
from time to time, by a provider of any such service, and (B) any right 1653
appropriate to access such facilities and connect or use utilities in 1654
connection with such facilities. 1655
Sec. 40. Section 20-329a of the general statutes is repealed and the 1656
following is substituted in lieu thereof (Effective April 1, 2024): 1657
As used in this section and sections [20-329a] 20-329b to 20-329n, 1658
inclusive, as amended by this act: 1659
(1) "Disposition" or "dispose of" means any sale, exchange, lease, 1660
assignment, award by lottery or other transaction designed to convey 1661
an interest in a subdivision or parcel, lot, or unit in a subdivision when 1662
undertaken for gain or profit; 1663
(2) "Offer" means every inducement, solicitation or attempt to bring 1664
about a disposition; 1665
(3) "Person" means an individual, firm, company, association, 1666
corporation, limited liability company, government or governmental 1667
subdivision or agency, business trust, estate, trust, partnership, 1668
unincorporated association or organization, two or more of any of the 1669
foregoing having a joint or common interest, or any other legal or 1670
commercial entity; 1671
(4) "Broker" means a resident real estate broker duly licensed under 1672
this chapter; 1673
(5) "Salesperson" means any person duly licensed as a real estate 1674
salesperson under this chapter; 1675
(6) "Purchaser" means a person who acquires an interest in any lot, 1676
parcel or unit in a subdivision; and 1677 Raised Bill No. 6769
LCO No. 4822 54 of 58
(7) "Subdivision" means any improved or unimproved land or tract 1678
of land located outside this state which is divided or proposed to be 1679
divided into five or more lots, parcels, units, or interests for the purpose 1680
of disposition, at any time as part of a common promotional plan. Any 1681
land which is under common ownership or which is controlled by a 1682
single developer or a group of developers acting in concert, is 1683
contiguous in area, and is designated or advertised as a common unit or 1684
known by a common name, shall be presumed, without regard to the 1685
number of lots, parcels, units or interests covered by each individual 1686
offering, to be part of a common promotional plan. [; and] 1687
[(8) "Advertising" means publishing or causing to be published: (A) 1688
By means of any newspaper or periodical; (B) by means of any radio or 1689
television broadcast; (C) by means of any written or printed or 1690
photographic matter produced by any duplicating process producing 1691
ten copies or more, any information offering for sale or for the purpose 1692
of causing or inducing any other person to purchase or to acquire an 1693
interest in the title to subdivided lands, including the land sales contract 1694
to be used and any photographs or drawings or artist's representations 1695
of physical conditions or facilities on the property existing or to exist; or 1696
(D) by means of any material used in connection with the disposition or 1697
offer of subdivided lands by radio, television, telephone or any other 1698
electronic means. "Advertising" does not include: Stockholder 1699
communications such as annual reports and interim financial reports, 1700
proxy materials, registration statements, securities prospectuses, 1701
applications for listing securities on stock exchanges, and the like; 1702
prospectuses, property reports, offering statements or other documents 1703
required to be delivered to prospective purchasers by an agency of any 1704
other state or the federal government; all communications addressed to 1705
and relating to the account of any persons who have previously 1706
executed a contract for the purchase of the subdivider's lands except 1707
where directed to the sale of additional lands; or press releases or other 1708
communications delivered to newspapers or other periodicals for 1709
general information or public relations purposes, provided no charge is 1710
made by such newspapers or other periodicals for the publication or use 1711 Raised Bill No. 6769
LCO No. 4822 55 of 58
of any part of such communications.] 1712
Sec. 41. Section 20-329n of the general statutes is repealed and the 1713
following is substituted in lieu thereof (Effective April 1, 2024): 1714
All moneys paid or advanced by a purchaser or lessee or prospective 1715
purchaser or prospective lessee for any lot, parcel, unit or interest in any 1716
subdivision, the disposition of which is controlled by sections 20-329a, 1717
as amended by this act, 20-329b, 20-329d, 20-329e, 20-329f [,] and 20-1718
329h, [and 20-329i,] or such portion of such moneys as the commission 1719
may determine is sufficient for the protection of the interests of such 1720
purchaser or lessee shall be deposited by the seller or lessor in an escrow 1721
account, approved by the commission, in a bank doing business in this 1722
state. Such money shall remain in such escrow account until (1) a proper 1723
and valid release is obtained for such money, (2) the owner or 1724
subdivider or the purchaser or lessee has defaulted under their contract 1725
for sale or lease and the commission or a court has made a determination 1726
as to the disposition of such money, or (3) the owner or subdivider or 1727
the seller or lessor orders the return of such money to such purchaser or 1728
lessee. 1729
Sec. 42. Subsection (c) of section 47-90a of the general statutes is 1730
repealed and the following is substituted in lieu thereof (Effective April 1731
1, 2024): 1732
(c) Every person who directly or indirectly controls a declarant liable 1733
under subsection (a) of this section, every general partner, officer or 1734
director of a declarant and every person occupying a similar status or 1735
performing a similar function, every employee of the declarant who 1736
materially aids in the disposition, and every agent who materially aids 1737
in the disposition is also liable jointly and severally with and to the same 1738
extent as the declarant, provided the plaintiff sustains the burden of 1739
proof that such person knew or, in the exercise of reasonable care 1740
expected by such persons in the reasonable exercise of their duties, 1741
should have known of the existence of the facts by reason of which the 1742
liability is alleged to exist. There is a right to contribution in cases of 1743 Raised Bill No. 6769
LCO No. 4822 56 of 58
contract among persons so liable. No person shall be liable under this 1744
section whose relationship to the declarant or other person consists 1745
solely of rendering professional and other customary services, 1746
including, but not limited to: (1) An attorney-at-law, architect, land 1747
surveyor or engineer; (2) a lending institution which is not a declarant 1748
whose relationship to the declarant consists solely of rendering 1749
customary banking services and holding a mortgage on all or a portion 1750
of the condominium which mortgage, or agreements or instruments 1751
relating thereto, may contain mutual covenants and agreements 1752
concerning the approval of the condominium instruments and 1753
amendments thereto, and regulates the activity of the declarant under 1754
the condominium instruments or an officer, director or employee of 1755
such lending institution; (3) a real estate broker or salesman whose 1756
relationship to the declarant consists solely of [rendering services 1757
described in subdivision (6) of] engaging in the real estate business, as 1758
defined in section 20-311, as amended by this act, and other customary 1759
services; or (4) a person whose sole involvement in the disposition of a 1760
condominium unit occurs subsequent to the date of the act or omission 1761
out of which any liability under subsection (a) of this section arises. 1762
Sec. 43. Subsection (a) of section 47-42f of the general statutes is 1763
repealed and the following is substituted in lieu thereof (Effective April 1764
1, 2024): 1765
(a) As used in this section: (1) "Residential real property" has the same 1766
meaning as provided in section [20-325c] 20-311, as amended by this act, 1767
but does not include property owned by the state or any political 1768
subdivision thereof; (2) "benefited property" or "property that benefits" 1769
includes residential real property burdened by an easement or right-of-1770
way, the owner of which residential real property uses such easement 1771
or right-of-way; and (3) "easement" or "right-of-way" means a private 1772
appurtenant easement or right-of-way. 1773
Sec. 44. Sections 20-329i and 20-324j of the general statutes are 1774
repealed. (Effective April 1, 2024) 1775 Raised Bill No. 6769
LCO No. 4822 57 of 58
This act shall take effect as follows and shall amend the following
sections:
Section 1 April 1, 2024 20-311
Sec. 2 April 1, 2024 New section
Sec. 3 April 1, 2024 New section
Sec. 4 April 1, 2024 New section
Sec. 5 April 1, 2024 New section
Sec. 6 April 1, 2024 New section
Sec. 7 April 1, 2024 New section
Sec. 8 April 1, 2024 20-311b
Sec. 9 April 1, 2024 20-312
Sec. 10 April 1, 2024 20-312b
Sec. 11 April 1, 2024 20-314
Sec. 12 April 1, 2024 20-314a
Sec. 13 April 1, 2024 20-316(b) and (c)
Sec. 14 April 1, 2024 20-317
Sec. 15 April 1, 2024 20-319
Sec. 16 April 1, 2024 20-319a
Sec. 17 April 1, 2024 20-320
Sec. 18 April 1, 2024 20-320a
Sec. 19 April 1, 2024 20-320b(a)
Sec. 20 April 1, 2024 20-323
Sec. 21 April 1, 2024 20-324a
Sec. 22 April 1, 2024 20-324b
Sec. 23 April 1, 2024 20-324d
Sec. 24 April 1, 2024 20-324e(a) to (f)
Sec. 25 April 1, 2024 20-324i
Sec. 26 April 1, 2024 20-325
Sec. 27 April 1, 2024 20-325a(a)
Sec. 28 April 1, 2024 20-325c
Sec. 29 April 1, 2024 20-325d
Sec. 30 April 1, 2024 20-325f
Sec. 31 April 1, 2024 20-325h
Sec. 32 April 1, 2024 20-325l
Sec. 33 April 1, 2024 20-325m
Sec. 34 April 1, 2024 20-327c
Sec. 35 April 1, 2024 20-327f(a) and (b)
Sec. 36 April 1, 2024 20-327g(a)
Sec. 37 April 1, 2024 20-327h(b)
Sec. 38 April 1, 2024 20-328 Raised Bill No. 6769
LCO No. 4822 58 of 58
Sec. 39 April 1, 2024 20-329
Sec. 40 April 1, 2024 20-329a
Sec. 41 April 1, 2024 20-329n
Sec. 42 April 1, 2024 47-90a(c)
Sec. 43 April 1, 2024 47-42f(a)
Sec. 44 April 1, 2024 Repealer section
Statement of Purpose:
To implement the Department of Consumer Protection's
recommendations concerning real estate licensees and enforcement.
[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.]