O F F I C E O F L E G I S L A T I V E R E S E A R C H
P U B L I C A C T S U M M A R Y
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PA 23-84—sHB 6769
General Law Committee
Insurance and Real Estate Committee
AN ACT CONCERNING TH E DEPARTMENT OF CONS UMER
PROTECTION'S RECOMME NDATIONS REGARDING REAL ESTATE
LICENSING AND ENFORC EMENT
TABLE OF CONTENTS
§§ 2 & 16 — SUPERVISING BROKERS’ RELATIONSHIP WITH
ASSOCIATE BROKERS
Clarifies that an associate broker may work for another broker (“supervising licensee”) in a
capacity that is similar to a real estate salesperson, which is consistent with existing practice
§§ 3-4, 12 & 17 — REAL ESTATE EDUCATION PROGRAMS
Generally replaces regulatory requirements on prelicensing and continuing education courses
with similar statutory ones
§ 5 — ACKNOWLEDGEMEN T OF INTERPRETER SERVICES
Requires parties to a real estate transaction or negotiation to sign a form that specifically
acknowledges that a language interpreter’s services were used
§ 6 — WRAPPING UP OR TRANSITIONING BROKERAGE BUSINESS
Establishes a process for a brokerage business to wrap up or transition under the oversight of a
custodial broker in the event of a broker’s death or incapacitation
§§ 7 & 33 — LEASING AGENTS’ SCOPE OF WORK AND EMPLOYMENT
Outlines residential real estate activities a leasing agent may engage in and under whose
affiliation
§§ 11 & 15 — LICENSE RENEWALS, REINSTATEMENT, AND APPEALS
Makes a real estate licensee’s license renewable biennially rather than annually and accordingly
adjusts fees; imposes fines for failure to complete continuing education requirements on time;
modifies the deadlines and process for seeking reinstatement; enhances the appeals process for
license denials
§ 29 — DISCLOSURES TO OTHER PARTY AND PROSPECTIVE PARTIES
Modifies requirements for licensees’ disclosure of their clients’ identity; requires additional
disclosures to prospective parties (e.g., concerning agency relationship and fair housing)
§ 31 — PROSPECTIVE PARTIES’ CONFIDENTIAL INFORMATION
Expands existing confidentiality law to prohibit real estate licensees from misusing prospective
parties’ confidential information O L R P U B L I C A C T S U M M A R Y
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SUMMARY: This act makes various changes to the laws governing real estate
business, including the laws on credentialing and the Department of Consumer
Protection (DCP) commissioner’s authority and oversight.
With regard to real estate credentials, the act (1) clarifies that an associate
broker may work for another broker in a capacity that is similar to that of a real
estate salesperson and (2) codifies a registration process for schools offering
prelicensure and continuing education courses. For DCP-issued real estate licenses,
the act makes them biennial, rather than annual, licenses and allows for license
reinstatement within three, rather than two, years of expiration. It adds provisions
applicable to all real estate licensees (i.e., brokers and salespeople) on their duty to
disclose, or keep confidential, certain information. It also creates a process for
transitioning or wrapping up a brokerage business in the event of a broker’s death
or incapacity.
The act also makes many minor and technical changes to the real estate
licensing laws (i.e., chapter 392) to clarify existing requirements for real estate
licensees or conform to existing practice. Among other minor changes, the act:
1. updates the definition of “advertising” used in the laws on real estate (i.e.,
chapter 392) to reflect the trend away from print advertising to online and
electronic advertising (§§ 1, 32 & 40);
2. clarifies that when the real estate licensing laws refer to a “one-to-four-
family residential property” the reference includes (a) a cooperative or
condominium with up to four units and (b) an individual unit in a multiunit
development (§§ 1 & 35-36);
3. specifically permits a real estate team to transfer the team’s registration
from one supervising licensee (broker) to another without applying for a
new team registration (§ 9);
4. requires, when a team transfers to a new supervising licensee, the new
supervising licensee to electronically update the team’s registration
information with DCP within 14 days (§ 16);
5. eliminates a requirement in the real estate license reciprocity law granting
reciprocity to out-of-state credentialed applicants only if the other state
grants reciprocity to Connecticut licensees (§ 14);
6. eliminates a provision requiring applicants for a reciprocal license to
consent to receiving service of process through the Connecticut Real Estate
Commission (§ 14);
7. allows a Connecticut-licensed broker or salesperson to compensate an out-
of-state broker or salesperson for referring a prospective party to a real
estate transaction in Connecticut (§§ 27 & 32);
8. prohibits brokers from making unilateral offers of subagency or otherwise
affiliating with a subagent (prior law allowed this with informed written
consent) (§ 30);
9. unless it is commercially impractical, requires brokers to keep documents
(e.g., purchase contracts, leases, options) in an electronic format, rather than
allowing them to use any format to comply with existing law’s records
retention requirements (§ 33);
10. requires the provision of a one-page disclosure on housing discrimination O L R P U B L I C A C T S U M M A R Y
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and federal and state fair housing laws at the closing for any residential real
property, not just closings for properties with at least two units (§ 37); and
11. clarifies the law stipulating who is exempt from real estate licensing laws,
including specifying leasing agents and a broker’s clerical staff are exempt
(§ 39).
Regarding enforcement powers, the act clarifies that DCP has broad authority
to investigate real estate licensees and others engaged in the real estate business and
allows DCP or the Real Estate Commission to impose fines of up to $5,000 per
violation. Under prior law, the cap was $2,000, except first violations of the law on
illegal referral fees was capped at $1,000 (§§ 17 & 18). The act similarly raises the
cap, from $1,000 to $5,000 on fines imposed by the Real Estate Commission on
people engaging in real estate business without the required license (§ 9). The act
sets fines for licensees who fail to complete required continuing education
coursework on time (§ 15). It also repeals general penalty and appeal provisions,
which largely are redundant to other existing provisions in the law (§ 44).
Lastly, the act also makes other minor, technical, and conforming changes.
EFFECTIVE DATE: April 1, 2024
§§ 2 & 16 — SUPERVISING BROKERS’ RELATIONSHIP WITH ASSOCIATE
BROKERS
Clarifies that an associate broker may work for another broker (“supervising licensee”) in a
capacity that is similar to a real estate salesperson, which is consistent with existing practice
The act clarifies the relationship between supervising brokers (“supervising
licensees”) and associate brokers. The act prohibits associate brokers from
practicing real estate unless the supervising licensee responsible for controlling and
supervising the associate broker knows that the latter is engaging in real estate
business and has consented to it.
Under the act, a “supervising licensee” is the real estate broker who is
responsible for controlling and supervising another real estate licensee (i.e., broker
or salesperson) or a team of them (i.e., any combination of at least two of them that
advertise using a team name and are affiliated with a single supervising licensee).
An “associate broker” is a broker affiliated with a supervising licensee in an
employee or independent contractor capacity with authority to engage in real estate
business on the supervising licensee’s behalf. The act requires supervising licensees
to be responsible for associate brokers’ actions as they would for affiliated
salespeople.
When an associate broker’s affiliation with a supervising licensee ends, he or
she must notify DCP by the earlier of 14 days after the (1) termination or (2) start
of an affiliation with another supervising licensee. As is the case for salespeople
under existing law, the act requires associate brokers who transfer their affiliation
to a different broker to register the transfer with DCP, at a cost of $25.
The act specifies that associate brokers must comply with the same advertising
standards required of other real estate brokers and specifically requires them to
include the name of the supervising licensee in a prominent location in all their O L R P U B L I C A C T S U M M A R Y
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advertisements.
§§ 3-4, 12 & 17 — REAL ESTATE EDUCATION PROGRAMS
Generally replaces regulatory requirements on prelicensing and continuing education courses
with similar statutory ones
The act creates a statutory scheme setting requirements for schools that offer
real estate prelicensing or continuing education courses, which are generally similar
to existing regulatory requirements related to (1) DCP registration, (2) instructor
qualifications, and (3) course offering approvals.
It correspondingly eliminates a requirement that the DCP commissioner adopt
regulations on approval of continuing education schools, but continues to allow the
commissioner, in consultation with the Real Estate Commission, to adopt
regulations on prelicensing or continuing education school approval, advertising,
and course offerings.
DCP Registration
The act requires all schools that offer prelicensing or continuing education
courses to register with the department biennially, as prescribed by the DCP
commissioner. The registration fee is $100 biennially. The form must include an
attestation that (1) all courses it offers comply with the applicable requirements
(including being individually registered, as the act requires) and (2) the instructors
teaching courses at the school meet the act’s prescribed qualifications.
The act prohibits DCP from disapproving schools or courses just because
courses are taught by electronic means.
The act subjects real estate school registrants to DCP or the Real Estate
Commission’s authority under existing law to investigate registrants, temporarily
suspend or permanently revoke a registration, and fine violators of real estate
credentialing laws up to $5,000 per violation.
Instructors
Under the act, an instructor must have:
1. at least five years of experience as a practicing real estate licensee;
2. expertise or a professional designation from an institute or society in the
field in which the instructor teaches; or
3. (a) experience teaching a course in a formal education program or (b)
attended an accredited college or university extension instructors’ seminar.
If teaching a collegiate level course that is part of a degree program, the
instructor must have (1) teaching experience and a master’s degree in an
appropriate field or (2) another combination of qualifications that the Real Estate
Commission approves.
Course Registration
O L R P U B L I C A C T S U M M A R Y
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Under the act, each prelicensing or continuing education course a school offers
must be registered with DCP. Only registered and approved courses count toward
licensing or continuing education requirements. The cost to register each course is
$50 and registrations are valid for five years. The school must submit to DCP an
application, in a format the department specifies, that includes:
1. an outline of the course content detailing its duration and the amount of time
spent on each subject covered;
2. the course instructor’s name and contact information;
3. a copy of the certificate that will be issued to students upon completion or,
if the school offers more than one course, the DCP-approved template
course completion certificate;
4. the cancellation and refund policy;
5. an attestation that the course meets all legal requirements; and
6. if the course is in-person, the location.
For prelicensing courses, content must be delivered on an in-person basis or
through electronic means incorporating a live online format. If a prelicensing or
continuing education course is offered by electronic means that do not allow for
real-time audio communication between the instructor and students, the school
must include in the course periodic interactive assessments to confirm each
student’s level of comprehension and engagement.
For continuing education courses, the content does not need to be delivered live,
but the course must be delivered in a way that prevents students from finishing it in
less time than the duration specified in the application. The following meet this
requirement:
1. offering a live online course format using telecommunications technology
that allows for real-time audio communication between the instructor and
students or
2. using technology that prohibits a student from completing the course in less
time than the total course duration specified in the application the school
filed with DCP.
§ 5 — ACKNOWLEDGEMENT OF INT ERPRETER SERVICES
Requires parties to a real estate transaction or negotiation to sign a form that specifically
acknowledges that a language interpreter’s services were used
Form When Third-Party Serves as Interpreter
Under the act, if a buyer or renter uses an interpreter (other than the real estate
licensee or their employee) for a real estate transaction or negotiation, the real estate
licensee must give the buyer or renter and the interpreter a form with certain
language, which they must sign. The language must read as follows:
“I, (name of buyer or renter), used (name of interpreter) to act as my
interpreter during this real estate transaction or these negotiations. The
obligations of this contract or other written agreement were explained to me O L R P U B L I C A C T S U M M A R Y
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in my native language by the interpreter. I understand the contract or other
written agreement.
(signature of buyer or renter)
(relationship of interpreter to buyer or renter)
I, (name of interpreter), acted as interpreter during this real estate
transaction or these negotiations. The obligations of the contract or other
written agreement were explained to (name of buyer or renter) in their
native language. I understand the contract or other written agreement.
(signature of interpreter)
(relationship of interpreter to buyer or renter).”
Form When Real Estate Licensee Acts as Interpreter
If a real estate licensee acts as an interpreter for a buyer or renter while also
engaging in a real estate transaction, the act requires the real estate licensee to get
the buyer or renter’s signature on a form the licensee must provide with the
following language written in the buyer or renter’s native language:
“This real estate transaction or these negotiations were conducted in
(buyer’s or renter’s native language), which is my native language. I
voluntarily choose to have the Real Estate (Broker/Salesperson) act as my
interpreter during the negotiations. The obligations of the contract or other
written agreement were explained to me in my native language. I understand
the contract or other written agreement.”
Under the act, if the buyer’s or renter’s native language cannot be reduced to
writing, the form must be in English.
§ 6 — WRAPPING UP OR TRANSITIONING BROKERAGE BUSINESS
Establishes a process for a brokerage business to wrap up or transition under the oversight of a
custodial broker in the event of a broker’s death or incapacitation
Under the act, if a broker dies or is mentally or physically incapacitated and
unable to serve as a broker, the executor of his or her estate (or another legally
authorized person) may apply to DCP requesting the appointment of a custodial
broker. If DCP approves the application, it must appoint a custodial broker to serve
a maximum 180-day term, unless DCP extends it after receiving a hardship
application. Under the act, a “custodial broker” is a licensed broker who is
temporarily appointed just to:
1. conclude the deceased or incapacitated broker’s real estate business matters
or transition them to another broker or
2. assist in transitioning the broker’s ownership interest in a business entity
engaged in real estate to comply with the law’s requirements for broker
businesses (e.g., ownership and control requirements).
Custodial brokers must preserve the financial interests of the deceased or O L R P U B L I C A C T S U M M A R Y
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incapacitated real estate broker or the estate of the deceased real estate broker. They
cannot negotiate the purchase, sale, or lease of real estate on behalf of the deceased
or incapacitated broker unless:
1. the prospective purchaser, seller, lessor, or lessee entered into a preexisting
buyer agreement, listing agreement, or leasing agreement with the deceased
or incapacitated broker and
2. the prospective purchaser or lessor has executed a contract or paid a deposit
to a seller or lessee to reserve a right to purchase or lease.
Associates and Team Members
The act prohibits salespeople and team members from engaging in real estate
business while the broker serving as their supervising licensee is deceased or
incapacitated unless a custodial broker has been appointed.
Serving as the Designated Broker
If a business entity’s designated broker (i.e., the person with the power to
supervise and control a broker business entity) is deceased or incapacitated, the
business entity cannot conduct real estate transactions unless a custodial broker has
been appointed.
If a custodial broker is appointed to serve as the business entity’s designated
broker, the business entity may engage in real estate transactions as it would if the
designated broker was not a custodial broker.
§§ 7 & 33 — LEASING AGENTS’ SCOPE OF WORK AND EMPLOYMENT
Outlines residential real estate activities a leasing agent may engage in and under whose
affiliation
Under the act, a “leasing agent” is someone who acts as agent for a principal
for a commission, fee, or other valuable consideration and engages in residential
leasing or renting activity (e.g., collecting security deposits, offering or negotiating
a rental, or collecting rent). The act specifies that leasing agents cannot engage in
any activity that requires a broker or real estate salesperson’s license, including (1)
selling, offering, listing, negotiating, referring, or showing for sale; (2) entering into
lease-to-own agreements; or (3) leasing commercial real estate.
Leasing agents must only work for and be employed by a development owner
who, under the act, is the (1) owner of record of a multiunit development in which
units are offered for lease or (2) parent company holding a 100% interest in the
owner of record. “Multiunit developments” are residential complexes with at least
50 units that are rentals. Leasing agents must have a written contract before
engaging in leasing activity for a development. Contracts must be maintained for
at least seven years and provided in electronic form to DCP upon request.
§§ 11 & 15 — LICENSE RENEWALS, REINSTATEMENT, AND APPEALS O L R P U B L I C A C T S U M M A R Y
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Makes a real estate licensee’s license renewable biennially rather than annually and accordingly
adjusts fees; imposes fines for failure to complete continuing education requirements on time;
modifies the deadlines and process for seeking reinstatement; enhances the appeals process for
license denials
Biennial Licenses
The act makes broker and salesperson licenses renewable biennially, rather than
annually. It correspondingly increases the:
1. initial license fee for brokers from $565 to $1,130;
2. renewal fee for brokers from $375 annually to $750 biennially;
3. initial license fee (and identical renewal fee) for salespeople from $285 to
$570;
4. continuing education processing fee from $4 annually to $8 biennially; and
5. amount of each real estate license renewal fee that goes to the Real Estate
Guaranty Fund from $3 to $6.
Late Renewal and Reinstatement
Under the act, if a renewal application is submitted within 90 days after the
credential’s expiration, the applicant does not have to apply for reinstatement. But
the applicant may be subject to the statutory late fee (10% of the renewal fee, but
not less than $10 or more than $100) (CGS § 21a-4(c)).
Under the act, if more than 90 days elapse, but fewer than three years, an
application for reinstatement is required. Under prior law, reinstatement could be
sought only within two years from the license’s expiration. As under existing law,
reinstatement is discretionary and if the period during which reinstatement may be
sought ends, the expired license holder must apply for a new license.
Under the act, reinstatement requirements vary depending on whether the
person worked in the field without a required license. The act applies the same fee
structure that already applies to reinstatements but adds requirements for continuing
education. So, under the act:
1. if the applicant did not work, he or she must (a) pay the current year’s
renewal fee for reinstatement and (b) take any continuing education
required for the year of, and the year before, the reinstatement and
2. if the applicant worked, he or she must (a) pay all license and late fees due
for the period the credential was lapsed and (b) demonstrate completion of
any continuing education required for the year before reinstatement.
For each year or fraction of a year from the date of expiration, the late fee is
$375 for brokers and $285 for salespeople.
Military Reinstatements
The act gives people in the military up to three years, instead of the two years
as under prior law, to seek a no-fee reinstatement. But the act also requires them to
show that they completed at least six hours of continuing education, including the
mandatory continuing education required for their license, during the calendar year O L R P U B L I C A C T S U M M A R Y
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before the date they file for reinstatement.
Continuing Education Delinquency Fee
Under the act, if a real estate licensee fails to complete the required continuing
education for any two-year license period, they must pay:
1. $315 if the requirements were met within two months after the license
period expired or
2. $625 if the requirements were met more than two months, but less than four,
after the license period expired.
The department must prescribe how a licensee can report this information to it.
Appeals Following Denial
The act enhances existing law’s appeals process for applicants who are refused
a real estate license. As under existing law, applicants who are denied an initial or
renewal license must be afforded an opportunity for a hearing.
The act specifies that following a denial, DCP must send a notice to the
applicant disclosing the denial and informing them that they may request a hearing
by submitting a written hearing request within 30 days after the notice was sent. If
the applicant requests a hearing, DCP must send him or her a notice disclosing the
grounds for the license denial. DCP must hold the hearing and, if the denial is
sustained, the applicant may file a new application for the same license or renewal
not sooner than one year after the denial date.
§ 29 — DISCLOSURES TO OTHER PARTY AND PROSPECTIVE PARTIES
Modifies requirements for licensees’ disclosure of their clients’ identity; requires additional
disclosures to prospective parties (e.g., concerning agency relationship and fair housing)
Under prior law, real estate licensees who represented a seller, lessor,
prospective purchaser, or lessee had to disclose, in writing, the identity of their
client to any party to the transaction who did not have a broker or salesperson
representing them. If it was a commercial transaction, the disclosure was required
before the prospective purchaser or lessee signed the purchase contract or lease. For
residential transactions, the disclosure was required at the beginning of the first
personal meeting on the (1) prospective purchaser’s or lessee’s specific needs in
the transaction or (2) seller’s or lessor’s real property. The act instead requires
licensees to disclose their client’s identity upon request.
The act also requires licensees to disclose to prospective parties in writing
(including by electronic means) by the first personal meeting:
1. the types of agency relationships available to the prospective party and
2. that the prospective party should not share confidential information with the
licensee until the prospective party has entered into a written representation
agreement with the licensee.
If it is a residential real estate transaction, licensees must also give a prospective O L R P U B L I C A C T S U M M A R Y
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party information on fair housing discrimination, including a description of federal
and state fair housing laws, protected classes, and where to get more information
and available resources.
As under existing law, the DCP commissioner must adopt regulations to carry
out these disclosure provisions as he deems necessary.
§ 31 — PROSPECTIVE PARTIES’ CONFIDENTIAL INFORMATION
Expands existing confidentiality law to prohibit real estate licensees from misusing prospective
parties’ confidential information
Existing law, with limited exceptions, prohibits real estate licensees from (1)
revealing confidential information about a person whom they represented as an
agent, designated buyer agent, or a designated seller agent; (2) using confidential
information about that person to the person’s disadvantage; or (3) using confidential
information about that person for the licensee’s advantage or the advantage of a
third party. The act expands these prohibitions to include confidential information
about prospective parties, which the act defines as people that communicate with a
licensee to consider potential representation in a real estate transaction.