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General Assembly Substitute Bill No. 6769
January Session, 2023
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 Section 20-311 of the general statutes is repealed and the 1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
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 Substitute Bill No. 6769
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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 having a working relationship with a real estate 24
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
subject to disclosure under any other provision of the general statutes 46
or regulations of Connecticut state agencies; 47 Substitute Bill No. 6769
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(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 63
broker responsible for the supervision and overall operation of such 64
business entity's engagement in the real estate business in this state; 65
[(4)] (12) "Designated buyer agent" means a [broker or salesperson] 66
real estate licensee, other than a leasing agent, who is designated by the 67
real estate broker by whom such real estate licensee is employed, or with 68
whom [the broker or salesperson] such real estate licensee is affiliated, 69
[or employed to] solely to represent a named buyer or tenant client of 70
the real estate broker during the term of a buyer representation 71
agreement or authorization; 72
[(5)] (13) "Designated seller agent" means a [broker or salesperson] 73
real estate licensee, other than a leasing agent, who is designated by the 74
real estate broker by whom such real estate licensee is employed, or with 75
whom [the broker or salesperson] such real estate licensee is affiliated, 76
[or employed to] solely to represent a named seller or landlord client of 77
the real estate broker during the term of a listing agreement or 78 Substitute Bill No. 6769
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authorization; 79
(14) "Development owner" means (A) the owner of record of a 80
multiunit development that is offered for lease, or (B) the parent 81
company of such owner of record if such parent company holds a one 82
hundred per cent ownership interest in such owner of record; 83
[(6) "Engaging in the real estate business"] (15) "Engage in the real 84
estate business" means to, while acting for another and for a fee, 85
commission or other valuable consideration, [in the listing for sale, 86
selling, exchanging, buying or renting, or offering or attempting to 87
negotiate a sale, exchange, purchase or rental of] negotiate for or offer, 88
or attempt to list for sale, sell, exchange, buy or rent, an estate or interest 89
in real estate or [a resale of] to resell a mobile manufactured home, as 90
defined in [subdivision (1) of section 21-64, or collecting upon a loan 91
secured or to be secured by a mortgage or other encumbrance upon or 92
transfer of real estate] section 21-64; 93
(16) "Incapacity" means any physical or mental incapacity which 94
prevents an individual from substantially satisfying such individual's 95
duties and responsibilities as a real estate licensee; 96
(17) "Influence residential real estate appraisals" includes, but is not 97
limited to, refusing or intentional failing to refer a homebuyer, or 98
encouraging other real estate licensees not to refer a homebuyer, to a 99
mortgage broker or lender, as such terms are defined in section 36a-760, 100
based solely on the fact that the mortgage broker or lender uses an 101
appraiser who has provided an appraisal reflecting a fair market value 102
estimate that was less than the sale contract price; 103
(18) "Leasing agent" means any individual who (A) acts as an agent 104
for a principal for a commission, fee or other valuable consideration, and 105
(B) engages in leasing or renting activity, including, but not limited to, 106
(i) collecting security deposits, (ii) offering or attempting to negotiate a 107
rental, or (iii) collecting, offering or attempting to collect rent for the use 108
of real estate; 109 Substitute Bill No. 6769
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(19) "Multiunit development" means any residential property with at 110
least fifty units that are leased or available to be leased; 111
(20) "Negotiate" means acting, directly or indirectly, as an 112
intermediary by facilitating, or participating in, communications 113
between parties related to the parties' interests in a real estate or mobile 114
manufactured home transaction; 115
(21) "Nonmaterial fact concerning real property" means any fact, set 116
of facts or circumstances surrounding real property which includes, but 117
is not limited to, the fact that (A) an occupant of real property is or has 118
been infected with a disease on the list of reportable diseases, emergency 119
illnesses and health conditions issued by the Commissioner of Public 120
Health pursuant to section 19a-2a, or (B) the real property was at any 121
time suspected to have been the site of a death or felony; 122
[(7)] (22) "Person" means any individual [, partnership, association, 123
limited liability company or corporation] or business entity; 124
(23) "Promotional note" (A) means any promissory note that (i) is 125
secured by a trust deed executed (I) on unimproved real property, (II) 126
after construction of an improvement of real property but before the first 127
sale of such property so improved, or (III) as a means of financing the 128
first purchase of such property so improved, and (ii) is subordinate, or 129
which by its terms may become subordinate, to any other trust deed on 130
such property, and (B) does not include any note which was executed 131
more than three years prior to being offered for sale or was secured by 132
a first trust deed on real property in a subdivision, which evidences a 133
bona fide loan made in connection with the financing of the usual costs 134
of the development of one or more residential, commercial or industrial 135
buildings on the property under a written agreement providing (i) for 136
either the disbursement of the loan funds as costs are incurred or in 137
relation to the progress of the work, and (ii) for title insurance insuring 138
the priority of the security as against mechanic's liens or for the final 139
disbursement of at least ten per cent of the loan funds after the 140
expiration of the period for the filing of mechanic's liens; 141 Substitute Bill No. 6769
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(24) "Prospective party" means any person that communicates with a 142
real estate licensee in contemplation of potential representation by the 143
real estate licensee in a real estate transaction; 144
[(8)] (25) "Real estate broker" or "broker" means (A) any person [, 145
partnership, association, limited liability company or corporation which 146
acts for another person or entity and for a fee, commission or other 147
valuable consideration, lists for sale, sells, exchanges, buys or rents, or 148
offers or attempts to negotiate a sale, exchange, purchase or rental of, an 149
estate or interest in real estate, or a resale of a mobile manufactured 150
home, as defined in subdivision (1) of section 21-64, or collects or offers 151
or attempts to collect rent for the use of real estate] engaged in the real 152
estate business, and (B) any person [, partnership, association, limited 153
liability company or corporation] employed by or on behalf of the owner 154
or owners of lots or other parcels of real estate, at a stated salary, upon 155
commission, upon a salary and commission basis or otherwise to sell 156
such real estate, or any parts thereof, in lots or other parcels, and who 157
sells or exchanges, or offers, attempts or agrees to negotiate the sale or 158
exchange of, any such lot or parcel of real estate; 159
(26) "Real estate licensee" means any leasing agent, real estate broker 160
or real estate salesperson licensed pursuant to this chapter; 161
[(9)] (27) "Real estate salesperson" or "salesperson" means [a person] 162
any individual who is affiliated with [any real estate broker as an 163
independent contractor or employed by a real estate broker to list for 164
sale, sell or offer for sale, to buy or offer to buy or to negotiate the 165
purchase or sale or exchange of real estate, or to offer for resale, a mobile 166
manufactured home, as defined in subdivision (1) of section 21-64, or to 167
lease or rent or offer to lease, rent or place for rent any real estate, or to 168
collect or offer or attempt to collect rent for the use of real estate] a 169
supervising licensee to (A) engage in the real estate business for or on 170
behalf of such [real estate broker, or who offers, sells or attempts to sell 171
the real estate or mobile manufactured homes of a licensed broker] 172
supervising licensee, or (B) if such individual is acting for another 173
person as a designated seller agent or designated buyer agent, [lists for 174 Substitute Bill No. 6769
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sale, sells, exchanges, buys or rents, or offers or attempts to negotiate a 175
sale, exchange, purchase or rental of, an estate or interest in real estate, 176
or a resale of a mobile manufactured home, as defined in subsection (a) 177
of section 21-64, or collects or offers or attempts to collect rent for the 178
use of real estate, but does not include employees of any real estate 179
broker whose principal occupation is clerical work in an office, or 180
janitors or custodians engaged principally in that occupation] engage in 181
the real estate business; 182
(28) "Real estate transaction" means any transaction in which (A) real 183
property is legally transferred to another person, or (B) a lease 184
agreement is executed between a landlord and a tenant; 185
(29) "Residential real property" means any one to four-family 186
residential real estate located in this state, including, but not limited to, 187
(A) a cooperative or condominium where the total number of units in 188
such cooperative or condominium does not exceed four units, and (B) 189
any individual unit within a multiunit development; 190
(30) "School" means any person that offers prelicensing or continuing 191
education courses approved pursuant to this chapter and sections 3 and 192
4 of this act; 193
(31) "Supervising licensee" means the real estate broker that is 194
responsible for controlling and supervising another real estate licensee 195
or a team; 196
[(10)] (32) "Team" means [a group] any combination of at least two 197
licensed real estate brokers, designated brokers or real estate 198
salespersons who are affiliated with the same [sponsoring real estate 199
broker] supervising licensee and engage in advertising as a group using 200
a team name; and 201
[(11)] (33) "Team name" means the name used to refer to a team in 202
team advertisements. 203
Sec. 2. (NEW) (Effective April 1, 2024) (a) No associate broker shall 204 Substitute Bill No. 6769
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engage in the real estate business unless the supervising licensee that is 205
responsible for controlling and supervising the associate broker (1) 206
knows that such associate broker is engaging in the real estate business, 207
and (2) has consented to such associate broker engaging in the real estate 208
business. 209
(b) Each supervising licensee shall be responsible for the actions of 210
the associate brokers who are under such supervising licensee's control 211
and supervision to the same extent that such supervising licensee would 212
be responsible for such associate brokers if such associate brokers were 213
real estate salespersons affiliated with such supervising licensee. 214
(c) If an associate broker's affiliation with a supervising licensee is 215
terminated, the associate broker shall notify the department of such 216
termination not later than fourteen calendar days after such termination 217
or such associate broker's affiliation with another supervising licensee, 218
whichever occurs first. 219
(d) Each associate broker shall comply with all advertising 220
requirements and standards that apply to real estate brokers, and shall 221
include the name of the supervising licensee who controls and 222
supervises such associate broker at a prominent location in all of such 223
associate broker's advertisements. 224
Sec. 3. (NEW) (Effective April 1, 2024) (a) (1) A school shall register 225
with the department, in a form and manner prescribed by the 226
Commissioner of Consumer Protection, prior to offering any 227
prelicensing or continuing education course. Such form shall include an 228
attestation by the school that: 229
(A) All courses offered by such school comply with the requirements 230
established in section 4 of this act; and 231
(B) All instructors teaching courses at such school are qualified 232
pursuant to subsection (c) of this section and section 4 of this act. 233
(2) No school shall offer any prelicensing or continuing education 234 Substitute Bill No. 6769
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course in this state unless such school maintains an active registration 235
with the department under this section. 236
(b) Each school registration issued pursuant to this section shall 237
expire biennially, and the initial registration fee and renewal fee for each 238
such school registration shall be one hundred dollars. 239
(c) No school shall permit an instructor to teach a course approved 240
under chapter 392 of the general statutes unless such school has 241
determined that the instructor has: 242
(1) At least five years of experience as a practicing real estate licensee; 243
(2) Expertise, or a professional designation from an institute or 244
society, in the field in which such instructor proposes to teach; or 245
(3) Experience teaching a course in a formal education program or 246
has attended an accredited college or university extension instructors' 247
seminar. For collegiate level courses that are part of a degree program, 248
the instructor shall have (A) teaching experience and a master's degree 249
in an appropriate field, or (B) such other combination of qualifications 250
as the commission may, in the commission's discretion, approve. 251
(d) No school shall offer any course that does not satisfy the 252
requirements established in section 4 of this act. 253
Sec. 4. (NEW) (Effective April 1, 2024) (a) Each school that is registered 254
with the department pursuant to section 3 of this act shall register with 255
the department, in a form and manner prescribed by the Commissioner 256
of Consumer Protection, each prelicensing or continuing education 257
course that such school intends to offer in this state. The fee to register 258
each course under this section shall be fifty dollars, and each course 259
registration application submitted to the department pursuant to this 260
section shall include: 261
(1) An outline of the course content detailing the total duration of 262
such course and the amount of time spent on each subject covered as 263 Substitute Bill No. 6769
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part of such course; 264
(2) The name of, and contact information for, each course instructor; 265
(3) A copy of the certificate issued to students upon completion of 266
such course; 267
(4) The cancellation and refund policy available to students for such 268
course; 269
(5) An attestation by the school that such course meets all the 270
requirements established in this section, section 20-314a of the general 271
statutes, as amended by this act, and all regulations adopted pursuant 272
to chapter 392 of the general statutes; and 273
(6) If such course is provided on an in-person basis, the location at 274
which such course is provided on an in-person basis. 275
(b) Notwithstanding subdivision (3) of subsection (a) of this section, 276
a school that offers more than one course may submit to the department 277
a template course completion certificate for the department's 278
consideration. If the department approves a template course completion 279
certificate, the school that submitted such certificate to the department 280
may use such template to issue all course completion certificates and not 281
be required to submit a copy of such certificates to the department 282
pursuant to subdivision (3) of subsection (a) of this section. 283
(c) No prelicensing or continuing education course shall qualify 284
towards the prelicensing or continuing education requirements 285
established for a real estate license under chapter 392 of the general 286
statutes unless such course has been approved by the department 287
pursuant to this section. 288
(d) The department shall not approve any prelicensing course under 289
this section unless such course is provided on an in-person basis or by 290
way of electronic means that incorporates a live online format. 291 Substitute Bill No. 6769
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(e) (1) Subject to the provisions of subdivision (2) of this subsection, 292
each school that offers a continuing education course under this section 293
shall ensure that no student may complete such course in less time than 294
the total course duration specified in the application that such school 295
filed with the department for such course pursuant to subsection (a) of 296
this section. 297
(2) If a school offers a course described in subdivision (1) of this 298
subsection by electronic means, the school may satisfy the requirements 299
established in subdivision (1) of this subsection by: 300
(A) Offering a live online course format using telecommunications 301
technology that allows for real-time audio communication between the 302
instructor and students; or 303
(B) Using technology that prohibits a student from completing the 304
course in less time than the total course duration specified in the 305
application that such school filed with the department for such course 306
pursuant to subsection (a) of this section. 307
(f) If a school offers any prelicensing or continuing education course 308
under this section by electronic means that do not allow for real-time 309
audio communication between the instructor and students, such school 310
shall include in such course periodic interactive assessments to confirm 311
each student's level of comprehension of, and engagement with, such 312
course. 313
(g) Each course registration issued pursuant to this section shall 314
expire five years after such registration is issued. 315
Sec. 5. (NEW) (Effective April 1, 2024) (a) If a real estate licensee 316
engages in the real estate business and a buyer or renter of real estate 317
uses an interpreter, other than the real estate licensee or an employee of 318
the real estate licensee, in conducting a real estate transaction or 319
negotiations, the real estate licensee shall provide to the buyer or renter 320
and interpreter, and obtain the buyer's or renter's and interpreter's 321
signatures on, forms containing the following language: 322 Substitute Bill No. 6769
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"I, (name of buyer or renter), used (name of interpreter) to act as my 323
interpreter during this real estate transaction or these negotiations. The 324
obligations of this contract or other written agreement were explained 325
to me in my native language by the interpreter. I understand the 326
contract or other written agreement. 327
(signature of buyer or renter) 328
(relationship of interpreter to buyer or renter) 329
I, (name of interpreter), acted as interpreter during this real estate 330
transaction or these negotiations. The obligations of the contract or other 331
written agreement were explained to (name of buyer or renter) in their 332
native language. I understand the contract or other written agreement. 333
(signature of interpreter) 334
(relationship of interpreter to buyer or renter)." 335
(b) Except as provided in subsection (c) of this section, if a real estate 336
licensee engages in the real estate business and acts as an interpreter for 337
a buyer or renter in conducting a transaction or negotiations, the real 338
estate licensee shall provide to the buyer or renter, and obtain the 339
buyer's or renter's signature on, a form containing the following 340
language written in the buyer's or renter's native language: 341
"This real estate transaction or these negotiations were conducted in 342
(buyer's or renter's native language), which is my native language. I 343
voluntarily choose to have the Real Estate (Broker/Salesperson/Leasing 344
Agent) act as my interpreter during the negotiations. The obligations of 345
the contract or other written agreement were explained to me in my 346
native language. I understand the contract or other written agreement." 347
(c) If a language that cannot be reduced to writing is used to conduct 348
a real estate transaction or negotiations, the form required under 349
subsection (b) of this section shall be in the English language. 350 Substitute Bill No. 6769
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Sec. 6. (NEW) (Effective April 1, 2024) (a) If a real estate broker dies or 351
is incapacitated, the executor of such broker's estate or any other person 352
who is legally authorized to act on behalf of such broker in a financial 353
transaction may apply to the department, in a form and manner 354
prescribed by the department, for the appointment of a custodial broker. 355
If the department approves an application for the appointment of a 356
custodial broker, the department shall appoint a custodial broker for the 357
deceased or incapacitated broker. Except as provided in subsection (b) 358
of this section, each custodial broker who is appointed pursuant to this 359
subsection shall serve for a term not to exceed one hundred eighty days. 360
(b) The department may, in the department's discretion, extend a 361
custodial broker's term beyond one hundred eighty days if the 362
department receives a hardship application that is submitted to the 363
department in a form and manner prescribed by the department. 364
(c) Each custodial broker shall act to preserve the financial interests 365
of the deceased or incapacitated real estate broker, or the estate of the 366
deceased real estate broker, for whom such custodial broker is 367
appointed. 368
(d) No real estate broker who is appointed as a custodial broker to 369
conclude the business of a deceased or incapacitated individual real 370
estate broker shall negotiate the purchase, sale or lease of any real estate 371
on behalf of such deceased or incapacitated broker unless: 372
(1) The prospective purchaser, seller, lessor or lessee of such real 373
estate entered into a preexisting buyer agreement, listing agreement or 374
leasing agreement with such deceased or incapacitated broker; and 375
(2) The prospective purchaser or lessor of such real estate has 376
executed a contract or paid a deposit to a seller or lessee to reserve a 377
right to purchase or lease such real estate from such seller or lessee. 378
(e) No business entity shall engage in the real estate business while 379
the designated broker for such business entity is deceased or 380
incapacitated unless a custodial broker has been appointed for such 381 Substitute Bill No. 6769
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business entity. 382
(f) If a custodial broker is appointed to serve as a designated broker 383
for a business entity, the business entity may engage in the real estate 384
business to the same extent that such business entity would engage in 385
such business if such designated broker was not a custodial broker. 386
(g) No real estate salesperson or team member shall engage in the real 387
estate business while the supervising licensee that is responsible for 388
controlling and supervising such salesperson or team is deceased or 389
incapacitated unless a custodial broker has been appointed for such 390
supervising licensee. 391
Sec. 7. (NEW) (Effective April 1, 2024) (a) No leasing agent shall engage 392
in the real estate business except for leasing or renting real property that 393
is exclusively used for residential occupancy. No licensed real estate 394
broker or salesperson shall be required to obtain a leasing agent license 395
to perform leasing activities. Leasing agents shall not engage in any 396
activity that requires a real estate broker's or real estate salesperson's 397
license, including, but not limited to, selling, offering, listing, 398
negotiating, referring or showing for sale, entering into lease-to-own 399
agreements or leasing commercial real estate. A leasing agent shall be 400
employed by a development owner. A leasing agent shall not offer 401
leasing services for any person that is not a development owner. No 402
leasing agent shall engage in the real estate business concerning any 403
property other than on behalf of the owner of record of a multiunit 404
development that employs such leasing agent. A leasing agent shall 405
obtain a written contract from the development owner to demonstrate 406
such employment prior to engaging in any leasing activity at such 407
development. Such contract shall be made available to the department, 408
and produced by the leasing agent in an electronic form, upon a request 409
by the department for such contract. 410
(b) If a leasing agent's affiliation with a development owner is 411
terminated, the leasing agent shall notify the department of such 412
termination not later than fourteen calendar days after such termination 413 Substitute Bill No. 6769
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or such leasing agent's affiliation with another development owner, 414
whichever occurs first. 415
Sec. 8. Section 20-311b of the general statutes is repealed and the 416
following is substituted in lieu thereof (Effective April 1, 2024): 417
(a) Within thirty days after the appointment of the members of the 418
commission, the commission shall meet in the city of Hartford for the 419
purpose of organizing by selecting such officers other than a 420
chairperson as the commission may deem necessary and appropriate. A 421
majority of the members of the commission shall constitute a quorum 422
for the exercise of the powers or authority conferred upon it. 423
(b) [(1)] The commission shall authorize the [Department of 424
Consumer Protection] department to issue licenses to real estate 425
[brokers and real estate salespersons] licensees. 426
[(2)] (c) The commission shall administer the provisions of this 427
chapter as to licensure and issuance, renewal, suspension or revocation 428
of licenses concerning the real estate business. 429
[(c)] (d) The commission shall be provided with the necessary office 430
space in Hartford by the Commissioner of Administrative Services. The 431
place of business of the commission and all files, records and property 432
of the commission shall at all times be and remain at such office, except 433
that inactive files shall be stored at a location designated by the 434
commission. 435
[(d)] (e) The commission shall hold meetings and hearings in 436
Hartford, in space provided by the Commissioner of Administrative 437
Services, or at such places outside of Hartford as shall be determined by 438
the chairman of the commission. The commission shall meet at least 439
once in each three-month period and may meet more often at the call of 440
its chairman. The chairman of the commission shall call a meeting of the 441
commission whenever requested to do so by a majority of the members 442
of the commission. 443 Substitute Bill No. 6769
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[(e)] (f) The commission shall vote on all matters requiring a decision 444
and votes shall be recorded in the commission's minutes. 445
Sec. 9. Section 20-312 of the general statutes is repealed and the 446
following is substituted in lieu thereof (Effective April 1, 2024): 447
(a) No person shall act as a real estate [broker or real estate 448
salesperson] licensee without a license issued by the commission or the 449
Commissioner of Consumer Protection, unless exempt under this 450
chapter. The [Commissioner of Consumer Protection] commissioner 451
may enter into any contract for the purpose of administratively 452
processing the renewal of licenses on behalf of the commission. 453
(b) The practice of engaging in the real estate business, or the offer to 454
[practice real estate brokerage] engage in the real estate business in this 455
state by [individual licensed real estate brokers or real estate 456
salespersons as a corporation, limited liability company, partnership or 457
limited liability partnership, a] real estate licensees, as a business entity 458
is permitted, provided: 459
(1) A material part of the business entity's business [of which] 460
includes engaging in the real estate [brokerage, is permitted, provided 461
(1) the] business; 462
(2) The business entity's personnel [of such corporation, limited 463
liability company, partnership or limited liability partnership] who 464
engage in the real estate [brokerage] business [as real estate brokers or 465
real estate salespersons, and the real estate brokers whose ownership, 466
control, membership or partnership interest is credited toward the 467
requirements of subdivision (3) of this subsection, are licensed or 468
exempt from licensure under this chapter, (2) the corporation, limited 469
liability company, partnership or limited liability partnership] are 470
licensed, or exempt from licensure, under this chapter; 471
(3) The business entity has been issued a real estate broker license [by 472
the commission as provided] as set forth in this section; [and] 473 Substitute Bill No. 6769
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(4) The business entity has paid the license or renewal fee required 474
for a real estate broker's license as set forth in section 20-314, as amended 475
by this act; [,and (3) except for] and 476
(5) The business entity is a publicly traded corporation or, if the 477
business entity is not a publicly traded corporation: 478
(A) [with respect to a corporation other than a nonstock corporation,] 479
The business entity is a stock corporation and one or more real estate 480
brokers, who are either licensed or exempt from licensure under this 481
chapter, own or control fifty-one per cent or more of the total issued 482
shares of the corporation; [,] 483
(B) [with respect to] The business entity is a nonstock corporation [,] 484
and one or more real estate brokers, who are licensed or exempt from 485
licensure under this chapter, constitute at least fifty-one per cent of the 486
members of the nonstock corporation; [,] 487
(C) [with respect to] The business entity is a limited liability company 488
[,] and one or more real estate brokers, who are licensed or exempt from 489
licensure under this chapter, own or control at least fifty-one per cent of 490
the interest in the limited liability company, as defined in section 34-491
243a; [,] or 492
(D) [with respect to] The business entity is a partnership or limited 493
liability partnership [, one or more real estate brokers'] and the 494
partnership interest, as defined in section 34-301, of one or more real 495
estate brokers, who are licensed or exempt from licensure under this 496
chapter, constitutes at least fifty-one per cent of the total partnership 497
interest. [No such corporation, limited liability company, partnership or 498
limited liability partnership shall be relieved of responsibility for the 499
conduct or acts of its agents, employees or officers by reason of its 500
compliance with this section, nor shall any individual practicing real 501
estate brokerage be relieved of responsibility for real estate services 502
performed by reason of the individual's employment or relationship 503
with such corporation, limited liability company, partnership or limited 504 Substitute Bill No. 6769
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liability partnership. The Real Estate Commission may refuse to 505
authorize the issuance or renewal of a license if any facts exist that 506
would entitle the commission to suspend or revoke an existing license.] 507
(c) A [corporation, limited liability company, partnership or limited 508
liability partnership] business entity desiring a real estate broker license 509
shall file with the commission or the [commissioner] Commissioner of 510
Consumer Protection an application on such forms and in such manner 511
as prescribed by the [Department of Consumer Protection] department. 512
Each such [corporation, limited liability company, partnership or 513
limited liability partnership] business entity shall file with the 514
commission, [a designation of at least one individual licensed or 515
qualified to be licensed as a real estate broker in this state who shall be 516
in charge of the real estate brokerage business of such corporation, 517
limited liability company, partnership or limited liability partnership in 518
this state] in a form and manner prescribed by the department, the 519
identity of, and contact information for, at least one designated broker. 520
Such [corporation, limited liability company, partnership or limited 521
liability partnership] business entity shall notify the commission of any 522
change in [such designation] the identity of, or contact information for, 523
such designated broker not later than thirty days after such change 524
becomes effective. 525
(d) The Real Estate Commission may impose a fine of not more than 526
[one] five thousand dollars per violation on any [corporation, limited 527
liability company, partnership or limited liability partnership] person 528
that engages in the real estate business, including, but not limited to, 529
leasing or rental activity, without a license required by this section. Any 530
such imposition of a fine by the commission shall be a proposed final 531
decision and submitted to the [commissioner] Commissioner of 532
Consumer Protection in accordance with the provisions of subsection 533
(b) of section 21a-7. 534
(e) [(1) (A) Except as provided in subdivision (2) of this subsection, 535
each] Each team shall register, on a form and in a manner prescribed by 536
the [commissioner] Commissioner of Consumer Protection, with the 537 Substitute Bill No. 6769
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[Department of Consumer Protection] department. Each initial 538
registration shall be valid for a period of one year and be subject to 539
renewal for additional one-year periods. Each team shall pay to the 540
department an initial registration fee of five hundred sixty-five dollars 541
when the team files its initial registration, and a registration renewal fee 542
of three hundred seventy-five dollars when the team files each 543
registration renewal, pursuant to this subparagraph. Each team shall 544
include in each registration form that the team files with the department 545
pursuant to this [subparagraph] subsection: 546
[(i) The] (1) Such team's team name, which shall: 547
[(I)] (A) Include the full name of at least one licensed real estate 548
broker or real estate salesperson who is part of [the] such team or be 549
immediately followed by "at/of [full name of the [sponsoring real estate 550
broker] team's supervising licensee]"; 551
[(II)] (B) Not include the name of any individual who is not a licensed 552
real estate broker or real estate salesperson; and 553
[(III)] (C) With the exception of "team", not include any abbreviation, 554
term or phrase, including, but not limited to, "associates", "company", 555
"corporation", "group", "LLC", "real estate" or "realty", that implies that 556
[the] such team is a business entity; 557
[(ii)] (2) The name of, and contact information for, [the] such team's 558
[sponsoring real estate broker] supervising licensee, who shall serve as 559
[the] such team's primary contact, ensure that [the] such team complies 560
with all applicable laws and regulations concerning team 561
advertisements and ensure that [the] such team timely files accurate 562
registration forms and registration updates with the department 563
pursuant to this [subdivision] subsection; and 564
[(iii)] (3) The name and contact information for each real estate broker 565
or real estate salesperson who is part of [the] such team. 566
[(B)] (f) A team shall send notice to the department disclosing any 567 Substitute Bill No. 6769
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change to the information contained in the team's registration form. The 568
team shall send such notice to the department, on a form and in a 569
manner prescribed by the [commissioner] Commissioner of Consumer 570
Protection, not later than twelve days after the date of such change. A 571
team may transfer the team's registration from one supervising licensee 572
to another supervising licensee, without applying for a new team 573
registration, if (1) all members of such team transfer to such other 574
supervising licensee, and (2) both supervising licensees agree to such 575
transfer. 576
[(C)] (g) Each team shall comply with all advertising requirements 577
and standards that apply to real estate brokers, and shall include the 578
name of [the] such team's [sponsoring real estate broker] supervising 579
licensee at a prominent location in all of [the] such team's 580
advertisements. 581
[(2) The commissioner may, in the commissioner's discretion, engage 582
the services of such third parties that the commissioner deems necessary 583
to assist the commissioner in implementing the provisions of 584
subdivision (1) of this subsection, provided no expenditure of state 585
funds shall be made to cover the cost of hiring a consultant to make 586
programmatic changes to the licensing system.] 587
Sec. 10. Section 20-312b of the general statutes is repealed and the 588
following is substituted in lieu thereof (Effective April 1, 2024): 589
A [licensed] real estate [broker or real estate salesperson] licensee 590
shall not be considered an employee under the provisions of section 31-591
275 if substantially all of the remuneration for the services performed by 592
such [broker or salesperson] real estate licensee, whether paid in cash or 593
otherwise, is directly related to sales or other output rather than to the 594
number of hours worked, and such services are performed by the 595
[broker or salesperson] real estate licensee pursuant to a written contract 596
that contains the following provisions: 597
(1) The [broker or salesperson] real estate licensee, for purposes of 598 Substitute Bill No. 6769
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workers' compensation, is engaged as an independent contractor 599
associated with the person for whom services are performed; 600
(2) The [broker or salesperson] real estate licensee shall be paid a 601
commission based on [his] such real estate licensee's gross sales or 602
leases, if any, without deduction for taxes, which commission shall be 603
directly related to sales, leases or other output; 604
(3) The [broker or salesperson] real estate licensee shall not receive 605
any remuneration related to the number of hours worked and shall not 606
be treated as an employee with respect to such services for purposes of 607
workers' compensation; 608
(4) The [broker or salesperson] real estate licensee shall be permitted 609
to work any hours [he] such real estate licensee chooses; 610
(5) The [broker or salesperson] real estate licensee shall be permitted 611
to work out of [his] such real estate licensee's own home or the office of 612
the person for whom services are performed; 613
(6) The [broker or salesperson] real estate licensee shall be free to 614
engage in outside employment; 615
(7) The person for whom the services are performed may provide 616
office facilities and supplies for the use of the [broker or salesperson] 617
real estate licensee, but [the broker or salesperson] such real estate 618
licensee shall otherwise pay [his] such real estate licensee's own 619
expenses, including, but not limited to, automobile, travel and 620
entertainment expenses; and 621
(8) The contract may be terminated by either party to such contract at 622
any time upon notice given to the other party to such contract. 623
Sec. 11. Section 20-314 of the general statutes is repealed and the 624
following is substituted in lieu thereof (Effective April 1, 2024): 625
(a) Licenses shall be granted under this chapter only to persons who 626 Substitute Bill No. 6769
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bear a good reputation for honesty, truthfulness and fair dealing and 627
who are competent to transact the business of a leasing agent, real estate 628
broker or real estate salesperson in such manner as to safeguard the 629
interests of the public. 630
(b) Each application for a license or for a renewal thereof shall be 631
made in writing, on such forms and in such manner as is prescribed by 632
the [Department of Consumer Protection and accompanied by such 633
evidence in support of such application as is prescribed by the 634
commission. The commission may require such information with regard 635
to an applicant as the commission deems desirable, with due regard to 636
the paramount interests of the public, as to the honesty, truthfulness, 637
integrity and competency of the applicant and, where the applicant is a 638
corporation, association or partnership, as to the honesty, truthfulness, 639
integrity and competency of the officers of such corporation or the 640
members of such association or partnership] department. 641
(c) In order to determine the competency of any applicant for a real 642
estate [broker's license or a real estate salesperson's] licensee's license, 643
the commission or Commissioner of Consumer Protection shall, on 644
payment of an application fee of one hundred twenty dollars by an 645
applicant for a real estate broker's license or an application fee of eighty 646
dollars by an applicant for a leasing agent's or real estate salesperson's 647
license, subject such applicant to personal written examination as to the 648
applicant's competency to act as a leasing agent, real estate broker or 649
real estate salesperson, as the case may be. [Such] Each examination 650
shall be prepared by the [Department of Consumer Protection] 651
department or by a national testing service designated by the 652
[Commissioner of Consumer Protection] commissioner and shall be 653
administered to applicants by the [Department of Consumer Protection] 654
department or by such testing service at such times and places as the 655
commissioner may deem necessary. The commission or [Commissioner 656
of Consumer Protection] commissioner may waive the uniform portion 657
of the written examination requirement in the case of an applicant who 658
has taken the national testing service examination in another state 659 Substitute Bill No. 6769
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within two years from the date of application and has received a score 660
deemed satisfactory by the commission or [Commissioner of Consumer 661
Protection] commissioner. The [Commissioner of Consumer Protection] 662
commissioner shall adopt regulations, in accordance with chapter 54, 663
establishing passing scores for examinations. In addition to such 664
application fee, applicants taking the examination administered by a 665
national testing service shall be required to pay directly to such testing 666
service an examination fee covering the cost of such examination. Each 667
payment of such application fee shall entitle the applicant to take such 668
examination within the one-year period from the date of payment. 669
[(d) (1) (A) Each applicant applying for a real estate broker's license 670
on or after July 1, 2016, but before January 1, 2022, shall, before being 671
admitted to such examination, prove to the satisfaction of the 672
commission or the Commissioner of Consumer Protection that the 673
applicant (i) (I) has been actively engaged for at least two years as a 674
licensed real estate salesperson under the supervision of a licensed real 675
estate broker in this state, (II) has successfully completed a course 676
approved by the commission or commissioner in real estate principles 677
and practices of at least sixty classroom hours of study, (III) has 678
successfully completed a course approved by the commission or 679
commissioner in real estate legal compliance consisting of at least fifteen 680
classroom hours of study, (IV) has successfully completed a course 681
approved by the commission or commissioner in real estate brokerage 682
principles and practices consisting of at least fifteen classroom hours, 683
and (V) has successfully completed two elective courses, each consisting 684
of fifteen classroom hours of study, as prescribed by the commission or 685
commissioner, or (ii) has equivalent experience or education as 686
determined by the commission or commissioner.] 687
[(B)] (d) (1) Each applicant [applying for a real estate broker's license 688
on or after January 1, 2022,] shall, before being admitted to such 689
examination, prove to the satisfaction of the commission or the 690
Commissioner of Consumer Protection that the applicant [(i) (I)] (A) (i) 691
has been actively engaged as a licensed real estate salesperson under the 692 Substitute Bill No. 6769
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supervision of a [licensed real estate broker in this state for a] 693
supervising licensee, who is licensed in this state, for a minimum period 694
of three years immediately preceding the date the applicant filed such 695
applicant's application, during which period such salesperson engaged 696
in the real estate business for at least one thousand five hundred hours 697
[during the three years immediately preceding the date on which such 698
applicant filed such applicant's application,] and such supervising 699
[licensed real estate broker] licensee, or such supervising [licensed real 700
estate broker's] licensee's authorized representative, has certified the 701
accuracy of a record of such applicant's active engagement on a form 702
provided by such applicant to such supervising [licensed real estate 703
broker] licensee or authorized representative, [(II)] (ii) has successfully 704
completed a course approved by the commission or commissioner in 705
real estate principles and practices of at least sixty classroom hours of 706
study, [(III)] (iii) has successfully completed a course approved by the 707
commission or commissioner in real estate legal compliance consisting 708
of at least fifteen classroom hours of study, [(IV)] (iv) has successfully 709
completed a course approved by the commission or commissioner in 710
real estate brokerage principles and practices consisting of at least 711
fifteen classroom hours, [(V)] (v) has successfully completed two 712
elective courses, each consisting of fifteen classroom hours of study, as 713
prescribed by the commission or commissioner, and [(VI)] (vi) has 714
represented a seller, buyer, lessor or lessee in at least four real estate 715
transactions that closed during the three years immediately preceding 716
the date on which such applicant filed such applicant's application, or 717
[(ii)] (B) has equivalent experience or education as determined by the 718
commission or commissioner. Each supervising [licensed real estate 719
broker] licensee, or authorized representative of such supervising 720
[licensed real estate broker] licensee, shall certify the accuracy or 721
inaccuracy of a record provided by an applicant to such supervising 722
[licensed real estate broker] licensee or authorized representative under 723
subparagraph [(B)(i)(I)] (A)(i) of this subdivision not later than ninety 724
days after such applicant provides such record to such supervising 725
[licensed real estate broker] licensee or authorized representative. 726 Substitute Bill No. 6769
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(2) The commission or the [Commissioner of Consumer Protection] 727
commissioner shall waive the elective courses under subparagraph 728
[(A)(i)(V) or (B)(i)(V)] (A)(v) of subdivision (1) of this subsection if the 729
applicant has successfully completed at least twenty real estate 730
transactions within five years immediately preceding the date of 731
application. [As used in this subdivision, "real estate transaction" means 732
any transaction in which real property is legally transferred to another 733
party or in which a lease agreement is executed between a landlord and 734
a tenant.] 735
(3) Each applicant for a real estate salesperson's license shall, before 736
being admitted to such examination, prove to the satisfaction of the 737
commission or the [Commissioner of Consumer Protection ] 738
commissioner that the applicant (A) has successfully completed a course 739
approved by the commission or commissioner in real estate principles 740
and practices consisting of at least sixty classroom hours of study, or (B) 741
has equivalent experience or education as determined by the 742
commission or commissioner. 743
(4) Each applicant for a leasing agent license shall, before being 744
admitted to such examination, prove to the satisfaction of the 745
commission or the commissioner that the applicant (A) has successfully 746
completed a course or courses approved by the commission or 747
commissioner in real estate leasing, including, but not limited to, 748
training on fair housing law, landlord tenant law and security deposit 749
management, consisting of at least twenty classroom hours of study, or 750
(B) has equivalent experience or education as determined by the 751
commission or commissioner. 752
(e) The provisions of subsections (c) and (d) of this section shall not 753
apply to any renewal of a real estate broker's license, or a real estate 754
salesperson's license issued prior to October 1, 1973. 755
(f) All licenses issued under the provisions of this chapter shall expire 756
[annually] biennially. At the time of application for a real estate broker's 757
license, there shall be paid to the [commission] department, for each 758 Substitute Bill No. 6769
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individual applicant and for each [proposed active member or officer of 759
a firm, partnership, association or corporation] business entity, the sum 760
of [five hundred sixty-five] one thousand one hundred thirty dollars, 761
and for the [annual] biennial renewal thereof, the sum of [three hundred 762
seventy-five] seven hundred fifty dollars, except that for licenses 763
expiring on March 31, 2022, a prorated renewal fee shall be charged to 764
reflect the fact that the March 2022, renewal shall expire on November 765
30, 2023. At the time of application for a real estate salesperson's or 766
leasing agent's license, there shall be paid to the [commission two 767
hundred eighty-five] department five hundred seventy dollars and for 768
the [annual] biennial renewal thereof the sum of [two hundred eighty-769
five] five hundred seventy dollars. [Three] Six dollars of each such 770
[annual] biennial renewal fee shall be payable to the Real Estate 771
Guaranty Fund established pursuant to section 20-324a, as amended by 772
this act. A real estate broker's license issued to any [partnership, 773
association or corporation] business entity shall entitle the [individual 774
designated in the application, as provided in section 20-312] designated 775
broker, upon compliance with the terms of this chapter, but without the 776
payment of any further fee, to perform all of the acts of a real estate 777
broker under this chapter on behalf of such [partnership, association or 778
corporation] business entity. Any license which expires and is not 779
renewed [pursuant to this subsection] on or before the ninetieth day 780
following the expiration date of such license may be reinstated by the 781
commission [, if, not later than two years after the date of expiration, the 782
former licensee pays to the commission for] or department, in the 783
commission's or department's discretion, provided such license has 784
expired for less than three years and the former licensee (1) attests that 785
such former licensee did not work in this state in the occupation or 786
profession in which such former licensee was licensed while such 787
former licensee's license was lapsed, (2) pays the renewal fee due for 788
such license for the year in which such license is reinstated, and (3) 789
completes any continuing education required for such license for the 790
year preceding such reinstatement. If an applicant for reinstatement 791
worked in this state in the occupation or profession in which such 792
applicant was formerly licensed while such license was lapsed, the 793 Substitute Bill No. 6769
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applicant shall pay all license and late fees due and owing for the lapse 794
period and demonstrate that such applicant has completed all 795
continuing education required for such license for the year preceding 796
such reinstatement. Such late fees shall be assessed for each real estate 797
broker's license [the sum] in the amount of three hundred seventy-five 798
dollars and for each real estate salesperson's or leasing agent's license 799
[the sum] in the amount of two hundred eighty-five dollars for each year 800
or fraction thereof from the date of expiration of the previous license to 801
the date of payment for reinstatement. [, except that any] If a license has 802
lapsed for at least three years, the former licensee is ineligible for 803
reinstatement under this subsection and may apply for a new license. 804
Notwithstanding any contrary provision of this subsection, a former 805
licensee whose license expired after such former licensee entered 806
military service shall be reinstated without payment of any fee if an 807
application for reinstatement is filed with the commission [within two 808
years after the date of expiration] or department before the third 809
anniversary of such expiration date, and the former licensee provides 810
evidence that is sufficient to demonstrate to the commission or 811
department that such former licensee completed at least six hours of 812
continuing education for such license, including, but not limited to, the 813
mandatory continuing education required for such license, during the 814
calendar year preceding the date on which such application for 815
reinstatement is filed. Any such reinstated broker's license shall expire 816
on the next succeeding November thirtieth. [, except that any broker's 817
license that is reinstated before March 31, 2022, shall expire on March 818
31, 2022.] Any such reinstated real estate salesperson's license shall 819
expire on the next succeeding May thirty-first. 820
(g) [Any person whose application has been filed as provided in this 821
section and who is refused a license shall be given notice and afforded 822
an opportunity for hearing as provided in the regulations adopted by 823
the Commissioner of Consumer Protection.] Following a denial of a 824
license or license renewal application filed under this section, the 825
department shall send a notice to the applicant who filed such 826
application disclosing such denial and that such applicant may request 827 Substitute Bill No. 6769
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a hearing by submitting to the Commissioner of Consumer Protection a 828
written hearing request not later than thirty days after the date such 829
denial notice was sent to such applicant. If the applicant requests a 830
hearing during such thirty-day period, the department shall send a 831
notice to such applicant disclosing the grounds for such denial and 832
conduct a hearing concerning such denial in accordance with the 833
provisions of chapter 54. If the commissioner's denial is sustained after 834
such hearing, the applicant may file a new application for such license 835
or license renewal not sooner than one year after the date on which such 836
denial was sustained. 837
Sec. 12. Section 20-314a of the general statutes is repealed and the 838
following is substituted in lieu thereof (Effective April 1, 2024): 839
(a) The Commissioner of Consumer Protection, with the advice and 840
assistance of the commission, may adopt regulations, in accordance 841
with chapter 54, relating to the approval of schools offering prelicensing 842
and continuing education courses, [in real estate principles and practice 843
and related subjects,] the content of such courses and the advertising to 844
the public of the services [of] offered by such schools. Such regulations 845
shall not require [(1)] approval of instructors at such schools. [, or (2) a 846
course to be conducted in a classroom location approved for such use 847
by a local fire marshal provided the course is conducted in a hotel, 848
restaurant or other public building or a place of public assembly, as 849
defined in section 19-13-B105 of the regulations of Connecticut state 850
agencies.] No school may be disapproved solely because the school's 851
courses are offered or taught by electronic means, and no course may be 852
disapproved solely because the course is offered or taught by electronic 853
means if such course satisfies the requirements established in section 4 854
of this act. 855
(b) The commission or department may exempt any applicant for a 856
real estate broker's license from the requirements concerning experience 857
under the provisions of subsection (d) of section 20-314, as amended by 858
this act, if the commission or department determines that such applicant 859
is unable to meet such requirements solely because such applicant has 860 Substitute Bill No. 6769
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been subjected to discrimination based on race, creed or color, which 861
discrimination interfered with such applicant's ability to meet such 862
requirements. 863
Sec. 13. Subsections (b) and (c) of section 20-316 of the general statutes 864
are repealed and the following is substituted in lieu thereof (Effective 865
April 1, 2024): 866
(b) No license under this chapter shall be issued by the [Department 867
of Consumer Protection] department to any applicant (1) whose 868
application for a license as a real estate [broker or real estate salesperson] 869
licensee has, within one year prior to the date of [his] such applicant's 870
application under this chapter, been rejected in this state, in any other 871
state or in the District of Columbia, or (2) whose license as a real estate 872
[broker or real estate salesperson] licensee has, within one year prior to 873
the date of [his] such applicant's application under this chapter, been 874
revoked in this state, in any other state or in the District of Columbia. 875
(c) No real estate license [as a real estate broker or real estate 876
salesperson] shall be issued under this chapter to any person who [has 877
not attained the age of] is younger than eighteen years of age. 878
Sec. 14. Section 20-317 of the general statutes is repealed and the 879
following is substituted in lieu thereof (Effective April 1, 2024): 880
(a) A person licensed in another state [as a real estate broker or 881
salesperson] to engage in the real estate business may become a real 882
estate [broker or real estate salesperson] licensee in this state by 883
conforming to all of the provisions of this chapter. The commission or 884
Commissioner of Consumer Protection shall recognize a current, valid 885
license issued to a currently practicing, competent real estate [broker or 886
real estate salesperson] professional engaging in the real estate business 887
in, and recognized by, another state as satisfactorily qualifying [the 888
broker or salesperson] such real estate professional for a license as a real 889
estate [broker or real estate salesperson] licensee under this chapter, 890
provided (1) the laws of the state in which [the broker or salesperson] 891 Substitute Bill No. 6769
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such real estate professional is licensed require that applicants for 892
licenses as real estate [brokers and real estate salespersons] licensees 893
establish their competency by written examinations, [and allow licenses 894
to be issued to residents of the state of Connecticut, licensed under this 895
chapter, without examination,] (2) the licensure requirements of such 896
state are substantially similar to or higher than those of this state, and 897
(3) [the broker or salesperson] such real estate professional has no 898
disciplinary proceeding or unresolved complaint pending against [the 899
broker or salesperson] such real estate professional. If [the] an applicant 900
real estate professional is licensed in a state that does not have such 901
requirements, such applicant real estate professional shall be required 902
to pass the Connecticut portion of the real estate examination. 903
(b) [Every applicant licensed in another state shall file an irrevocable 904
consent that suits and actions may be commenced against such 905
applicant in the proper court in any judicial district of the state in which 906
a cause of action may arise or in which the plaintiff may reside, by the 907
service of any process or pleading, authorized by the laws of this state, 908
on the chairperson of the commission, such consent stipulating and 909
agreeing that such service of such process or pleading shall be taken and 910
held in all courts to be as valid and binding as if service had been made 911
upon such applicant in the state of Connecticut. If any process or 912
pleadings under this chapter are served upon the chairperson, it shall 913
be by duplicate copies, one of which shall be filed in the office of the 914
commission, and the other immediately forwarded by registered or 915
certified mail, to the applicant against whom such process or pleadings 916
are directed, at the last-known address of such applicant as shown by 917
the records of the department. No default in any such proceedings or 918
action shall be taken unless it appears by affidavit of the chairperson of 919
the commission that a copy of the process or pleading was mailed to the 920
defendant as required by this subsection, and no judgment by default 921
shall be taken in any such action or proceeding within twenty days after 922
the date of mailing of such process or pleading to the out-of-state 923
defendant.] A real estate professional who satisfies the requirements 924
established in subsection (a) of this section may apply for licensure in 925 Substitute Bill No. 6769
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this state as set forth in section 21a-11b. 926
Sec. 15. Section 20-319 of the general statutes is repealed and the 927
following is substituted in lieu thereof (Effective April 1, 2024): 928
(a) The commission shall authorize the [Department of Consumer 929
Protection] department to issue [an annual] a two-year renewal license 930
to any applicant who possesses the qualifications specified in, and 931
[otherwise] has otherwise complied with the provisions of, this chapter 932
and any regulation adopted [under] pursuant to this chapter. The 933
commission shall authorize [said] the department to issue [an annual] a 934
two-year renewal of a real estate broker's license to any business entity 935
licensed pursuant to subsection (b) of section 20-312, as amended by this 936
act, provided such business entity: (1) Was so licensed as of September 937
30, 2005, notwithstanding the fact such business entity does not meet the 938
requirements for publicly traded corporations required by subdivision 939
[(3)] (5) of subsection (b) of section 20-312, as amended by this act, or (2) 940
changes [its] such business entity's designated [real estate] broker 941
pursuant to subsection (c) of section 20-312, as amended by this act. 942
(b) There [is] are hereby established [an annual] two-year renewal 943
[license] licenses to be issued by the [Department of Consumer 944
Protection. Persons licensed in accordance with the provisions of this 945
chapter] department to real estate licensees. Each real estate licensee 946
who files an application with the department seeking a two-year 947
renewal license shall fulfill a continuing education requirement. 948
[Applicants] Each applicant for [an annual] a two-year renewal license 949
[for real estate brokers or real estate salespersons] shall, in addition to 950
the other requirements imposed by the provisions of this chapter, [in 951
any even-numbered year,] submit to the commission or department 952
proof [of] that such applicant is in compliance with the continuing 953
education requirements [of] established in this [subsection to the 954
commission. Each] section. Each real estate licensee shall pay [an annual 955
four-dollar] a biennial eight-dollar continuing education processing fee 956
to cover the administrative costs associated with [the review] reviewing 957
and auditing [of] continuing education submissions. The continuing 958 Substitute Bill No. 6769
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education requirement for real estate licensees, other than leasing 959
agents, may be satisfied by successful completion of any of the following 960
during the two-year period preceding [such] a renewal: (1) A course or 961
courses, approved by the commission or department, of continuing 962
education in current real estate practices and licensing laws, including, 963
but not limited to, practices and laws concerning common interest 964
communities, consisting of not less than twelve hours of classroom 965
study; or (2) a written examination prepared and administered by either 966
the [Department of Consumer Protection] department, or by a national 967
testing service approved by the department, which demonstrates a 968
knowledge of current real estate practices and licensing laws; or (3) 969
equivalent continuing educational experience or study as determined 970
by regulations adopted pursuant to subsection (d) of this section. An 971
applicant for examination under subdivision (2) of this subsection shall 972
pay the required examination fee to the national testing service, if 973
administered by such testing service, or to the [Department of 974
Consumer Protection] department, if administered by the department. 975
In order to receive a two-year renewal license under this section, a 976
leasing agent shall complete at least four hours of continuing education 977
during the two-year period beginning twenty-seven months before the 978
renewal date and ending three months before the renewal date, and at 979
least one hour of such continuing education shall address fair housing 980
law. 981
(c) If the commission or department refuses to grant [an annual] a 982
two-year renewal license, the licensee or applicant, upon written notice 983
received as provided for in this chapter, may have recourse to any of the 984
remedies provided by sections 20-314, as amended by this act, and 20-985
322. 986
(d) The Commissioner of Consumer Protection, in consultation with 987
the commission, shall adopt regulations, in accordance with chapter 54, 988
[concerning the approval of schools, institutions or organizations 989
offering courses in current real estate practices and licensing laws, 990
including, but not limited to, practices and laws concerning common 991 Substitute Bill No. 6769
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interest communities, and the content of such courses] to establish 992
continuing education requirements. Such regulations shall include, but 993
not be limited to: (1) Specifications for meeting equivalent continuing 994
educational experience or study; and (2) exceptions from continuous 995
education requirements for reasons of health or instances of individual 996
hardship. [No school, institution or organization that offers a course in 997
current real estate practices and licensing laws may be disapproved 998
solely because its courses are offered or taught by electronic means, and 999
no course may be disapproved solely because it is offered or taught by 1000
electronic means.] 1001
(e) If a real estate licensee fails to satisfy the continuing education 1002
requirements established pursuant to this section for any two-year 1003
license period, the real estate licensee shall pay to the department a fee 1004
in the amount of: 1005
(1) Three hundred fifteen dollars if such licensee reports to the 1006
department, in a form and manner prescribed by the department, that 1007
such real estate licensee failed to satisfy such continuing education 1008
requirements during such license period but completed such continuing 1009
education requirements not later than two months after such license 1010
period expired; or 1011
(2) Six hundred twenty-five dollars if such licensee reports to the 1012
department, in a form and manner prescribed by the department, that 1013
such real estate licensee failed to satisfy such continuing education 1014
requirements during such license period but completed such continuing 1015
education requirements more than two months after such license period 1016
expired but not later than four months after such license period expired. 1017
Sec. 16. Section 20-319a of the general statutes is repealed and the 1018
following is substituted in lieu thereof (Effective April 1, 2024): 1019
(a) [Any] Each licensed real estate salesperson, associate broker or 1020
leasing agent who transfers [his employment from one broker to another 1021
or his] such real estate salesperson's, associate broker's or leasing agent's 1022 Substitute Bill No. 6769
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affiliation with a broker [as an independent contractor] or property 1023
owner shall register such transfer with, and pay a registration fee of 1024
twenty-five dollars to, the [commission] department. 1025
(b) A fee of twenty-five dollars shall be paid to the [commission] 1026
department for the issuance of a license certification. 1027
(c) A fee of twenty-five dollars shall be paid to the [Department of 1028
Consumer Protection] department for any change made to, or transfer 1029
of, a team's registration after the team files an initial registration with 1030
the department pursuant to [subdivision (1) of] subsection (e) of section 1031
20-312, as amended by this act. 1032
(d) If a team transfers to a new supervising licensee, the new 1033
supervising licensee shall electronically update the team's registration 1034
information with the department not later than fourteen calendar days 1035
after such transfer. 1036
Sec. 17. Section 20-320 of the general statutes is repealed and the 1037
following is substituted in lieu thereof (Effective April 1, 2024): 1038
(a) The [Department of Consumer Protection] department may [, 1039
upon the request of the commission or upon the verified complaint in 1040
writing of any person, if such complaint, or such complaint together 1041
with evidence, documentary or otherwise, presented in connection with 1042
such complaint, shall make out a prima facie case,] investigate the 1043
actions of any [real estate broker or real estate salesperson or any person 1044
who assumes to act in any of such capacities] person who engages in the 1045
real estate business or offers real estate courses within this state. The 1046
commission or department may temporarily suspend or permanently 1047
revoke any license or registration issued under the provisions of this 1048
chapter and, in addition to or in lieu of such suspension or revocation, 1049
may, in [its] the commission's or department's discretion, impose a fine 1050
of not more than [two] five thousand dollars per violation at any time 1051
when, after proceedings as provided in section 20-321, the commission 1052
or department finds that the real estate licensee has by false or 1053 Substitute Bill No. 6769
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fraudulent misrepresentation obtained a license or registration or that 1054
the real estate licensee [is guilty of any of the following] has: (1) 1055
[Making] Made any material misrepresentation; (2) [making] made any 1056
false promise of a character likely to influence, persuade or induce; (3) 1057
[acting] acted as an agent for more than one party in a transaction 1058
without the knowledge of all parties for whom the real estate licensee 1059
[acts] acted; (4) [representing or attempting] represented, or attempted 1060
to represent, a real estate broker, other than the real estate licensee's 1061
[employer or the broker with whom the licensee is affiliated] affiliated 1062
or supervising licensee, without the express knowledge and consent of 1063
[the] such real estate licensee's [employer or] affiliated [broker] or 1064
supervising licensee; (5) [failing] failed, within a reasonable time, to 1065
account for or remit any moneys [coming] which came into the real 1066
estate licensee's possession and which belong to others; (6) [entering] 1067
entered into an exclusive listing contract or buyer agency contract which 1068
contains a fixed termination date if such contract also provides for an 1069
automatic continuation of the period of such contract beyond such date; 1070
(7) [failing] failed to deliver immediately a copy of any instrument to 1071
any party or parties executing [the] such instrument, where such 1072
instrument has been prepared by the real estate licensee or under [the] 1073
such real estate licensee's supervision and where such instrument 1074
relates to the employment of [the] such real estate licensee or to any 1075
matters pertaining to the consummation of a lease, or the purchase, sale 1076
or exchange of real property or any other type of real estate transaction 1077
in which [the] such real estate licensee may participate as a [broker or a 1078
salesperson] real estate licensee; (8) [conviction] been convicted, in a 1079
court of competent jurisdiction, of forgery, embezzlement, obtaining 1080
money under false pretenses, larceny, extortion, conspiracy to defraud 1081
[,or other like] or a similar offense, [or offenses,] provided suspension 1082
or revocation under this subdivision shall be subject to the provisions of 1083
section 46a-80; (9) [collecting] collected compensation or a commission 1084
in advance of services to be performed and [failing] failed, upon 1085
demand of the person [paying the] who paid such compensation or [the] 1086
commission, to render an accounting of the use of such [money] 1087
compensation or commission; (10) [commingling] commingled funds of 1088 Substitute Bill No. 6769
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others with the real estate licensee's own funds, or [failing] failed to keep 1089
funds of others in an escrow or [trustee] trust account; (11) engaged in 1090
any act or conduct which constitutes dishonest, fraudulent or improper 1091
dealings; (12) [failing] failed to provide the disclosures required by 1092
section 20-325c, [;] as amended by this act; or (13) [a violation of] violated 1093
any provision of this chapter or any regulation adopted under this 1094
chapter. [Any such suspension or revocation of a license or imposition 1095
of a fine by the commission shall be a proposed final decision and 1096
submitted to the commissioner in accordance with the provisions of 1097
subsection (b) of section 21a-7.] Any fine collected pursuant to this 1098
section shall be deposited in the Real Estate Guaranty Fund established 1099
pursuant to section 20-324a, as amended by this act. 1100
(b) No person shall be relieved of responsibility for the conduct or 1101
actions of such person's agents, employees or officers by reason of such 1102
person's compliance with the provisions of this chapter. No person who 1103
engages in the real estate business shall be relieved of responsibility for 1104
such person's own conduct or actions by reason of such person's 1105
employment by, or association with, any real estate licensee or 1106
development owner. 1107
Sec. 18. Section 20-320a of the general statutes is repealed and the 1108
following is substituted in lieu thereof (Effective April 1, 2024): 1109
[(a)] No real estate [broker or real estate salesperson] licensee, no 1110
person affiliated with [such broker or salesperson] a real estate licensee, 1111
and no person engaging in the real estate business may receive a fee, 1112
commission or other form of referral fee for the referral of any buyer of 1113
real property to (1) an attorney-at-law admitted to practice in this state 1114
or any person affiliated with such attorney or (2) any mortgage broker, 1115
any lender, as defined in subdivision (5) of section 49-31d, or any person 1116
affiliated with such mortgage broker or lender. 1117
[(b) The Department of Consumer Protection may, upon the request 1118
of the commission or upon the verified complaint in writing of any 1119
person, if such complaint, or such complaint together with evidence, 1120 Substitute Bill No. 6769
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documentary or otherwise, presented in connection with such 1121
complaint, shall make out a prima facie case, investigate the actions of 1122
any real estate broker or real estate salesperson or any person who 1123
assumes to act in any of such capacities within this state. The 1124
commission may temporarily suspend or permanently revoke any 1125
license issued under the provisions of this chapter, and, in addition to 1126
or in lieu of such suspension or revocation, may, in its discretion, impose 1127
a fine of not more than one thousand dollars for the first offense at any 1128
time when, after proceedings as provided in section 20-321, the 1129
commission finds that the licensee is guilty of violating any of the 1130
provisions of subsection (a) of this section. Any such suspension or 1131
revocation of a license or imposition of a fine by the commission shall 1132
be a proposed final decision and submitted to the commissioner in 1133
accordance with the provisions of subsection (b) of section 21a-7.] 1134
Sec. 19. Subsection (a) of section 20-320b of the general statutes is 1135
repealed and the following is substituted in lieu thereof (Effective April 1136
1, 2024): 1137
(a) A real estate [broker or real estate salesperson licensed under this 1138
chapter] licensee shall not influence residential real estate appraisals. 1139
[For the purposes of this section, "influence residential real estate 1140
appraisals" includes, but is not limited to, refusal or intentional failure 1141
to refer a homebuyer, or encouraging other real estate brokers or real 1142
estate salespersons not to refer a homebuyer, to a mortgage broker, as 1143
defined in section 36a-760, or a lender, as defined in section 36a-760, 1144
based solely on the fact that the mortgage broker or lender uses an 1145
appraiser who has provided an appraisal reflecting a fair market value 1146
estimate that was less than the sale contract price.] 1147
Sec. 20. Section 20-323 of the general statutes is repealed and the 1148
following is substituted in lieu thereof (Effective April 1, 2024): 1149
Any real estate licensee under this chapter who is convicted of a 1150
violation of any of the offenses enumerated in subdivision (8) of 1151
subsection (a) of section 20-320, as amended by this act, may incur a 1152 Substitute Bill No. 6769
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forfeiture of [his or her] such real estate licensee's license and all moneys 1153
that may have been paid for such license. The clerk of any court in which 1154
such conviction has been rendered shall forward to the commission 1155
without charge a certified copy of such conviction. The [commissioner] 1156
Commissioner of Consumer Protection may revoke such licensee's 1157
license after proceedings as provided in section 20-321. Such notice shall 1158
be conclusive of the revocation of such license. Application for 1159
reinstatement of such license shall be subject to the provisions of section 1160
46a-80. 1161
Sec. 21. Section 20-324a of the general statutes is repealed and the 1162
following is substituted in lieu thereof (Effective April 1, 2024): 1163
The commission shall establish and maintain a Real Estate Guaranty 1164
Fund from which, subject to the provisions of this section and sections 1165
[20-324a] 20-324b to [20-324j] 20-324i, inclusive, as amended by this act, 1166
any person aggrieved by any action of a real estate [broker or real estate 1167
salesperson] licensee, duly licensed in this state under section 20-312, as 1168
amended by this act, by reason of the embezzlement of money or 1169
property, or money or property unlawfully obtained from any person 1170
by false pretenses, artifice or forgery or by reason of any fraud, 1171
misrepresentation or deceit by or on the part of any such real estate 1172
[broker or real estate salesperson] licensee or the unlicensed employee 1173
of any such real estate [broker] licensee, may recover, upon approval by 1174
the commission of an application brought pursuant to the provisions of 1175
section 20-324e, as amended by this act, compensation in an amount not 1176
exceeding in the aggregate the sum of twenty-five thousand dollars in 1177
connection with any one real estate transaction or claim, regardless of 1178
the number of persons aggrieved or parcels of real estate involved in 1179
such real estate transaction or claim. 1180
Sec. 22. Section 20-324b of the general statutes is repealed and the 1181
following is substituted in lieu thereof (Effective April 1, 2024): 1182
[Any person who receives a real estate broker's or real estate 1183
salesperson's license under this chapter for the first time shall] Each real 1184 Substitute Bill No. 6769
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estate licensee shall, upon application for a license under this chapter, 1185
pay an additional one-time fee of twenty dollars in addition to all other 1186
fees payable, which additional fee shall be credited to the Real Estate 1187
Guaranty Fund. The Real Estate Guaranty Fund shall also be credited as 1188
provided in sections 20-314, as amended by this act, and 20-320, as 1189
amended by this act. 1190
Sec. 23. Section 20-324d of the general statutes is repealed and the 1191
following is substituted in lieu thereof (Effective April 1, 2024): 1192
No application to recover compensation under sections 20-324a to 1193
[20-324j] 20-324i, inclusive, as amended by this act, which might 1194
subsequently result in an order for collection from the Real Estate 1195
Guaranty Fund shall be brought later than two years from the final 1196
determination of, or expiration of time for appeal in connection with, 1197
any judgment. 1198
Sec. 24. Subsections (a) to (f), inclusive, of section 20-324e of the 1199
general statutes are repealed and the following is substituted in lieu 1200
thereof (Effective April 1, 2024): 1201
(a) When any aggrieved person commences any action for a 1202
judgment which may result in collection from the Real Estate Guaranty 1203
Fund, the aggrieved person shall notify the commission or department 1204
in writing to this effect at the time of the commencement of such action. 1205
Such written notice shall toll the time for making application to the 1206
commission pursuant to section 20-324d, as amended by this act. The 1207
commission or department shall have the right to enter an appearance, 1208
intervene in or defend any such action and may waive the required 1209
written notice for good cause shown. 1210
(b) When any aggrieved person recovers a valid judgment in the 1211
Superior Court against any real estate [broker or real estate salesperson] 1212
licensee or the unlicensed employee of any such real estate [broker] 1213
licensee for loss or damages sustained by reason of the embezzlement 1214
of money or property, or money or property unlawfully obtained from 1215 Substitute Bill No. 6769
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any person by false pretenses, artifice or forgery or by reason of any 1216
fraud, misrepresentation or deceit by or on the part of such real estate 1217
[broker or salesperson] licensee or the unlicensed employee of any such 1218
real estate broker, such aggrieved person may upon the final 1219
determination of, or expiration of time for appeal in connection with, 1220
any judgment, apply to the commission for an order directing payment 1221
out of the Real Estate Guaranty Fund of the amount unpaid upon the 1222
judgment, subject to the limitations stated in section 20-324a, as 1223
amended by this act, and the limitations specified in this section. 1224
(c) The commission shall proceed upon such application in a 1225
summary manner, and, upon the hearing thereof, the aggrieved person 1226
shall be required to show that: (1) [He] Such aggrieved person is not a 1227
spouse of the debtor or the personal representative of such spouse; (2) 1228
[he] such aggrieved person has complied with all the requirements of 1229
this section; (3) [he] such aggrieved person has obtained a judgment as 1230
provided in subsection (b) of this section, stating the amount thereof and 1231
the amount owing thereon at the date of the application; (4) [he] such 1232
aggrieved person has caused to be issued a writ of execution upon the 1233
judgment and the officer executing the same has made a return showing 1234
that no personal or real property of the judgment debtor liable to be 1235
levied upon in satisfaction of the judgment could be found, or that the 1236
amount realized on the sale of them or of such of them as were found, 1237
under the execution, was insufficient to satisfy the judgment, stating the 1238
amount so realized and the balance remaining due on the judgment 1239
after application thereon of the amount realized; (5) [he] such aggrieved 1240
person has made all reasonable searches and inquiries to ascertain 1241
whether the judgment debtor possesses real or personal property or 1242
other assets, liable to be sold or applied in satisfaction of the judgment; 1243
and (6) that by such search [he] such aggrieved person has discovered 1244
no personal or real property or other assets liable to be sold or applied, 1245
or that [he] such aggrieved person has discovered certain of them, 1246
describing them, owned by the judgment debtor and liable to be so 1247
applied, and that [he] such aggrieved person has taken all necessary 1248
action and proceedings for the realization thereof, and that the amount 1249 Substitute Bill No. 6769
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thereby realized was insufficient to satisfy the judgment, stating the 1250
amount so realized and the balance remaining due on the judgment 1251
after application of the amount realized. 1252
(d) Whenever the aggrieved person satisfies the commission that it is 1253
not practicable to comply with one or more of the requirements 1254
enumerated in subdivisions (4), (5) and (6) of subsection (c) of this 1255
section and that [the] such aggrieved person has taken all reasonable 1256
steps to collect the amount of the judgment or the unsatisfied part 1257
thereof and has been unable to collect the same, the commission may in 1258
its discretion waive such requirements. 1259
(e) The commission shall order payment from the Real Estate 1260
Guaranty Fund of any sum it shall find to be payable upon the claim, 1261
pursuant to the provisions of and in accordance with the limitations 1262
contained in this section and section 20-324a, as amended by this act, if 1263
the commission is satisfied, upon the hearing, of the truth of all matters 1264
required to be shown by the aggrieved person by subsection (c) of this 1265
section and that [the] such aggrieved person has fully pursued and 1266
exhausted all remedies available to [him] such aggrieved person for 1267
recovering the amount awarded by the judgment of the court. 1268
(f) If the commission pays from the Real Estate Guaranty Fund any 1269
amount in settlement of a claim or toward satisfaction of a judgment 1270
against a [licensed real estate broker or real estate salesperson] real 1271
estate licensee pursuant to an order under subsection (e) of this section, 1272
such [broker or salesperson] real estate licensee shall not be eligible to 1273
receive a new license until [he] such real estate licensee has repaid in 1274
full, plus interest at a rate to be determined by the commission and 1275
which shall reflect current market rates, the amount paid from the fund 1276
on [his] such real estate licensee's account. A discharge in bankruptcy 1277
shall not relieve a person from the penalties and disabilities provided in 1278
this subsection. 1279
Sec. 25. Section 20-324i of the general statutes is repealed and the 1280
following is substituted in lieu thereof (Effective April 1, 2024): 1281 Substitute Bill No. 6769
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The Commissioner of Consumer Protection, with the advice and 1282
assistance of the commission, may adopt regulations, in accordance 1283
with chapter 54, to carry out the provisions of sections 20-324a to [20-1284
324j] 20-324h, inclusive, as amended by this act. 1285
Sec. 26. Section 20-325 of the general statutes is repealed and the 1286
following is substituted in lieu thereof (Effective April 1, 2024): 1287
Any person who engages in the real estate business [of a real estate 1288
broker or real estate salesperson] without obtaining a license as 1289
provided in this chapter shall be fined not more than one thousand 1290
dollars per violation or imprisoned not more than six months or both, 1291
and shall be ineligible to obtain a license for one year from the date of 1292
conviction of such offense, except that the commission or Commissioner 1293
of Consumer Protection may grant a license to such person within such 1294
one-year period upon application and after a hearing on such 1295
application. 1296
Sec. 27. Subsection (a) of section 20-325a of the general statutes is 1297
repealed and the following is substituted in lieu thereof (Effective April 1298
1, 2024): 1299
(a) [No] Except for an out-of-state real estate licensee who is an 1300
individual and seeking to recover agreed compensation authorized 1301
under subsection (e) of section 20-325l, as amended by this act, no 1302
person who is not licensed under the provisions of this chapter, and who 1303
was not so licensed at the time the person performed the acts or 1304
rendered the services for which recovery is sought, shall commence or 1305
bring any action in any court of this state, after October 1, 1971, to 1306
recover any commission, compensation or other payment with respect 1307
to any act done or service rendered by the person, the doing or 1308
rendering of which is prohibited under the provisions of this chapter 1309
except by persons duly licensed under this chapter. 1310
Sec. 28. Section 20-325c of the general statutes is repealed and the 1311
following is substituted in lieu thereof (Effective April 1, 2024): 1312 Substitute Bill No. 6769
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[(a) As used in this section "residential real property" means one to 1313
four-family residential real estate located in this state.] 1314
[(b)] (a) Notwithstanding any provision of the general statutes, [to the 1315
contrary,] no real estate [broker or real estate salesperson] licensee, other 1316
than a leasing agent, and no person affiliated with such [broker or 1317
salesperson] real estate licensee, who receives a fee, commission or other 1318
valuable consideration for the sale of residential real property, may 1319
receive a fee, commission or other valuable consideration for 1320
negotiating, soliciting, arranging, placing or finding a first mortgage 1321
loan for the buyer in connection with the same sale unless disclosure is 1322
made in accordance with the provisions of subsection [(c)] (b) of this 1323
section. Any fee, commission or other valuable consideration received 1324
by such [broker or salesperson] real estate licensee for negotiating, 1325
soliciting, arranging, placing or finding a first mortgage loan shall (1) be 1326
related to the services actually performed, as determined by the Banking 1327
Commissioner by regulations adopted pursuant to chapter 54, (2) not be 1328
imposed for the referral of the buyer to the mortgage lender by such 1329
[broker or salesperson] real estate licensee, and (3) be paid directly to 1330
[the broker or salesperson] such real estate licensee by the buyer rather 1331
than from the mortgage loan proceeds at the time of closing. 1332
[(c)] (b) Any disclosure made pursuant to subsection [(b)] (a) of this 1333
section shall be made to and acknowledged by the buyer prior to the 1334
time the buyer signs a contract with the real estate [broker or 1335
salesperson] licensee for mortgage brokering services. Such disclosure 1336
shall include the following notice printed in at least ten-point boldface 1337
capital letters: 1338
I UNDERSTAND THAT THE REAL ESTATE BROKER OR 1339
SALESPERSON IN THIS TRANSACTION HAS OFFERED TO ASSIST 1340
ME IN FINDING A MORTGAGE LOAN. ADDITIONALLY, I 1341
UNDERSTAND THAT THIS REAL ESTATE BROKER OR 1342
SALESPERSON DOES NOT REPRESENT ANY PARTICULAR 1343
MORTGAGE LENDER AND WILL ATTEMPT TO OBTAIN THE BEST 1344
TERMS AVAILABLE WITHIN THE MORTGAGE LOAN MARKET 1345 Substitute Bill No. 6769
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FOR MY SPECIFIC HOME FINANCING NEEDS. IF THE REAL 1346
ESTATE BROKER OR SALESPERSON DOES NOT FULFILL HIS 1347
FIDUCIARY OBLIGATION I MAY FILE A COMPLAINT WITH THE 1348
DEPARTMENT OF BANKING. I ALSO UNDERSTAND THAT I MAY 1349
ATTEMPT TO FIND A MORTGAGE LOAN TO FINANCE THE 1350
PURCHASE OF MY HOME WITHOUT THE ASSISTANCE OF THE 1351
REAL ESTATE BROKER OR SALESPERSON IN WHICH CASE I WILL 1352
NOT BE OBLIGATED TO PAY A FEE TO THE REAL ESTATE BROKER 1353
OR SALESPERSON. 1354
[(d)] (c) No mortgage lender may refuse to close a mortgage loan 1355
secured by residential real property because the buyer has not paid a 1356
fee, commission or other valuable consideration to a real estate [broker 1357
or salesperson] licensee for negotiating, soliciting, arranging, placing or 1358
finding the first mortgage loan. 1359
Sec. 29. Section 20-325d of the general statutes is repealed and the 1360
following is substituted in lieu thereof (Effective April 1, 2024): 1361
(a) [On and after January 1, 2018, a real estate broker or real estate 1362
salesperson licensed under this chapter] A real estate licensee who 1363
represents a seller, lessor, prospective purchaser or lessee in a real estate 1364
transaction shall, upon request, disclose [,] in writing [,] the identity of 1365
[his or her] the real estate licensee's client to any party to the transaction 1366
who is not represented by another real estate [broker or real estate 1367
salesperson licensed under this chapter. The real estate broker or real 1368
estate salesperson shall make the disclosure required under this section: 1369
(1) If the transaction concerns residential real property, as defined in 1370
section 20-325c, (A) at the beginning of the first personal meeting 1371
concerning the prospective purchaser's or lessee's specific needs in the 1372
transaction, or (B) at the beginning of the first personal meeting with the 1373
seller or lessor concerning the seller's or lessor's real property; or (2) if 1374
the transaction is a commercial real estate transaction, as defined in 1375
section 20-311, before the prospective purchaser or lessee signs the 1376
purchase contract or lease. Such disclosure shall be signed by a 1377
prospective purchaser or lessee and attached to any offer or agreement 1378 Substitute Bill No. 6769
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to purchase or lease signed by a prospective purchaser or lessee] 1379
licensee. 1380
(b) Not later than the first personal meeting, a real estate licensee 1381
shall: (1) Disclose in writing to a prospective party (A) the types of 1382
agency relationships available to the prospective party, and (B) that the 1383
prospective party should not share confidential information with the 1384
real estate licensee until such prospective party has entered into a 1385
written representation agreement with such real estate licensee; and (2) 1386
for residential real estate transactions, provide to a prospective party 1387
information on fair housing discrimination, including a description of 1388
federal and state fair housing laws, protected classes, where to obtain 1389
additional information and available resources. The disclosures 1390
required pursuant to this subsection may be delivered electronically to 1391
the prospective party. 1392
(c) The Commissioner of Consumer Protection shall adopt such 1393
regulations, in accordance with chapter 54, as the commissioner deems 1394
necessary to carry out the provisions of this section. 1395
Sec. 30. Section 20-325f of the general statutes is repealed and the 1396
following is substituted in lieu thereof (Effective April 1, 2024): 1397
No real estate broker shall make any unilateral offer of subagency or 1398
agree to compensate, appoint, employ, cooperate with or otherwise 1399
affiliate with a subagent for the sale or purchase of real property. 1400
[without the informed written consent of the person whom the real 1401
estate broker represents. Such written consent shall contain the name 1402
and real estate license number of the real estate broker to be appointed 1403
as the subagent and shall contain a statement notifying the person 1404
whom the real estate broker represents that the law imposes vicarious 1405
liability on the principal for the acts of the subagent.] 1406
Sec. 31. Section 20-325h of the general statutes is repealed and the 1407
following is substituted in lieu thereof (Effective April 1, 2024): 1408
[(a)] No real estate licensee shall: (1) Reveal any confidential 1409 Substitute Bill No. 6769
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information concerning a prospective party or a person whom the real 1410
estate licensee represented either as an agent, designated buyer agent or 1411
[a] designated seller agent; (2) use any confidential information 1412
concerning [that] such prospective party or person to [the] such 1413
prospective party's or person's disadvantage; or (3) use any confidential 1414
information concerning [that] such prospective party or person for [the] 1415
such real estate [broker's or real estate salesperson's] licensee's 1416
advantage or the advantage of a third party, except (A) as required by 1417
legal process, (B) as necessary to defend [the] such real estate [broker or 1418
real estate salesperson] licensee from allegations of wrongful or 1419
negligent conduct, or (C) as necessary to prevent the commission of a 1420
crime. 1421
[(b) As used in this section, "confidential information" means facts 1422
concerning a person's assets, liabilities, income, expenses, motivations 1423
to purchase, rent or sell real property and previous offers received or 1424
made to purchase or lease real property which are not authorized by the 1425
client, a matter of general knowledge, part of a public record or file to 1426
which access is authorized pursuant to section 1-210 or otherwise 1427
subject to disclosure under any other provision of the general statutes 1428
or any regulation of Connecticut state agencies.] 1429
Sec. 32. Section 20-325l of the general statutes is repealed and the 1430
following is substituted in lieu thereof (Effective April 1, 2024): 1431
[(a) As used in this section: (1) "Licensed broker" means a person 1432
licensed under this chapter as a real estate broker, (2) "licensed 1433
salesperson" means a person licensed under this chapter as a real estate 1434
salesperson, (3) "out-of-state broker" means a person licensed in another 1435
state as a real estate broker who is not licensed as a real estate broker 1436
under this chapter, (4) "out-of-state salesperson" means a person 1437
licensed in another state as a real estate salesperson who is not licensed 1438
as a real estate salesperson under this chapter, (5) "person" means a 1439
person, as defined in section 20-311, and (6) "advertising" means 1440
advertising, as defined in section 20-329a.] 1441 Substitute Bill No. 6769
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[(b)] (a) An out-of-state broker may perform acts with respect to a 1442
commercial real estate transaction that require a license under this 1443
chapter, provided the out-of-state broker: [complies with the laws of this 1444
state with respect to the transaction and:] 1445
(1) Works in cooperation with a licensed broker, whether in a 1446
cobrokerage, referral or other cooperative agreement or arrangement; 1447
(2) Enters into a written agreement with a licensed broker that 1448
includes the terms of cooperation and any compensation to be paid by 1449
the licensed broker and a statement that the out-of-state broker and the 1450
out-of-state broker's agents will comply with the laws of this state; 1451
(3) Provides the licensed broker a copy of the out-of-state broker's 1452
license or other proof of licensure from the [jurisdictions] states where 1453
the out-of-state broker maintains a license as a real estate broker; [and] 1454
(4) Deposits all escrow funds, security deposits, and other money 1455
received pursuant to the commercial real estate transaction to be held as 1456
provided in section 20-324k unless the agreement required in 1457
subdivision (2) of this subsection specifies otherwise; [.] 1458
(5) Complies with the laws of this state with respect to the transaction; 1459
and 1460
(6) Is credentialled as a real estate broker in another state. 1461
[(c)] (b) An out-of-state salesperson may perform acts with respect to 1462
a commercial real estate transaction that require a license as a real estate 1463
salesperson under this chapter, provided the out-of-state salesperson 1464
complies with the laws of this state with respect to the transaction and: 1465
(1) Works under the direct supervision of an out-of-state broker who 1466
meets the requirements set forth in [subdivision (1)] subdivisions (1), (5) 1467
and (6) of subsection [(b)] (a) of this section; and 1468
(2) Provides the licensed broker who is working in cooperation with 1469 Substitute Bill No. 6769
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the out-of-state broker a copy of the out-of-state salesperson's license or 1470
other proof of licensure from the [jurisdictions] states where the out-of-1471
state salesperson maintains a license as a real estate salesperson. 1472
[(d)] (c) Any out-of-state broker or out-of-state salesperson licensed 1473
in a state that has no distinction between a real estate broker license and 1474
a real estate salesperson license shall be subject to the requirements of 1475
subsection [(b)] (a) of this section with regard to any commercial real 1476
estate transaction in this state. 1477
[(e)] (d) Each out-of-state broker or out-of-state salesperson that 1478
advertises for sale commercial real estate pursuant to this section shall 1479
include in any advertising material the name of the licensed broker with 1480
whom the out-of-state broker has a written agreement pursuant to 1481
subdivision (2) of subsection [(b)] (a) of this section. Nothing in this 1482
section shall permit an out-of-state broker or out-of-state salesperson to 1483
accompany a prospective buyer at the site of commercial real estate 1484
pursuant to a real estate transaction in this state. 1485
(e) An out-of-state real estate licensee, other than an out-of-state 1486
leasing agent, may receive compensation for referring to a real estate 1487
licensee in this state a prospective party to a real estate transaction in 1488
this state. 1489
Sec. 33. Section 20-325m of the general statutes is repealed and the 1490
following is substituted in lieu thereof (Effective April 1, 2024): 1491
(a) Any real estate broker licensed under the provisions of this 1492
chapter who engages in the real estate business [, as defined in section 1493
20-311,] shall retain the following records for a period of not less than 1494
seven years after any real estate transaction closes, all funds held in 1495
escrow for such transaction are disbursed or the listing agreement or 1496
buyer or tenant representation agreement expires, whichever occurs 1497
later: (1) All purchase contracts, leases, options, written offers or 1498
counteroffers drafted by such broker or on behalf of such broker; (2) the 1499
listing agreement or buyer or tenant representation agreement, any 1500 Substitute Bill No. 6769
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extensions of or amendments to such agreements and any disclosures 1501
or agreements required pursuant to sections 20-325a to 20-325l, 1502
inclusive, as amended by this act; and (3) all canceled checks, unused 1503
checks, checkbooks and bank statements for any escrow or trust account 1504
maintained pursuant to section 20-324k. [Such] 1505
(b) Each leasing agent licensed under the provisions of this chapter 1506
shall retain copies of such leasing agent's employment agreement or 1507
contract with a development owner for a period of not less than seven 1508
years. 1509
(c) All records [may] required under subsection (a) or (b) of this 1510
section shall be retained in [any format, electronic or otherwise,] an 1511
electronic format that is capable of producing an accurate copy of the 1512
original documents unless it is commercially impractical for a real estate 1513
broker or leasing agent to retain such records in such format. If it is 1514
commercially impractical for a real estate broker or leasing agent to 1515
retain such records in an electronic format, the real estate broker or 1516
leasing agent shall retain such records in a paper format that is capable 1517
of producing an accurate copy [in paper format] of the original 1518
[document] documents. Each real estate broker or leasing agent shall 1519
make such records available to the department upon any request made 1520
by the department for such records. 1521
Sec. 34. Section 20-327c of the general statutes is repealed and the 1522
following is substituted in lieu thereof (Effective April 1, 2024): 1523
(a) On or after January 1, 1996, every agreement to purchase 1524
residential real estate, for which a written residential condition report 1525
is, or written residential condition reports are, required pursuant to 1526
section 20-327b, shall include a requirement that the seller credit the 1527
purchaser with the sum of five hundred dollars at closing should the 1528
seller fail to furnish the written residential condition report or reports as 1529
required by sections 20-327b to 20-327e, inclusive. 1530
(b) [(1)] No seller who credits a purchaser pursuant to subsection (a) 1531 Substitute Bill No. 6769
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of this section shall, by reason of such credit, be excused from disclosing 1532
to the purchaser any defect in the residential real estate if such defect: 1533
[(A)] (1) Is subject to disclosure pursuant to section 20-327b; 1534
[(B)] (2) Is within the seller's actual knowledge of such residential real 1535
estate; and 1536
[(C)] (3) Significantly impairs [(i)] (A) the value of such residential 1537
real estate, [(ii)] (B) the health or safety of future occupants of such 1538
residential real estate, or [(iii)] (C) the useful life of such residential real 1539
estate. 1540
[(2)] (c) A purchaser may, without limiting any other remedies 1541
available to the purchaser, bring a civil action in the judicial district in 1542
which the residential real estate is located to recover actual damages 1543
from a seller who fails to disclose to such purchaser any defect described 1544
in [subdivision (1) of this subsection to such purchaser] subsection (b) 1545
of this section. 1546
Sec. 35. Subsections (a) and (b) of section 20-327f of the general 1547
statutes are repealed and the following is substituted in lieu thereof 1548
(Effective April 1, 2024): 1549
(a) With respect to a contract for the sale of [a one-to-four family] 1550
residential real property, if the seller provides written notice to the 1551
purchaser, prior to, or upon, entering into the contract, of the availability 1552
of the lists of hazardous waste facilities pursuant to section 22a-134f, the 1553
seller and any real estate licensee shall be deemed to have fully satisfied 1554
any duty to disclose the presence of all hazardous waste facilities, as 1555
defined in section 22a-134f even if: (1) The list required to be submitted 1556
pursuant to section 22a-134f has not been submitted, (2) the list has not 1557
been received or made available as required in section 22a-134f, or (3) 1558
there is an error, omission or inaccuracy in the list. 1559
(b) With respect to a contract for the sale of [a one-to-four family] 1560
residential real property, if the seller provides written notice to the 1561 Substitute Bill No. 6769
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purchaser, prior to, or upon, entering into the contract, of the availability 1562
of information concerning environmental matters from the United 1563
States Environmental Protection Agency, the National Response Center, 1564
the United States Department of Defense and third-party providers, the 1565
seller and any real estate licensee shall be deemed to have fully satisfied 1566
any duty to disclose environmental matters concerning properties other 1567
than the property that is the subject of the contract. 1568
Sec. 36. Subsection (a) of section 20-327g of the general statutes is 1569
repealed and the following is substituted in lieu thereof (Effective April 1570
1, 2024): 1571
(a) With respect to a contract for the sale of [a one-to-four family] 1572
residential real property, if the seller provides written notice to the 1573
purchaser, prior to, or upon, entering into the contract, that a list of local 1574
properties upon which hunting or shooting sports regularly take place 1575
may be available at the office of the town clerk, the seller and any real 1576
estate licensee shall be deemed to have fully satisfied any duty to 1577
disclose the presence of local properties upon which hunting or 1578
shooting sports regularly take place, even if (1) the list is not available 1579
at the office of the town clerk, or (2) there is an error, omission or 1580
inaccuracy in the list. 1581
Sec. 37. Subsection (b) of section 20-327h of the general statutes is 1582
repealed and the following is substituted in lieu thereof (Effective April 1583
1, 2024): 1584
(b) Commencing sixty days after the date on which the Commission 1585
on Human Rights and Opportunities makes a disclosure form available 1586
pursuant to subsection (a) of this section, each person who offers a 1587
residential real property [containing two or more units] in the state for 1588
sale, exchange or for lease with option to buy shall attach a photocopy, 1589
duplicate original, facsimile transmission or other exact reproduction or 1590
duplicate of such disclosure form, signed by the prospective purchaser, 1591
to any purchase agreement, option or lease containing a purchase 1592
option, at the time of closing. 1593 Substitute Bill No. 6769
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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 live at such property and are employed 1609
as on-site residential superintendents, janitors or custodians, with 1610
respect to the property so owned or leased or sought to be acquired or 1611
leased when such acts are performed in the regular course of, or incident 1612
to, the management of such property and the investment therein; (2) any 1613
person acting as attorney-in-fact under a duly executed power of 1614
attorney from the owner authorizing the final consummation by 1615
performance of any contract for the sale, leasing or exchange of real 1616
estate, or to service rendered by any attorney-at-law in the performance 1617
of the attorney-at-law's duties as such attorney-at-law; (3) a receiver, 1618
trustee in bankruptcy, administrator, executor or other fiduciary, while 1619
acting as such, or any person selling real estate under order of any court, 1620
or to a trustee acting under a trust agreement, deed of trust or will, or 1621
the 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 Substitute Bill No. 6769
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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
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; and (10) any person who is employed by 1655
a broker to perform clerical services, which person shall not negotiate 1656
the terms of an agreement, list a property unless on behalf of a real estate 1657
licensee, open or be listed as a signatory on a broker's escrow or trust 1658
account or sell, buy or lease real property for another person for 1659
compensation. 1660 Substitute Bill No. 6769
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Sec. 40. Section 20-329a of the general statutes is repealed and the 1661
following is substituted in lieu thereof (Effective April 1, 2024): 1662
As used in this section and sections [20-329a] 20-329b to 20-329n, 1663
inclusive, as amended by this act: 1664
(1) "Disposition" or "dispose of" means any sale, exchange, lease, 1665
assignment, award by lottery or other transaction designed to convey 1666
an interest in a subdivision or parcel, lot, or unit in a subdivision when 1667
undertaken for gain or profit; 1668
(2) "Offer" means every inducement, solicitation or attempt to bring 1669
about a disposition; 1670
(3) "Person" means an individual, firm, company, association, 1671
corporation, limited liability company, government or governmental 1672
subdivision or agency, business trust, estate, trust, partnership, 1673
unincorporated association or organization, two or more of any of the 1674
foregoing having a joint or common interest, or any other legal or 1675
commercial entity; 1676
(4) "Broker" means a resident real estate broker duly licensed under 1677
this chapter; 1678
(5) "Salesperson" means any person duly licensed as a real estate 1679
salesperson under this chapter; 1680
(6) "Purchaser" means a person who acquires an interest in any lot, 1681
parcel or unit in a subdivision; and 1682
(7) "Subdivision" means any improved or unimproved land or tract 1683
of land located outside this state which is divided or proposed to be 1684
divided into five or more lots, parcels, units, or interests for the purpose 1685
of disposition, at any time as part of a common promotional plan. Any 1686
land which is under common ownership or which is controlled by a 1687
single developer or a group of developers acting in concert, is 1688
contiguous in area, and is designated or advertised as a common unit or 1689 Substitute Bill No. 6769
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known by a common name, shall be presumed, without regard to the 1690
number of lots, parcels, units or interests covered by each individual 1691
offering, to be part of a common promotional plan. [; and] 1692
[(8) "Advertising" means publishing or causing to be published: (A) 1693
By means of any newspaper or periodical; (B) by means of any radio or 1694
television broadcast; (C) by means of any written or printed or 1695
photographic matter produced by any duplicating process producing 1696
ten copies or more, any information offering for sale or for the purpose 1697
of causing or inducing any other person to purchase or to acquire an 1698
interest in the title to subdivided lands, including the land sales contract 1699
to be used and any photographs or drawings or artist's representations 1700
of physical conditions or facilities on the property existing or to exist; or 1701
(D) by means of any material used in connection with the disposition or 1702
offer of subdivided lands by radio, television, telephone or any other 1703
electronic means. "Advertising" does not include: Stockholder 1704
communications such as annual reports and interim financial reports, 1705
proxy materials, registration statements, securities prospectuses, 1706
applications for listing securities on stock exchanges, and the like; 1707
prospectuses, property reports, offering statements or other documents 1708
required to be delivered to prospective purchasers by an agency of any 1709
other state or the federal government; all communications addressed to 1710
and relating to the account of any persons who have previously 1711
executed a contract for the purchase of the subdivider's lands except 1712
where directed to the sale of additional lands; or press releases or other 1713
communications delivered to newspapers or other periodicals for 1714
general information or public relations purposes, provided no charge is 1715
made by such newspapers or other periodicals for the publication or use 1716
of any part of such communications.] 1717
Sec. 41. Section 20-329n of the general statutes is repealed and the 1718
following is substituted in lieu thereof (Effective April 1, 2024): 1719
All moneys paid or advanced by a purchaser or lessee or prospective 1720
purchaser or prospective lessee for any lot, parcel, unit or interest in any 1721
subdivision, the disposition of which is controlled by sections 20-329a, 1722 Substitute Bill No. 6769
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as amended by this act, 20-329b, 20-329d, 20-329e, 20-329f [,] and 20-1723
329h, [and 20-329i,] or such portion of such moneys as the commission 1724
may determine is sufficient for the protection of the interests of such 1725
purchaser or lessee shall be deposited by the seller or lessor in an escrow 1726
account, approved by the commission, in a bank doing business in this 1727
state. Such money shall remain in such escrow account until (1) a proper 1728
and valid release is obtained for such money, (2) the owner or 1729
subdivider or the purchaser or lessee has defaulted under their contract 1730
for sale or lease and the commission or a court has made a determination 1731
as to the disposition of such money, or (3) the owner or subdivider or 1732
the seller or lessor orders the return of such money to such purchaser or 1733
lessee. 1734
Sec. 42. Subsection (c) of section 47-90a of the general statutes is 1735
repealed and the following is substituted in lieu thereof (Effective April 1736
1, 2024): 1737
(c) Every person who directly or indirectly controls a declarant liable 1738
under subsection (a) of this section, every general partner, officer or 1739
director of a declarant and every person occupying a similar status or 1740
performing a similar function, every employee of the declarant who 1741
materially aids in the disposition, and every agent who materially aids 1742
in the disposition is also liable jointly and severally with and to the same 1743
extent as the declarant, provided the plaintiff sustains the burden of 1744
proof that such person knew or, in the exercise of reasonable care 1745
expected by such persons in the reasonable exercise of their duties, 1746
should have known of the existence of the facts by reason of which the 1747
liability is alleged to exist. There is a right to contribution in cases of 1748
contract among persons so liable. No person shall be liable under this 1749
section whose relationship to the declarant or other person consists 1750
solely of rendering professional and other customary services, 1751
including, but not limited to: (1) An attorney-at-law, architect, land 1752
surveyor or engineer; (2) a lending institution which is not a declarant 1753
whose relationship to the declarant consists solely of rendering 1754
customary banking services and holding a mortgage on all or a portion 1755 Substitute Bill No. 6769
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of the condominium which mortgage, or agreements or instruments 1756
relating thereto, may contain mutual covenants and agreements 1757
concerning the approval of the condominium instruments and 1758
amendments thereto, and regulates the activity of the declarant under 1759
the condominium instruments or an officer, director or employee of 1760
such lending institution; (3) a real estate broker or salesman whose 1761
relationship to the declarant consists solely of [rendering services 1762
described in subdivision (6) of] engaging in the real estate business, as 1763
defined in section 20-311, as amended by this act, and other customary 1764
services; or (4) a person whose sole involvement in the disposition of a 1765
condominium unit occurs subsequent to the date of the act or omission 1766
out of which any liability under subsection (a) of this section arises. 1767
Sec. 43. Subsection (a) of section 47-42f of the general statutes is 1768
repealed and the following is substituted in lieu thereof (Effective April 1769
1, 2024): 1770
(a) As used in this section: (1) "Residential real property" has the same 1771
meaning as provided in section [20-325c] 20-311, as amended by this act, 1772
but does not include property owned by the state or any political 1773
subdivision thereof; (2) "benefited property" or "property that benefits" 1774
includes residential real property burdened by an easement or right-of-1775
way, the owner of which residential real property uses such easement 1776
or right-of-way; and (3) "easement" or "right-of-way" means a private 1777
appurtenant easement or right-of-way. 1778
Sec. 44. Sections 20-329i and 20-324j of the general statutes are 1779
repealed. (Effective April 1, 2024) 1780
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 Substitute Bill No. 6769
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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
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
Substitute Bill No. 6769
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Statement of Legislative Commissioners:
In Section 1(11), "individual real estate broker who is responsible" was
changed to "individual broker responsible" for conciseness; Section
1(23)(B) was divided into clauses for clarity; in Section 7(a), "broker" was
changed to "broker's" for clarity; in Section 25, "this section and" was
deleted for accuracy; and in Section 28(a), "to the contrary" was
bracketed for consistency with standard drafting conventions.
GL Joint Favorable Subst.