CT
Connecticut House Bill HB06769

Connecticut 2023 Regular Session

Connecticut House Bill HB06769 Compare Versions

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6-Public Act No. 23-84
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7+General Assembly Substitute Bill No. 6769
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914 AN ACT CONCERNING THE DEPARTMENT OF CONSUMER
10-PROTECTION'S RECOMMENDATIONS REGARDING REAL
11-ESTATE LICENSING AND ENFORCEMENT.
15+PROTECTION'S RECOMMENDATIONS REGARDING REAL ESTATE
16+LICENSING AND ENFORCEMENT.
1217 Be it enacted by the Senate and House of Representatives in General
1318 Assembly convened:
1419
15-Section 1. Section 20-311 of the general statutes is repealed and the
16-following is substituted in lieu thereof (Effective April 1, 2024):
17-As used in this chapter and sections 2 to 7, inclusive, of this act, unless
18-the context otherwise requires:
19-(1) "Advertising" (A) means disseminating, publishing or causing to
20-be posted by way of any (i) print media, including, but not limited to,
21-outdoor signage and periodicals, (ii) audio or video broadcast,
22-streaming or other electronic dissemination, or (iii) written or
23-photographic material disseminated or posted via online, telephonic
24-notification, electronic mail or other electronic means, and (B) does not
25-include any (i) stockholder communication, including, but not limited
26-to, any annual report, interim financial report, proxy material,
27-registration statement, securities prospectus or application for listing a
28-security on a stock exchange, (ii) prospectus, property report, offering
29-statement or other document that any federal agency or agency of
30-another state requires be delivered to a prospective purchaser, (iii) Substitute House Bill No. 6769
31-
32-Public Act No. 23-84 2 of 60
33-
34-communication addressed to, and relating to the account of, a person
35-who has executed a contract for the purchase of a subdivider's lands,
36-except if such communication concerns the sale of additional lands, or
37-(iv) press release or other communication delivered to a media outlet for
38-general information or public relations purposes, provided no charge is
39-imposed by such media outlet for publication or use of any part of such
40-communication;
41-(2) "Affiliated" means having a working relationship with a real estate
42-licensee by way of an (A) employer-employee relationship, or (B)
43-independent contractor relationship;
44-(3) "Associate broker" means a real estate broker who (A) is affiliated
45-with a supervising licensee as an independent contractor or employed
46-by a supervising licensee, and (B) has the authority to engage in the real
47-estate business on behalf of such supervising licensee;
48-(4) "Business entity" means any association, corporation, limited
49-liability company, limited liability partnership or partnership;
50-[(1)] (5) "Commercial real estate transaction" means any transaction
51-involving the sale, exchange, lease or sublease of real property other
52-than (A) real property containing any building or structure occupied, or
53-intended to be occupied, by not more than four families, or (B) a single
54-building lot to be used for family or household purposes;
55-[(2)] (6) "Commission" means the Connecticut Real Estate
56-Commission appointed under the provisions of section 20-311a;
57-(7) "Confidential information" means any fact concerning a person's
58-assets, expenses, income, liabilities, motivations to purchase, rent or sell
59-real property and previous offers received or made to purchase or lease
60-real property which (A) a client has not authorized for release, or (B) is
61-not (i) a matter of general knowledge, (ii) part of a public record or file
62-to which access is authorized pursuant to section 1-210, or (iii) otherwise Substitute House Bill No. 6769
63-
64-Public Act No. 23-84 3 of 60
65-
66-subject to disclosure under any other provision of the general statutes
67-or regulations of Connecticut state agencies;
68-(8) "Custodial broker" means any individual who is (A) licensed as a
69-real estate broker, and (B) temporarily appointed solely to (i) conclude
70-the real estate business matters of another broker who is deceased or
71-incapacitated, (ii) transition such matters to a real estate broker who is
72-alive and not incapacitated, or (iii) assist in transitioning the deceased
73-or incapacitated broker's ownership interest in a business entity that is
74-engaged in the real estate business for the purpose of satisfying the
75-requirements established in section 20-312, as amended by this act;
76-(9) "Department" means the Department of Consumer Protection;
77-[(3)] (10) "Designated agency" means the appointment by a real estate
78-broker of one or more brokers or salespersons affiliated with or
79-employed by the real estate broker to solely represent a buyer or tenant
80-as a designated buyer's agent and appoint another to represent a seller
81-or landlord as a designated seller's agent in a transaction;
82-(11) "Designated broker" means the individual real estate broker
83-whom a real estate broker business entity names as the individual
84-broker responsible for the supervision and overall operation of such
85-business entity's engagement in the real estate business in this state;
86-[(4)] (12) "Designated buyer agent" means a [broker or salesperson]
87-real estate licensee who is designated by the real estate broker by whom
88-such real estate licensee is employed, or with whom [the broker or
89-salesperson] such real estate licensee is affiliated, [or employed to]
90-solely to represent a named buyer or tenant client of the real estate
91-broker during the term of a buyer representation agreement or
92-authorization;
93-[(5)] (13) "Designated seller agent" means a [broker or salesperson]
94-real estate licensee who is designated by the real estate broker by whom Substitute House Bill No. 6769
95-
96-Public Act No. 23-84 4 of 60
97-
98-such real estate licensee is employed, or with whom [the broker or
99-salesperson] such real estate licensee is affiliated, [or employed to]
100-solely to represent a named seller or landlord client of the real estate
101-broker during the term of a listing agreement or authorization;
102-(14) "Development owner" means (A) the owner of record of a
103-multiunit development that is offered for lease, or (B) the parent
104-company of such owner of record if such parent company holds a one
105-hundred per cent ownership interest in such owner of record;
106-[(6) "Engaging in the real estate business"] (15) "Engage in the real
107-estate business" means to, while acting for another and for a fee,
108-commission or other valuable consideration, [in the listing for sale,
109-selling, exchanging, buying or renting, or offering or attempting to
110-negotiate a sale, exchange, purchase or rental of] negotiate for or offer,
111-or attempt to list for sale, sell, exchange, buy or rent, an estate or interest
112-in real estate or [a resale of] to resell a mobile manufactured home, as
113-defined in [subdivision (1) of section 21-64, or collecting upon a loan
114-secured or to be secured by a mortgage or other encumbrance upon or
115-transfer of real estate] section 21-64;
116-(16) "Incapacity" means any physical or mental incapacity which
117-prevents an individual from substantially satisfying such individual's
118-duties and responsibilities as a real estate licensee;
119-(17) "Influence residential real estate appraisals" includes, but is not
120-limited to, refusing or intentional failing to refer a homebuyer, or
121-encouraging other real estate licensees not to refer a homebuyer, to a
122-mortgage broker or lender, as such terms are defined in section 36a-760,
123-based solely on the fact that the mortgage broker or lender uses an
124-appraiser who has provided an appraisal reflecting a fair market value
125-estimate that was less than the sale contract price;
126-(18) "Leasing agent" means any individual, other than a real estate Substitute House Bill No. 6769
127-
128-Public Act No. 23-84 5 of 60
129-
130-licensee, who (A) acts as an agent for a principal for a commission, fee
131-or other valuable consideration, and (B) engages in leasing or renting
132-activity, including, but not limited to, (i) collecting security deposits, (ii)
133-offering or attempting to negotiate a rental, or (iii) collecting, offering or
134-attempting to collect rent for the use of real estate;
135-(19) "Multiunit development" means any residential complex with at
136-least fifty units that are leased or available to be leased;
137-(20) "Negotiate" means acting, directly or indirectly, as an
138-intermediary by facilitating, or participating in, communications
139-between parties related to the parties' interests in a real estate or mobile
140-manufactured home transaction;
141-(21) "Nonmaterial fact concerning real property" means any fact, set
142-of facts or circumstances surrounding real property which includes, but
143-is not limited to, the fact that (A) an occupant of real property is or has
144-been infected with a disease on the list of reportable diseases, emergency
145-illnesses and health conditions issued by the Commissioner of Public
146-Health pursuant to section 19a-2a, or (B) the real property was at any
147-time suspected to have been the site of a death or felony;
148-[(7)] (22) "Person" means any individual [, partnership, association,
149-limited liability company or corporation] or business entity;
150-(23) "Promotional note" (A) means any promissory note that (i) is
151-secured by a trust deed executed (I) on unimproved real property, (II)
152-after construction of an improvement of real property but before the first
153-sale of such property so improved, or (III) as a means of financing the
154-first purchase of such property so improved, and (ii) is subordinate, or
155-which by its terms may become subordinate, to any other trust deed on
156-such property, and (B) does not include any note which was executed
157-more than three years prior to being offered for sale or was secured by
158-a first trust deed on real property in a subdivision, which evidences a Substitute House Bill No. 6769
159-
160-Public Act No. 23-84 6 of 60
161-
162-bona fide loan made in connection with the financing of the usual costs
163-of the development of one or more residential, commercial or industrial
164-buildings on the property under a written agreement providing (i) for
165-either the disbursement of the loan funds as costs are incurred or in
166-relation to the progress of the work, and (ii) for title insurance insuring
167-the priority of the security as against mechanic's liens or for the final
168-disbursement of at least ten per cent of the loan funds after the
169-expiration of the period for the filing of mechanic's liens;
170-(24) "Prospective party" means any person that communicates with a
171-real estate licensee in contemplation of potential representation by the
172-real estate licensee in a real estate transaction;
173-[(8)] (25) "Real estate broker" or "broker" means (A) any person [,
174-partnership, association, limited liability company or corporation which
175-acts for another person or entity and for a fee, commission or other
176-valuable consideration, lists for sale, sells, exchanges, buys or rents, or
177-offers or attempts to negotiate a sale, exchange, purchase or rental of, an
178-estate or interest in real estate, or a resale of a mobile manufactured
179-home, as defined in subdivision (1) of section 21-64, or collects or offers
180-or attempts to collect rent for the use of real estate] engaged in the real
181-estate business, and (B) any person [, partnership, association, limited
182-liability company or corporation] employed by or on behalf of the owner
183-or owners of lots or other parcels of real estate, at a stated salary, upon
184-commission, upon a salary and commission basis or otherwise to sell
185-such real estate, or any parts thereof, in lots or other parcels, and who
186-sells or exchanges, or offers, attempts or agrees to negotiate the sale or
187-exchange of, any such lot or parcel of real estate;
188-(26) "Real estate licensee" means any real estate broker or real estate
189-salesperson licensed pursuant to this chapter;
190-[(9)] (27) "Real estate salesperson" or "salesperson" means [a person]
191-any individual who is affiliated with [any real estate broker as an Substitute House Bill No. 6769
192-
193-Public Act No. 23-84 7 of 60
194-
195-independent contractor or employed by a real estate broker to list for
196-sale, sell or offer for sale, to buy or offer to buy or to negotiate the
197-purchase or sale or exchange of real estate, or to offer for resale, a mobile
198-manufactured home, as defined in subdivision (1) of section 21-64, or to
199-lease or rent or offer to lease, rent or place for rent any real estate, or to
200-collect or offer or attempt to collect rent for the use of real estate] a
201-supervising licensee to (A) engage in the real estate business for or on
202-behalf of such [real estate broker, or who offers, sells or attempts to sell
203-the real estate or mobile manufactured homes of a licensed broker]
204-supervising licensee, or (B) if such individual is acting for another
205-person as a designated seller agent or designated buyer agent, [lists for
206-sale, sells, exchanges, buys or rents, or offers or attempts to negotiate a
207-sale, exchange, purchase or rental of, an estate or interest in real estate,
208-or a resale of a mobile manufactured home, as defined in subsection (a)
209-of section 21-64, or collects or offers or attempts to collect rent for the
210-use of real estate, but does not include employees of any real estate
211-broker whose principal occupation is clerical work in an office, or
212-janitors or custodians engaged principally in that occupation] engage in
213-the real estate business;
214-(28) "Real estate transaction" means any transaction in which (A) real
215-property is legally transferred to another person, or (B) a lease
216-agreement is executed between a landlord and a tenant;
217-(29) "Residential real property" means any one to four-family
218-residential real estate located in this state, including, but not limited to,
219-(A) a cooperative or condominium where the total number of units in
220-such cooperative or condominium does not exceed four units, and (B)
221-any individual unit within a multiunit development;
222-(30) "School" means any person that offers prelicensing or continuing
223-education courses approved pursuant to this chapter and sections 3 and
224-4 of this act; Substitute House Bill No. 6769
225-
226-Public Act No. 23-84 8 of 60
227-
228-(31) "Supervising licensee" means the real estate broker that is
229-responsible for controlling and supervising another real estate licensee
230-or a team;
231-[(10)] (32) "Team" means [a group] any combination of at least two
232-licensed real estate brokers, designated brokers or real estate
233-salespersons who are affiliated with the same [sponsoring real estate
234-broker] supervising licensee and engage in advertising as a group using
235-a team name; and
236-[(11)] (33) "Team name" means the name used to refer to a team in
237-team advertisements.
238-Sec. 2. (NEW) (Effective April 1, 2024) (a) No associate broker shall
239-engage in the real estate business unless the supervising licensee that is
240-responsible for controlling and supervising the associate broker (1)
241-knows that such associate broker is engaging in the real estate business,
242-and (2) has consented to such associate broker engaging in the real estate
243-business.
244-(b) Each supervising licensee shall be responsible for the actions of
245-the associate brokers who are under such supervising licensee's control
246-and supervision to the same extent that such supervising licensee would
247-be responsible for such associate brokers if such associate brokers were
248-real estate salespersons affiliated with such supervising licensee.
249-(c) If an associate broker's affiliation with a supervising licensee is
250-terminated, the associate broker shall notify the department of such
251-termination not later than fourteen calendar days after such termination
252-or such associate broker's affiliation with another supervising licensee,
253-whichever occurs first.
254-(d) Each associate broker shall comply with all advertising
255-requirements and standards that apply to real estate brokers, and shall
256-include the name of the supervising licensee who controls and Substitute House Bill No. 6769
257-
258-Public Act No. 23-84 9 of 60
259-
260-supervises such associate broker at a prominent location in all of such
261-associate broker's advertisements.
262-Sec. 3. (NEW) (Effective April 1, 2024) (a) (1) A school shall register
263-with the department, in a form and manner prescribed by the
264-Commissioner of Consumer Protection, prior to offering any
265-prelicensing or continuing education course. Such form shall include an
266-attestation by the school that:
267-(A) All courses offered by such school comply with the requirements
268-established in section 4 of this act; and
269-(B) All instructors teaching courses at such school are qualified
270-pursuant to subsection (c) of this section and section 4 of this act.
271-(2) No school shall offer any prelicensing or continuing education
272-course in this state unless such school maintains an active registration
273-with the department under this section.
274-(b) Each school registration issued pursuant to this section shall
275-expire biennially, and the initial registration fee and renewal fee for each
276-such school registration shall be one hundred dollars.
277-(c) No school shall permit an instructor to teach a course approved
278-under chapter 392 of the general statutes unless such school has
279-determined that the instructor has:
280-(1) At least five years of experience as a practicing real estate licensee;
281-(2) Expertise, or a professional designation from an institute or
282-society, in the field in which such instructor proposes to teach; or
283-(3) Experience teaching a course in a formal education program or
284-has attended an accredited college or university extension instructors'
285-seminar. For collegiate level courses that are part of a degree program,
286-the instructor shall have (A) teaching experience and a master's degree Substitute House Bill No. 6769
287-
288-Public Act No. 23-84 10 of 60
289-
290-in an appropriate field, or (B) such other combination of qualifications
291-as the commission may, in the commission's discretion, approve.
292-(d) No school shall offer any course that does not satisfy the
293-requirements established in section 4 of this act.
294-Sec. 4. (NEW) (Effective April 1, 2024) (a) Each school that is registered
295-with the department pursuant to section 3 of this act shall register with
296-the department, in a form and manner prescribed by the Commissioner
297-of Consumer Protection, each prelicensing or continuing education
298-course that such school intends to offer in this state. The fee to register
299-each course under this section shall be fifty dollars, and each course
300-registration application submitted to the department pursuant to this
301-section shall include:
302-(1) An outline of the course content detailing the total duration of
303-such course and the amount of time spent on each subject covered as
304-part of such course;
305-(2) The name of, and contact information for, each course instructor;
306-(3) A copy of the certificate issued to students upon completion of
307-such course;
308-(4) The cancellation and refund policy available to students for such
309-course;
310-(5) An attestation by the school that such course meets all the
311-requirements established in this section, section 20-314a of the general
312-statutes, as amended by this act, and all regulations adopted pursuant
313-to chapter 392 of the general statutes; and
314-(6) If such course is provided on an in-person basis, the location at
315-which such course is provided on an in-person basis.
316-(b) Notwithstanding subdivision (3) of subsection (a) of this section, Substitute House Bill No. 6769
317-
318-Public Act No. 23-84 11 of 60
319-
320-a school that offers more than one course may submit to the department
321-a template course completion certificate for the department's
322-consideration. If the department approves a template course completion
323-certificate, the school that submitted such certificate to the department
324-may use such template to issue all course completion certificates and not
325-be required to submit a copy of such certificates to the department
326-pursuant to subdivision (3) of subsection (a) of this section.
327-(c) No prelicensing or continuing education course shall qualify
328-towards the prelicensing or continuing education requirements
329-established for a real estate license under chapter 392 of the general
330-statutes unless such course has been approved by the department
331-pursuant to this section.
332-(d) The department shall not approve any prelicensing course under
333-this section unless such course is provided on an in-person basis or by
334-way of electronic means that incorporates a live online format.
335-(e) (1) Subject to the provisions of subdivision (2) of this subsection,
336-each school that offers a continuing education course under this section
337-shall ensure that no student may complete such course in less time than
338-the total course duration specified in the application that such school
339-filed with the department for such course pursuant to subsection (a) of
340-this section.
341-(2) If a school offers a course described in subdivision (1) of this
342-subsection by electronic means, the school may satisfy the requirements
343-established in subdivision (1) of this subsection by:
344-(A) Offering a live online course format using telecommunications
345-technology that allows for real-time audio communication between the
346-instructor and students; or
347-(B) Using technology that prohibits a student from completing the
348-course in less time than the total course duration specified in the Substitute House Bill No. 6769
349-
350-Public Act No. 23-84 12 of 60
351-
352-application that such school filed with the department for such course
353-pursuant to subsection (a) of this section.
354-(f) If a school offers any prelicensing or continuing education course
355-under this section by electronic means that do not allow for real-time
356-audio communication between the instructor and students, such school
357-shall include in such course periodic interactive assessments to confirm
358-each student's level of comprehension of, and engagement with, such
359-course.
360-(g) Each course registration issued pursuant to this section shall
361-expire five years after such registration is issued.
362-Sec. 5. (NEW) (Effective April 1, 2024) (a) If a real estate licensee
363-engages in the real estate business and a buyer or renter of real estate
364-uses an interpreter, other than the real estate licensee or an employee of
365-the real estate licensee, in conducting a real estate transaction or
366-negotiations, the real estate licensee shall provide to the buyer or renter
367-and interpreter, and obtain the buyer's or renter's and interpreter's
368-signatures on, forms containing the following language:
369-"I, (name of buyer or renter), used (name of interpreter) to act as my
370-interpreter during this real estate transaction or these negotiations. The
371-obligations of this contract or other written agreement were explained
372-to me in my native language by the interpreter. I understand the
373-contract or other written agreement.
374-(signature of buyer or renter)
375-(relationship of interpreter to buyer or renter)
376-I, (name of interpreter), acted as interpreter during this real estate
377-transaction or these negotiations. The obligations of the contract or other
378-written agreement were explained to (name of buyer or renter) in their
379-native language. I understand the contract or other written agreement. Substitute House Bill No. 6769
380-
381-Public Act No. 23-84 13 of 60
382-
383-(signature of interpreter)
384-(relationship of interpreter to buyer or renter)."
385-(b) Except as provided in subsection (c) of this section, if a real estate
386-licensee engages in the real estate business and acts as an interpreter for
387-a buyer or renter in conducting a transaction or negotiations, the real
388-estate licensee shall provide to the buyer or renter, and obtain the
389-buyer's or renter's signature on, a form containing the following
390-language written in the buyer's or renter's native language:
391-"This real estate transaction or these negotiations were conducted in
392-(buyer's or renter's native language), which is my native language. I
393-voluntarily choose to have the Real Estate (Broker/Salesperson) act as
394-my interpreter during the negotiations. The obligations of the contract
395-or other written agreement were explained to me in my native language.
396-I understand the contract or other written agreement."
397-(c) If a language that cannot be reduced to writing is used to conduct
398-a real estate transaction or negotiations, the form required under
399-subsection (b) of this section shall be in the English language.
400-Sec. 6. (NEW) (Effective April 1, 2024) (a) If a real estate broker dies or
401-is incapacitated, the executor of such broker's estate or any other person
402-who is legally authorized to act on behalf of such broker in a financial
403-transaction may apply to the department, in a form and manner
404-prescribed by the department, for the appointment of a custodial broker.
405-If the department approves an application for the appointment of a
406-custodial broker, the department shall appoint a custodial broker for the
407-deceased or incapacitated broker. Except as provided in subsection (b)
408-of this section, each custodial broker who is appointed pursuant to this
409-subsection shall serve for a term not to exceed one hundred eighty days.
410-(b) The department may, in the department's discretion, extend a
411-custodial broker's term beyond one hundred eighty days if the Substitute House Bill No. 6769
412-
413-Public Act No. 23-84 14 of 60
414-
415-department receives a hardship application that is submitted to the
416-department in a form and manner prescribed by the department.
417-(c) Each custodial broker shall act to preserve the financial interests
418-of the deceased or incapacitated real estate broker, or the estate of the
419-deceased real estate broker, for whom such custodial broker is
420-appointed.
421-(d) No real estate broker who is appointed as a custodial broker to
422-conclude the business of a deceased or incapacitated individual real
423-estate broker shall negotiate the purchase, sale or lease of any real estate
424-on behalf of such deceased or incapacitated broker unless:
425-(1) The prospective purchaser, seller, lessor or lessee of such real
426-estate entered into a preexisting buyer agreement, listing agreement or
427-leasing agreement with such deceased or incapacitated broker; and
428-(2) The prospective purchaser or lessor of such real estate has
429-executed a contract or paid a deposit to a seller or lessee to reserve a
430-right to purchase or lease such real estate from such seller or lessee.
431-(e) No business entity shall engage in the real estate business while
432-the designated broker for such business entity is deceased or
433-incapacitated unless a custodial broker has been appointed for such
434-business entity.
435-(f) If a custodial broker is appointed to serve as a designated broker
436-for a business entity, the business entity may engage in the real estate
437-business to the same extent that such business entity would engage in
438-such business if such designated broker was not a custodial broker.
439-(g) No real estate salesperson or team member shall engage in the real
440-estate business while the supervising licensee that is responsible for
441-controlling and supervising such salesperson or team is deceased or
442-incapacitated unless a custodial broker has been appointed for such Substitute House Bill No. 6769
443-
444-Public Act No. 23-84 15 of 60
445-
446-supervising licensee.
447-Sec. 7. (NEW) (Effective April 1, 2024) No leasing agent shall engage in
448-the real estate business except for leasing or renting real property that is
449-exclusively used for residential occupancy. Leasing agents shall not
450-engage in any activity that requires a real estate broker's or real estate
451-salesperson's license, including, but not limited to, selling, offering,
452-listing, negotiating, referring or showing for sale, entering into lease-to-
453-own agreements or leasing commercial real estate. A leasing agent shall
454-be employed by a development owner. A leasing agent shall not offer
455-leasing services for any person that is not a development owner. No
456-leasing agent shall engage in the real estate business concerning any
457-property other than on behalf of the owner of record of a multiunit
458-development that employs such leasing agent. A leasing agent shall
459-obtain a written contract from the development owner to demonstrate
460-such employment prior to engaging in any leasing activity at such
461-development. Such contract shall be made available to the department,
462-and produced by the leasing agent in an electronic form, upon a request
463-by the department for such contract.
464-Sec. 8. Section 20-311b of the general statutes is repealed and the
465-following is substituted in lieu thereof (Effective April 1, 2024):
466-(a) Within thirty days after the appointment of the members of the
467-commission, the commission shall meet in the city of Hartford for the
468-purpose of organizing by selecting such officers other than a
469-chairperson as the commission may deem necessary and appropriate. A
470-majority of the members of the commission shall constitute a quorum
471-for the exercise of the powers or authority conferred upon it.
472-(b) [(1)] The commission shall authorize the [Department of
473-Consumer Protection] department to issue licenses to real estate
474-[brokers and real estate salespersons] licensees. Substitute House Bill No. 6769
475-
476-Public Act No. 23-84 16 of 60
477-
478-[(2)] (c) The commission shall administer the provisions of this
479-chapter as to licensure and issuance, renewal, suspension or revocation
480-of licenses concerning the real estate business.
481-[(c)] (d) The commission shall be provided with the necessary office
482-space in Hartford by the Commissioner of Administrative Services. The
483-place of business of the commission and all files, records and property
484-of the commission shall at all times be and remain at such office, except
485-that inactive files shall be stored at a location designated by the
486-commission.
487-[(d)] (e) The commission shall hold meetings and hearings in
488-Hartford, in space provided by the Commissioner of Administrative
489-Services, or at such places outside of Hartford as shall be determined by
490-the chairman of the commission. The commission shall meet at least
491-once in each three-month period and may meet more often at the call of
492-its chairman. The chairman of the commission shall call a meeting of the
493-commission whenever requested to do so by a majority of the members
494-of the commission.
495-[(e)] (f) The commission shall vote on all matters requiring a decision
496-and votes shall be recorded in the commission's minutes.
497-Sec. 9. Section 20-312 of the general statutes is repealed and the
498-following is substituted in lieu thereof (Effective April 1, 2024):
499-(a) No person shall act as a real estate [broker or real estate
500-salesperson] licensee without a license issued by the commission or the
501-Commissioner of Consumer Protection, unless exempt under this
502-chapter. The [Commissioner of Consumer Protection] commissioner
503-may enter into any contract for the purpose of administratively
504-processing the renewal of licenses on behalf of the commission.
505-(b) The practice of engaging in the real estate business, or the offer to
506-[practice real estate brokerage] engage in the real estate business in this Substitute House Bill No. 6769
507-
508-Public Act No. 23-84 17 of 60
509-
510-state by [individual licensed real estate brokers or real estate
511-salespersons as a corporation, limited liability company, partnership or
512-limited liability partnership, a] real estate licensees, as a business entity
513-is permitted, provided:
514-(1) A material part of the business entity's business [of which]
515-includes engaging in the real estate [brokerage, is permitted, provided
516-(1) the] business;
517-(2) The business entity's personnel [of such corporation, limited
518-liability company, partnership or limited liability partnership] who
519-engage in the real estate [brokerage] business [as real estate brokers or
520-real estate salespersons, and the real estate brokers whose ownership,
521-control, membership or partnership interest is credited toward the
522-requirements of subdivision (3) of this subsection, are licensed or
523-exempt from licensure under this chapter, (2) the corporation, limited
524-liability company, partnership or limited liability partnership] are
525-licensed, or exempt from licensure, under this chapter;
526-(3) The business entity has been issued a real estate broker license [by
527-the commission as provided] as set forth in this section; [and]
528-(4) The business entity has paid the license or renewal fee required
529-for a real estate broker's license as set forth in section 20-314, as amended
530-by this act; [,and (3) except for] and
531-(5) The business entity is a publicly traded corporation or, if the
532-business entity is not a publicly traded corporation:
533-(A) [with respect to a corporation other than a nonstock corporation,]
534-The business entity is a stock corporation and one or more real estate
535-brokers, who are either licensed or exempt from licensure under this
536-chapter, own or control fifty-one per cent or more of the total issued
537-shares of the corporation; [,] Substitute House Bill No. 6769
538-
539-Public Act No. 23-84 18 of 60
540-
541-(B) [with respect to] The business entity is a nonstock corporation [,]
542-and one or more real estate brokers, who are licensed or exempt from
543-licensure under this chapter, constitute at least fifty-one per cent of the
544-members of the nonstock corporation; [,]
545-(C) [with respect to] The business entity is a limited liability company
546-[,] and one or more real estate brokers, who are licensed or exempt from
547-licensure under this chapter, own or control at least fifty-one per cent of
548-the interest in the limited liability company, as defined in section 34-
549-243a; [,] or
550-(D) [with respect to] The business entity is a partnership or limited
551-liability partnership [, one or more real estate brokers'] and the
552-partnership interest, as defined in section 34-301, of one or more real
553-estate brokers, who are licensed or exempt from licensure under this
554-chapter, constitutes at least fifty-one per cent of the total partnership
555-interest. [No such corporation, limited liability company, partnership or
556-limited liability partnership shall be relieved of responsibility for the
557-conduct or acts of its agents, employees or officers by reason of its
558-compliance with this section, nor shall any individual practicing real
559-estate brokerage be relieved of responsibility for real estate services
560-performed by reason of the individual's employment or relationship
561-with such corporation, limited liability company, partnership or limited
562-liability partnership. The Real Estate Commission may refuse to
563-authorize the issuance or renewal of a license if any facts exist that
564-would entitle the commission to suspend or revoke an existing license.]
565-(c) A [corporation, limited liability company, partnership or limited
566-liability partnership] business entity desiring a real estate broker license
567-shall file with the commission or the [commissioner] Commissioner of
568-Consumer Protection an application on such forms and in such manner
569-as prescribed by the [Department of Consumer Protection] department.
570-Each such [corporation, limited liability company, partnership or
571-limited liability partnership] business entity shall file with the Substitute House Bill No. 6769
572-
573-Public Act No. 23-84 19 of 60
574-
575-commission, [a designation of at least one individual licensed or
576-qualified to be licensed as a real estate broker in this state who shall be
577-in charge of the real estate brokerage business of such corporation,
578-limited liability company, partnership or limited liability partnership in
579-this state] in a form and manner prescribed by the department, the
580-identity of, and contact information for, at least one designated broker.
581-Such [corporation, limited liability company, partnership or limited
582-liability partnership] business entity shall notify the commission of any
583-change in [such designation] the identity of, or contact information for,
584-such designated broker not later than thirty days after such change
585-becomes effective.
586-(d) The Real Estate Commission may impose a fine of not more than
587-[one] five thousand dollars per violation on any [corporation, limited
588-liability company, partnership or limited liability partnership] person
589-that engages in the real estate business, including, but not limited to,
590-leasing or rental activity, without a license required by this section. Any
591-such imposition of a fine by the commission shall be a proposed final
592-decision and submitted to the [commissioner] Commissioner of
593-Consumer Protection in accordance with the provisions of subsection
594-(b) of section 21a-7.
595-(e) [(1) (A) Except as provided in subdivision (2) of this subsection,
596-each] Each team shall register, on a form and in a manner prescribed by
597-the [commissioner] Commissioner of Consumer Protection, with the
598-[Department of Consumer Protection] department. Each initial
599-registration shall be valid for a period of one year and be subject to
600-renewal for additional one-year periods. Each team shall pay to the
601-department an initial registration fee of five hundred sixty-five dollars
602-when the team files its initial registration, and a registration renewal fee
603-of three hundred seventy-five dollars when the team files each
604-registration renewal, pursuant to this subparagraph. Each team shall
605-include in each registration form that the team files with the department Substitute House Bill No. 6769
606-
607-Public Act No. 23-84 20 of 60
608-
609-pursuant to this [subparagraph] subsection:
610-[(i) The] (1) Such team's team name, which shall:
611-[(I)] (A) Include the full name of at least one licensed real estate
612-broker or real estate salesperson who is part of [the] such team or be
613-immediately followed by "at/of [full name of the [sponsoring real estate
614-broker] team's supervising licensee]";
615-[(II)] (B) Not include the name of any individual who is not a licensed
616-real estate broker or real estate salesperson; and
617-[(III)] (C) With the exception of "team", not include any abbreviation,
618-term or phrase, including, but not limited to, "associates", "company",
619-"corporation", "group", "LLC", "real estate" or "realty", that implies that
620-[the] such team is a business entity;
621-[(ii)] (2) The name of, and contact information for, [the] such team's
622-[sponsoring real estate broker] supervising licensee, who shall serve as
623-[the] such team's primary contact, ensure that [the] such team complies
624-with all applicable laws and regulations concerning team
625-advertisements and ensure that [the] such team timely files accurate
626-registration forms and registration updates with the department
627-pursuant to this [subdivision] subsection; and
628-[(iii)] (3) The name and contact information for each real estate broker
629-or real estate salesperson who is part of [the] such team.
630-[(B)] (f) A team shall send notice to the department disclosing any
631-change to the information contained in the team's registration form. The
632-team shall send such notice to the department, on a form and in a
633-manner prescribed by the [commissioner] Commissioner of Consumer
634-Protection, not later than twelve days after the date of such change. A
635-team may transfer the team's registration from one supervising licensee
636-to another supervising licensee, without applying for a new team Substitute House Bill No. 6769
637-
638-Public Act No. 23-84 21 of 60
639-
640-registration, if (1) all members of such team transfer to such other
641-supervising licensee, and (2) both supervising licensees agree to such
642-transfer.
643-[(C)] (g) Each team shall comply with all advertising requirements
644-and standards that apply to real estate brokers, and shall include the
645-name of [the] such team's [sponsoring real estate broker] supervising
646-licensee at a prominent location in all of [the] such team's
647-advertisements.
648-[(2) The commissioner may, in the commissioner's discretion, engage
649-the services of such third parties that the commissioner deems necessary
650-to assist the commissioner in implementing the provisions of
651-subdivision (1) of this subsection, provided no expenditure of state
652-funds shall be made to cover the cost of hiring a consultant to make
653-programmatic changes to the licensing system.]
654-Sec. 10. Section 20-312b of the general statutes is repealed and the
655-following is substituted in lieu thereof (Effective April 1, 2024):
656-A [licensed] real estate [broker or real estate salesperson] licensee
657-shall not be considered an employee under the provisions of section 31-
658-275 if substantially all of the remuneration for the services performed by
659-such [broker or salesperson] real estate licensee, whether paid in cash or
660-otherwise, is directly related to sales or other output rather than to the
661-number of hours worked, and such services are performed by the
662-[broker or salesperson] real estate licensee pursuant to a written contract
663-that contains the following provisions:
664-(1) The [broker or salesperson] real estate licensee, for purposes of
665-workers' compensation, is engaged as an independent contractor
666-associated with the person for whom services are performed;
667-(2) The [broker or salesperson] real estate licensee shall be paid a
668-commission based on [his] such real estate licensee's gross sales or Substitute House Bill No. 6769
669-
670-Public Act No. 23-84 22 of 60
671-
672-leases, if any, without deduction for taxes, which commission shall be
673-directly related to sales, leases or other output;
674-(3) The [broker or salesperson] real estate licensee shall not receive
675-any remuneration related to the number of hours worked and shall not
676-be treated as an employee with respect to such services for purposes of
677-workers' compensation;
678-(4) The [broker or salesperson] real estate licensee shall be permitted
679-to work any hours [he] such real estate licensee chooses;
680-(5) The [broker or salesperson] real estate licensee shall be permitted
681-to work out of [his] such real estate licensee's own home or the office of
682-the person for whom services are performed;
683-(6) The [broker or salesperson] real estate licensee shall be free to
684-engage in outside employment;
685-(7) The person for whom the services are performed may provide
686-office facilities and supplies for the use of the [broker or salesperson]
687-real estate licensee, but [the broker or salesperson] such real estate
688-licensee shall otherwise pay [his] such real estate licensee's own
689-expenses, including, but not limited to, automobile, travel and
690-entertainment expenses; and
691-(8) The contract may be terminated by either party to such contract at
692-any time upon notice given to the other party to such contract.
693-Sec. 11. Section 20-314 of the general statutes is repealed and the
694-following is substituted in lieu thereof (Effective April 1, 2024):
695-(a) Licenses shall be granted under this chapter only to persons who
696-bear a good reputation for honesty, truthfulness and fair dealing and
697-who are competent to transact the business of a real estate broker or real
698-estate salesperson in such manner as to safeguard the interests of the Substitute House Bill No. 6769
699-
700-Public Act No. 23-84 23 of 60
701-
702-public.
703-(b) Each application for a license or for a renewal thereof shall be
704-made in writing, on such forms and in such manner as is prescribed by
705-the [Department of Consumer Protection and accompanied by such
706-evidence in support of such application as is prescribed by the
707-commission. The commission may require such information with regard
708-to an applicant as the commission deems desirable, with due regard to
709-the paramount interests of the public, as to the honesty, truthfulness,
710-integrity and competency of the applicant and, where the applicant is a
711-corporation, association or partnership, as to the honesty, truthfulness,
712-integrity and competency of the officers of such corporation or the
713-members of such association or partnership] department.
714-(c) In order to determine the competency of any applicant for a real
715-estate [broker's license or a real estate salesperson's] licensee's license,
716-the commission or Commissioner of Consumer Protection shall, on
717-payment of an application fee of one hundred twenty dollars by an
718-applicant for a real estate broker's license or an application fee of eighty
719-dollars by an applicant for a real estate salesperson's license, subject
720-such applicant to personal written examination as to the applicant's
721-competency to act as a real estate broker or real estate salesperson, as
722-the case may be. [Such] Each examination shall be prepared by the
723-[Department of Consumer Protection] department or by a national
724-testing service designated by the [Commissioner of Consumer
725-Protection] commissioner and shall be administered to applicants by the
726-[Department of Consumer Protection] department or by such testing
727-service at such times and places as the commissioner may deem
728-necessary. The commission or [Commissioner of Consumer Protection]
729-commissioner may waive the uniform portion of the written
730-examination requirement in the case of an applicant who has taken the
731-national testing service examination in another state within two years
732-from the date of application and has received a score deemed Substitute House Bill No. 6769
733-
734-Public Act No. 23-84 24 of 60
735-
736-satisfactory by the commission or [Commissioner of Consumer
737-Protection] commissioner. The [Commissioner of Consumer Protection]
738-commissioner shall adopt regulations, in accordance with chapter 54,
739-establishing passing scores for examinations. In addition to such
740-application fee, applicants taking the examination administered by a
741-national testing service shall be required to pay directly to such testing
742-service an examination fee covering the cost of such examination. Each
743-payment of such application fee shall entitle the applicant to take such
744-examination within the one-year period from the date of payment.
745-[(d) (1) (A) Each applicant applying for a real estate broker's license
746-on or after July 1, 2016, but before January 1, 2022, shall, before being
747-admitted to such examination, prove to the satisfaction of the
748-commission or the Commissioner of Consumer Protection that the
749-applicant (i) (I) has been actively engaged for at least two years as a
750-licensed real estate salesperson under the supervision of a licensed real
751-estate broker in this state, (II) has successfully completed a course
752-approved by the commission or commissioner in real estate principles
753-and practices of at least sixty classroom hours of study, (III) has
754-successfully completed a course approved by the commission or
755-commissioner in real estate legal compliance consisting of at least fifteen
756-classroom hours of study, (IV) has successfully completed a course
757-approved by the commission or commissioner in real estate brokerage
758-principles and practices consisting of at least fifteen classroom hours,
759-and (V) has successfully completed two elective courses, each consisting
760-of fifteen classroom hours of study, as prescribed by the commission or
761-commissioner, or (ii) has equivalent experience or education as
762-determined by the commission or commissioner.]
763-[(B)] (d) (1) Each applicant [applying for a real estate broker's license
764-on or after January 1, 2022,] shall, before being admitted to such
765-examination, prove to the satisfaction of the commission or the
766-Commissioner of Consumer Protection that the applicant [(i) (I)] (A) (i) Substitute House Bill No. 6769
767-
768-Public Act No. 23-84 25 of 60
769-
770-has been actively engaged as a licensed real estate salesperson under the
771-supervision of [a licensed real estate broker in this state for] a
772-supervising licensee, who is licensed in this state, for a minimum period
773-of three years immediately preceding the date the applicant filed such
774-applicant's application, during which period such salesperson engaged
775-in the real estate business for at least one thousand five hundred hours
776-[during the three years immediately preceding the date on which such
777-applicant filed such applicant's application,] and such supervising
778-[licensed real estate broker] licensee, or such supervising [licensed real
779-estate broker's] licensee's authorized representative, has certified the
780-accuracy of a record of such applicant's active engagement on a form
781-provided by such applicant to such supervising [licensed real estate
782-broker] licensee or authorized representative, [(II)] (ii) has successfully
783-completed a course approved by the commission or commissioner in
784-real estate principles and practices of at least sixty classroom hours of
785-study, [(III)] (iii) has successfully completed a course approved by the
786-commission or commissioner in real estate legal compliance consisting
787-of at least fifteen classroom hours of study, [(IV)] (iv) has successfully
788-completed a course approved by the commission or commissioner in
789-real estate brokerage principles and practices consisting of at least
790-fifteen classroom hours, [(V)] (v) has successfully completed two
791-elective courses, each consisting of fifteen classroom hours of study, as
792-prescribed by the commission or commissioner, and [(VI)] (vi) has
793-represented a seller, buyer, lessor or lessee in at least four real estate
794-transactions that closed during the three years immediately preceding
795-the date on which such applicant filed such applicant's application, or
796-[(ii)] (B) has equivalent experience or education as determined by the
797-commission or commissioner. Each supervising [licensed real estate
798-broker] licensee, or authorized representative of such supervising
799-[licensed real estate broker] licensee, shall certify the accuracy or
800-inaccuracy of a record provided by an applicant to such supervising
801-[licensed real estate broker] licensee or authorized representative under
802-subparagraph [(B)(i)(I)] (A)(i) of this subdivision not later than ninety Substitute House Bill No. 6769
803-
804-Public Act No. 23-84 26 of 60
805-
806-days after such applicant provides such record to such supervising
807-[licensed real estate broker] licensee or authorized representative.
808-(2) The commission or the [Commissioner of Consumer Protection]
809-commissioner shall waive the elective courses under subparagraph
810-[(A)(i)(V) or (B)(i)(V)] (A)(v) of subdivision (1) of this subsection if the
811-applicant has successfully completed at least twenty real estate
812-transactions within five years immediately preceding the date of
813-application. [As used in this subdivision, "real estate transaction" means
814-any transaction in which real property is legally transferred to another
815-party or in which a lease agreement is executed between a landlord and
816-a tenant.]
817-(3) Each applicant for a real estate salesperson's license shall, before
818-being admitted to such examination, prove to the satisfaction of the
819-commission or the [Commissioner of Consumer Protection ]
820-commissioner that the applicant (A) has successfully completed a course
821-approved by the commission or commissioner in real estate principles
822-and practices consisting of at least sixty classroom hours of study, or (B)
823-has equivalent experience or education as determined by the
824-commission or commissioner.
825-(e) The provisions of subsections (c) and (d) of this section shall not
826-apply to any renewal of a real estate broker's license, or a real estate
827-salesperson's license issued prior to October 1, 1973.
828-(f) All licenses issued under the provisions of this chapter shall expire
829-[annually] biennially. At the time of application for a real estate broker's
830-license, there shall be paid to the [commission] department, for each
831-individual applicant and for each [proposed active member or officer of
832-a firm, partnership, association or corporation] business entity, the sum
833-of [five hundred sixty-five] one thousand one hundred thirty dollars,
834-and for the [annual] biennial renewal thereof, the sum of [three hundred
835-seventy-five] seven hundred fifty dollars, except that for licenses Substitute House Bill No. 6769
836-
837-Public Act No. 23-84 27 of 60
838-
839-expiring on March 31, 2022, a prorated renewal fee shall be charged to
840-reflect the fact that the March 2022, renewal shall expire on November
841-30, 2023. At the time of application for a real estate salesperson's license,
842-there shall be paid to the [commission two hundred eighty-five]
843-department five hundred seventy dollars and for the [annual] biennial
844-renewal thereof the sum of [two hundred eighty-five] five hundred
845-seventy dollars. [Three] Six dollars of each such [annual] biennial
846-renewal fee shall be payable to the Real Estate Guaranty Fund
847-established pursuant to section 20-324a, as amended by this act. A real
848-estate broker's license issued to any [partnership, association or
849-corporation] business entity shall entitle the [individual designated in
850-the application, as provided in section 20-312] designated broker, upon
851-compliance with the terms of this chapter, but without the payment of
852-any further fee, to perform all of the acts of a real estate broker under
853-this chapter on behalf of such [partnership, association or corporation]
854-business entity. Any license which expires and is not renewed [pursuant
855-to this subsection] on or before the ninetieth day following the
856-expiration date of such license may be reinstated by the commission [,
857-if, not later than two years after the date of expiration, the former
858-licensee pays to the commission for] or department, in the commission's
859-or department's discretion, provided such license has expired for less
860-than three years and the former licensee (1) attests that such former
861-licensee did not work in this state in the occupation or profession in
862-which such former licensee was licensed while such former licensee's
863-license was lapsed, (2) pays the renewal fee due for such license for the
864-year in which such license is reinstated, and (3) completes any
865-continuing education required for such license for the year preceding
866-such reinstatement. If an applicant for reinstatement worked in this state
867-in the occupation or profession in which such applicant was formerly
868-licensed while such license was lapsed, the applicant shall pay all license
869-and late fees due and owing for the lapse period and demonstrate that
870-such applicant has completed all continuing education required for such
871-license for the year preceding such reinstatement. Such late fees shall be Substitute House Bill No. 6769
872-
873-Public Act No. 23-84 28 of 60
874-
875-assessed for each real estate broker's license [the sum] in the amount of
876-three hundred seventy-five dollars and for each real estate salesperson's
877-license [the sum] in the amount of two hundred eighty-five dollars for
878-each year or fraction thereof from the date of expiration of the previous
879-license to the date of payment for reinstatement. [, except that any] If a
880-license has lapsed for at least three years, the former licensee is ineligible
881-for reinstatement under this subsection and may apply for a new license.
882-Notwithstanding any contrary provision of this subsection, a former
883-licensee whose license expired after such former licensee entered
884-military service shall be reinstated without payment of any fee if an
885-application for reinstatement is filed with the commission [within two
886-years after the date of expiration] or department before the third
887-anniversary of such expiration date, and the former licensee provides
888-evidence that is sufficient to demonstrate to the commission or
889-department that such former licensee completed at least six hours of
890-continuing education for such license, including, but not limited to, the
891-mandatory continuing education required for such license, during the
892-calendar year preceding the date on which such application for
893-reinstatement is filed. Any such reinstated broker's license shall expire
894-on the next succeeding November thirtieth. [, except that any broker's
895-license that is reinstated before March 31, 2022, shall expire on March
896-31, 2022.] Any such reinstated real estate salesperson's license shall
897-expire on the next succeeding May thirty-first.
898-(g) [Any person whose application has been filed as provided in this
899-section and who is refused a license shall be given notice and afforded
900-an opportunity for hearing as provided in the regulations adopted by
901-the Commissioner of Consumer Protection.] Following a denial of a
902-license or license renewal application filed under this section, the
903-department shall send a notice to the applicant who filed such
904-application disclosing such denial and that such applicant may request
905-a hearing by submitting to the Commissioner of Consumer Protection a
906-written hearing request not later than thirty days after the date such Substitute House Bill No. 6769
907-
908-Public Act No. 23-84 29 of 60
909-
910-denial notice was sent to such applicant. If the applicant requests a
911-hearing during such thirty-day period, the department shall send a
912-notice to such applicant disclosing the grounds for such denial and
913-conduct a hearing concerning such denial in accordance with the
914-provisions of chapter 54. If the commissioner's denial is sustained after
915-such hearing, the applicant may file a new application for such license
916-or license renewal not sooner than one year after the date on which such
917-denial was sustained.
918-Sec. 12. Section 20-314a of the general statutes is repealed and the
919-following is substituted in lieu thereof (Effective April 1, 2024):
920-(a) The Commissioner of Consumer Protection, with the advice and
921-assistance of the commission, may adopt regulations, in accordance
922-with chapter 54, relating to the approval of schools offering prelicensing
923-and continuing education courses, [in real estate principles and practice
924-and related subjects,] the content of such courses and the advertising to
925-the public of the services [of] offered by such schools. Such regulations
926-shall not require [(1)] approval of instructors at such schools. [, or (2) a
927-course to be conducted in a classroom location approved for such use
928-by a local fire marshal provided the course is conducted in a hotel,
929-restaurant or other public building or a place of public assembly, as
930-defined in section 19-13-B105 of the regulations of Connecticut state
931-agencies.] No school may be disapproved solely because the school's
932-courses are offered or taught by electronic means, and no course may be
933-disapproved solely because the course is offered or taught by electronic
934-means if such course satisfies the requirements established in section 4
935-of this act.
936-(b) The commission or department may exempt any applicant for a
937-real estate broker's license from the requirements concerning experience
938-under the provisions of subsection (d) of section 20-314, as amended by
939-this act, if the commission or department determines that such applicant
940-is unable to meet such requirements solely because such applicant has Substitute House Bill No. 6769
941-
942-Public Act No. 23-84 30 of 60
943-
944-been subjected to discrimination based on race, creed or color, which
945-discrimination interfered with such applicant's ability to meet such
946-requirements.
947-Sec. 13. Subsections (b) and (c) of section 20-316 of the general statutes
948-are repealed and the following is substituted in lieu thereof (Effective
949-April 1, 2024):
950-(b) No license under this chapter shall be issued by the [Department
951-of Consumer Protection] department to any applicant (1) whose
952-application for a license as a real estate [broker or real estate salesperson]
953-licensee has, within one year prior to the date of [his] such applicant's
954-application under this chapter, been rejected in this state, in any other
955-state or in the District of Columbia, or (2) whose license as a real estate
956-[broker or real estate salesperson] licensee has, within one year prior to
957-the date of [his] such applicant's application under this chapter, been
958-revoked in this state, in any other state or in the District of Columbia.
959-(c) No real estate license [as a real estate broker or real estate
960-salesperson] shall be issued under this chapter to any person who [has
961-not attained the age of] is younger than eighteen years of age.
962-Sec. 14. Section 20-317 of the general statutes is repealed and the
963-following is substituted in lieu thereof (Effective April 1, 2024):
964-(a) A person licensed in another state [as a real estate broker or
965-salesperson] to engage in the real estate business may become a real
966-estate [broker or real estate salesperson] licensee in this state by
967-conforming to all of the provisions of this chapter. The commission or
968-Commissioner of Consumer Protection shall recognize a current, valid
969-license issued to a currently practicing, competent real estate [broker or
970-real estate salesperson] professional engaging in the real estate business
971-in, and recognized by, another state as satisfactorily qualifying [the
972-broker or salesperson] such real estate professional for a license as a real Substitute House Bill No. 6769
973-
974-Public Act No. 23-84 31 of 60
975-
976-estate [broker or real estate salesperson] licensee under this chapter,
977-provided (1) the laws of the state in which [the broker or salesperson]
978-such real estate professional is licensed require that applicants for
979-licenses as real estate [brokers and real estate salespersons] licensees
980-establish their competency by written examinations, [and allow licenses
981-to be issued to residents of the state of Connecticut, licensed under this
982-chapter, without examination,] (2) the licensure requirements of such
983-state are substantially similar to or higher than those of this state, and
984-(3) [the broker or salesperson] such real estate professional has no
985-disciplinary proceeding or unresolved complaint pending against [the
986-broker or salesperson] such real estate professional. If [the] an applicant
987-real estate professional is licensed in a state that does not have such
988-requirements, such applicant real estate professional shall be required
989-to pass the Connecticut portion of the real estate examination.
990-(b) [Every applicant licensed in another state shall file an irrevocable
991-consent that suits and actions may be commenced against such
992-applicant in the proper court in any judicial district of the state in which
993-a cause of action may arise or in which the plaintiff may reside, by the
994-service of any process or pleading, authorized by the laws of this state,
995-on the chairperson of the commission, such consent stipulating and
996-agreeing that such service of such process or pleading shall be taken and
997-held in all courts to be as valid and binding as if service had been made
998-upon such applicant in the state of Connecticut. If any process or
999-pleadings under this chapter are served upon the chairperson, it shall
1000-be by duplicate copies, one of which shall be filed in the office of the
1001-commission, and the other immediately forwarded by registered or
1002-certified mail, to the applicant against whom such process or pleadings
1003-are directed, at the last-known address of such applicant as shown by
1004-the records of the department. No default in any such proceedings or
1005-action shall be taken unless it appears by affidavit of the chairperson of
1006-the commission that a copy of the process or pleading was mailed to the
1007-defendant as required by this subsection, and no judgment by default Substitute House Bill No. 6769
1008-
1009-Public Act No. 23-84 32 of 60
1010-
1011-shall be taken in any such action or proceeding within twenty days after
1012-the date of mailing of such process or pleading to the out-of-state
1013-defendant.] A real estate professional who satisfies the requirements
1014-established in subsection (a) of this section may apply for licensure in
1015-this state as set forth in section 21a-11b.
1016-Sec. 15. Section 20-319 of the general statutes is repealed and the
1017-following is substituted in lieu thereof (Effective April 1, 2024):
1018-(a) The commission shall authorize the [Department of Consumer
1019-Protection] department to issue [an annual] a two-year renewal license
1020-to any applicant who possesses the qualifications specified in, and
1021-[otherwise] has otherwise complied with the provisions of, this chapter
1022-and any regulation adopted [under] pursuant to this chapter. The
1023-commission shall authorize [said] the department to issue [an annual] a
1024-two-year renewal of a real estate broker's license to any business entity
1025-licensed pursuant to subsection (b) of section 20-312, as amended by this
1026-act, provided such business entity: (1) Was so licensed as of September
1027-30, 2005, notwithstanding the fact such business entity does not meet the
1028-requirements for publicly traded corporations required by subdivision
1029-[(3)] (5) of subsection (b) of section 20-312, as amended by this act, or (2)
1030-changes [its] such business entity's designated [real estate] broker
1031-pursuant to subsection (c) of section 20-312, as amended by this act.
1032-(b) There [is] are hereby established [an annual] two-year renewal
1033-[license] licenses to be issued by the [Department of Consumer
1034-Protection. Persons licensed in accordance with the provisions of this
1035-chapter] department to real estate licensees. Each real estate licensee
1036-who files an application with the department seeking a two-year
1037-renewal license shall fulfill a continuing education requirement.
1038-[Applicants] Each applicant for [an annual] a two-year renewal license
1039-[for real estate brokers or real estate salespersons] shall, in addition to
1040-the other requirements imposed by the provisions of this chapter, [in
1041-any even-numbered year,] submit to the commission or department Substitute House Bill No. 6769
1042-
1043-Public Act No. 23-84 33 of 60
1044-
1045-proof [of] that such applicant is in compliance with the continuing
1046-education requirements [of] established in this [subsection to the
1047-commission. Each] section. Each real estate licensee shall pay [an annual
1048-four-dollar] a biennial eight-dollar continuing education processing fee
1049-to cover the administrative costs associated with [the review] reviewing
1050-and auditing [of] continuing education submissions. The continuing
1051-education requirement for real estate licensees may be satisfied by
1052-successful completion of any of the following during the two-year
1053-period preceding [such] a renewal: (1) A course or courses, approved by
1054-the commission or department, of continuing education in current real
1055-estate practices and licensing laws, including, but not limited to,
1056-practices and laws concerning common int erest communities,
1057-consisting of not less than twelve hours of classroom study; or (2) a
1058-written examination prepared and administered by either the
1059-[Department of Consumer Protection] department, or by a national
1060-testing service approved by the department, which demonstrates a
1061-knowledge of current real estate practices and licensing laws; or (3)
1062-equivalent continuing educational experience or study as determined
1063-by regulations adopted pursuant to subsection (d) of this section. An
1064-applicant for examination under subdivision (2) of this subsection shall
1065-pay the required examination fee to the national testing service, if
1066-administered by such testing service, or to the [Department of
1067-Consumer Protection] department, if administered by the department.
1068-(c) If the commission or department refuses to grant [an annual] a
1069-two-year renewal license, the licensee or applicant, upon written notice
1070-received as provided for in this chapter, may have recourse to any of the
1071-remedies provided by sections 20-314, as amended by this act, and 20-
1072-322.
1073-(d) The Commissioner of Consumer Protection, in consultation with
1074-the commission, shall adopt regulations, in accordance with chapter 54,
1075-[concerning the approval of schools, institutions or organizations Substitute House Bill No. 6769
1076-
1077-Public Act No. 23-84 34 of 60
1078-
1079-offering courses in current real estate practices and licensing laws,
1080-including, but not limited to, practices and laws concerning common
1081-interest communities, and the content of such courses] to establish
1082-continuing education requirements. Such regulations shall include, but
1083-not be limited to: (1) Specifications for meeting equivalent continuing
1084-educational experience or study; and (2) exceptions from continuous
1085-education requirements for reasons of health or instances of individual
1086-hardship. [No school, institution or organization that offers a course in
1087-current real estate practices and licensing laws may be disapproved
1088-solely because its courses are offered or taught by electronic means, and
1089-no course may be disapproved solely because it is offered or taught by
1090-electronic means.]
1091-(e) If a real estate licensee fails to satisfy the continuing education
1092-requirements established pursuant to this section for any two-year
1093-license period, the real estate licensee shall pay to the department a fee
1094-in the amount of:
1095-(1) Three hundred fifteen dollars if such licensee reports to the
1096-department, in a form and manner prescribed by the department, that
1097-such real estate licensee failed to satisfy such continuing education
1098-requirements during such license period but completed such continuing
1099-education requirements not later than two months after such license
1100-period expired; or
1101-(2) Six hundred twenty-five dollars if such licensee reports to the
1102-department, in a form and manner prescribed by the department, that
1103-such real estate licensee failed to satisfy such continuing education
1104-requirements during such license period but completed such continuing
1105-education requirements more than two months after such license period
1106-expired but not later than four months after such license period expired.
1107-Sec. 16. Section 20-319a of the general statutes is repealed and the
1108-following is substituted in lieu thereof (Effective April 1, 2024): Substitute House Bill No. 6769
1109-
1110-Public Act No. 23-84 35 of 60
1111-
1112-(a) [Any] Each licensed real estate salesperson or associate broker
1113-who transfers [his employment from one broker to another or his] such
1114-real estate salesperson's or associate broker's affiliation with a broker [as
1115-an independent contractor] or property owner shall register such
1116-transfer with, and pay a registration fee of twenty-five dollars to, the
1117-[commission] department.
1118-(b) A fee of twenty-five dollars shall be paid to the [commission]
1119-department for the issuance of a license certification.
1120-(c) A fee of twenty-five dollars shall be paid to the [Department of
1121-Consumer Protection] department for any change made to, or transfer
1122-of, a team's registration after the team files an initial registration with
1123-the department pursuant to [subdivision (1) of] subsection (e) of section
1124-20-312, as amended by this act.
1125-(d) If a team transfers to a new supervising licensee, the new
1126-supervising licensee shall electronically update the team's registration
1127-information with the department not later than fourteen calendar days
1128-after such transfer.
1129-Sec. 17. Section 20-320 of the general statutes is repealed and the
1130-following is substituted in lieu thereof (Effective April 1, 2024):
1131-(a) The [Department of Consumer Protection] department may [,
1132-upon the request of the commission or upon the verified complaint in
1133-writing of any person, if such complaint, or such complaint together
1134-with evidence, documentary or otherwise, presented in connection with
1135-such complaint, shall make out a prima facie case,] investigate the
1136-actions of any [real estate broker or real estate salesperson or any person
1137-who assumes to act in any of such capacities] person who engages in the
1138-real estate business or offers real estate courses within this state. The
1139-commission or department may temporarily suspend or permanently
1140-revoke any license or registration issued under the provisions of this Substitute House Bill No. 6769
1141-
1142-Public Act No. 23-84 36 of 60
1143-
1144-chapter and, in addition to or in lieu of such suspension or revocation,
1145-may, in [its] the commission's or department's discretion, impose a fine
1146-of not more than [two] five thousand dollars per violation at any time
1147-when, after proceedings as provided in section 20-321, the commission
1148-or department finds that the real estate licensee has by false or
1149-fraudulent misrepresentation obtained a license or registration or that
1150-the real estate licensee [is guilty of any of the following] has: (1)
1151-[Making] Made any material misrepresentation; (2) [making] made any
1152-false promise of a character likely to influence, persuade or induce; (3)
1153-[acting] acted as an agent for more than one party in a transaction
1154-without the knowledge of all parties for whom the real estate licensee
1155-[acts] acted; (4) [representing or attempting] represented, or attempted
1156-to represent, a real estate broker, other than the real estate licensee's
1157-[employer or the broker with whom the licensee is affiliated] affiliated
1158-or supervising licensee, without the express knowledge and consent of
1159-[the] such real estate licensee's [employer or] affiliated [broker] or
1160-supervising licensee; (5) [failing] failed, within a reasonable time, to
1161-account for or remit any moneys [coming] which came into the real
1162-estate licensee's possession and which belong to others; (6) [entering]
1163-entered into an exclusive listing contract or buyer agency contract which
1164-contains a fixed termination date if such contract also provides for an
1165-automatic continuation of the period of such contract beyond such date;
1166-(7) [failing] failed to deliver immediately a copy of any instrument to
1167-any party or parties executing [the] such instrument, where such
1168-instrument has been prepared by the real estate licensee or under [the]
1169-such real estate licensee's supervision and where such instrument
1170-relates to the employment of [the] such real estate licensee or to any
1171-matters pertaining to the consummation of a lease, or the purchase, sale
1172-or exchange of real property or any other type of real estate transaction
1173-in which [the] such real estate licensee may participate as a [broker or a
1174-salesperson] real estate licensee; (8) [conviction] been convicted, in a
1175-court of competent jurisdiction, of forgery, embezzlement, obtaining
1176-money under false pretenses, larceny, extortion, conspiracy to defraud Substitute House Bill No. 6769
1177-
1178-Public Act No. 23-84 37 of 60
1179-
1180-[,or other like] or a similar offense, [or offenses,] provided suspension
1181-or revocation under this subdivision shall be subject to the provisions of
1182-section 46a-80; (9) [collecting] collected compensation or a commission
1183-in advance of services to be performed and [failing] failed, upon
1184-demand of the person [paying the] who paid such compensation or [the]
1185-commission, to render an accounting of the use of such [money]
1186-compensation or commission; (10) [commingling] commingled funds of
1187-others with the real estate licensee's own funds, or [failing] failed to keep
1188-funds of others in an escrow or [trustee] trust account; (11) engaged in
1189-any act or conduct which constitutes dishonest, fraudulent or improper
1190-dealings; (12) [failing] failed to provide the disclosures required by
1191-section 20-325c, [;] as amended by this act; or (13) [a violation of] violated
1192-any provision of this chapter or any regulation adopted under this
1193-chapter. [Any such suspension or revocation of a license or imposition
1194-of a fine by the commission shall be a proposed final decision and
1195-submitted to the commissioner in accordance with the provisions of
1196-subsection (b) of section 21a-7.] Any fine collected pursuant to this
1197-section shall be deposited in the Real Estate Guaranty Fund established
1198-pursuant to section 20-324a, as amended by this act.
1199-(b) No person shall be relieved of responsibility for the conduct or
1200-actions of such person's agents, employees or officers by reason of such
1201-person's compliance with the provisions of this chapter. No person who
1202-engages in the real estate business shall be relieved of responsibility for
1203-such person's own conduct or actions by reason of such person's
1204-employment by, or association with, any real estate licensee or
1205-development owner.
1206-Sec. 18. Section 20-320a of the general statutes is repealed and the
1207-following is substituted in lieu thereof (Effective April 1, 2024):
1208-[(a)] No real estate [broker or real estate salesperson] licensee, no
1209-person affiliated with [such broker or salesperson] a real estate licensee,
1210-and no person engaging in the real estate business may receive a fee, Substitute House Bill No. 6769
1211-
1212-Public Act No. 23-84 38 of 60
1213-
1214-commission or other form of referral fee for the referral of any buyer of
1215-real property to (1) an attorney-at-law admitted to practice in this state
1216-or any person affiliated with such attorney or (2) any mortgage broker,
1217-any lender, as defined in subdivision (5) of section 49-31d, or any person
1218-affiliated with such mortgage broker or lender.
1219-[(b) The Department of Consumer Protection may, upon the request
1220-of the commission or upon the verified complaint in writing of any
1221-person, if such complaint, or such complaint together with evidence,
1222-documentary or otherwise, presented in connection with such
1223-complaint, shall make out a prima facie case, investigate the actions of
1224-any real estate broker or real estate salesperson or any person who
1225-assumes to act in any of such capacities within this state. The
1226-commission may temporarily suspend or permanently revoke any
1227-license issued under the provisions of this chapter, and, in addition to
1228-or in lieu of such suspension or revocation, may, in its discretion, impose
1229-a fine of not more than one thousand dollars for the first offense at any
1230-time when, after proceedings as provided in section 20-321, the
1231-commission finds that the licensee is guilty of violating any of the
1232-provisions of subsection (a) of this section. Any such suspension or
1233-revocation of a license or imposition of a fine by the commission shall
1234-be a proposed final decision and submitted to the commissioner in
1235-accordance with the provisions of subsection (b) of section 21a-7.]
1236-Sec. 19. Subsection (a) of section 20-320b of the general statutes is
1237-repealed and the following is substituted in lieu thereof (Effective April
1238-1, 2024):
1239-(a) A real estate [broker or real estate salesperson licensed under this
1240-chapter] licensee shall not influence residential real estate appraisals.
1241-[For the purposes of this section, "influence residential real estate
1242-appraisals" includes, but is not limited to, refusal or intentional failure
1243-to refer a homebuyer, or encouraging other real estate brokers or real
1244-estate salespersons not to refer a homebuyer, to a mortgage broker, as Substitute House Bill No. 6769
1245-
1246-Public Act No. 23-84 39 of 60
1247-
1248-defined in section 36a-760, or a lender, as defined in section 36a-760,
1249-based solely on the fact that the mortgage broker or lender uses an
1250-appraiser who has provided an appraisal reflecting a fair market value
1251-estimate that was less than the sale contract price.]
1252-Sec. 20. Section 20-323 of the general statutes is repealed and the
1253-following is substituted in lieu thereof (Effective April 1, 2024):
1254-Any real estate licensee under this chapter who is convicted of a
1255-violation of any of the offenses enumerated in subdivision (8) of
1256-subsection (a) of section 20-320, as amended by this act, may incur a
1257-forfeiture of [his or her] such real estate licensee's license and all moneys
1258-that may have been paid for such license. The clerk of any court in which
1259-such conviction has been rendered shall forward to the commission
1260-without charge a certified copy of such conviction. The [commissioner]
1261-Commissioner of Consumer Protection may revoke such licensee's
1262-license after proceedings as provided in section 20-321. Such notice shall
1263-be conclusive of the revocation of such license. Application for
1264-reinstatement of such license shall be subject to the provisions of section
1265-46a-80.
1266-Sec. 21. Section 20-324a of the general statutes is repealed and the
1267-following is substituted in lieu thereof (Effective April 1, 2024):
1268-The commission shall establish and maintain a Real Estate Guaranty
1269-Fund from which, subject to the provisions of this section and sections
1270-[20-324a] 20-324b to [20-324j] 20-324i, inclusive, as amended by this act,
1271-any person aggrieved by any action of a real estate [broker or real estate
1272-salesperson] licensee, duly licensed in this state under section 20-312, as
1273-amended by this act, by reason of the embezzlement of money or
1274-property, or money or property unlawfully obtained from any person
1275-by false pretenses, artifice or forgery or by reason of any fraud,
1276-misrepresentation or deceit by or on the part of any such real estate
1277-[broker or real estate salesperson] licensee or the unlicensed employee Substitute House Bill No. 6769
1278-
1279-Public Act No. 23-84 40 of 60
1280-
1281-of any such real estate [broker] licensee, may recover, upon approval by
1282-the commission of an application brought pursuant to the provisions of
1283-section 20-324e, as amended by this act, compensation in an amount not
1284-exceeding in the aggregate the sum of twenty-five thousand dollars in
1285-connection with any one real estate transaction or claim, regardless of
1286-the number of persons aggrieved or parcels of real estate involved in
1287-such real estate transaction or claim.
1288-Sec. 22. Section 20-324b of the general statutes is repealed and the
1289-following is substituted in lieu thereof (Effective April 1, 2024):
1290-[Any person who receives a real estate broker's or real estate
1291-salesperson's license under this chapter for the first time shall] Each real
1292-estate licensee shall, upon application for a license under this chapter,
1293-pay an additional one-time fee of twenty dollars in addition to all other
1294-fees payable, which additional fee shall be credited to the Real Estate
1295-Guaranty Fund. The Real Estate Guaranty Fund shall also be credited as
1296-provided in sections 20-314, as amended by this act, and 20-320, as
1297-amended by this act.
1298-Sec. 23. Section 20-324d of the general statutes is repealed and the
1299-following is substituted in lieu thereof (Effective April 1, 2024):
1300-No application to recover compensation under sections 20-324a to
1301-[20-324j] 20-324i, inclusive, as amended by this act, which might
1302-subsequently result in an order for collection from the Real Estate
1303-Guaranty Fund shall be brought later than two years from the final
1304-determination of, or expiration of time for appeal in connection with,
1305-any judgment.
1306-Sec. 24. Subsections (a) to (f), inclusive, of section 20-324e of the
1307-general statutes are repealed and the following is substituted in lieu
1308-thereof (Effective April 1, 2024):
1309-(a) When any aggrieved person commences any action for a Substitute House Bill No. 6769
1310-
1311-Public Act No. 23-84 41 of 60
1312-
1313-judgment which may result in collection from the Real Estate Guaranty
1314-Fund, the aggrieved person shall notify the commission or department
1315-in writing to this effect at the time of the commencement of such action.
1316-Such written notice shall toll the time for making application to the
1317-commission pursuant to section 20-324d, as amended by this act. The
1318-commission or department shall have the right to enter an appearance,
1319-intervene in or defend any such action and may waive the required
1320-written notice for good cause shown.
1321-(b) When any aggrieved person recovers a valid judgment in the
1322-Superior Court against any real estate [broker or real estate salesperson]
1323-licensee or the unlicensed employee of any such real estate [broker]
1324-licensee for loss or damages sustained by reason of the embezzlement
1325-of money or property, or money or property unlawfully obtained from
1326-any person by false pretenses, artifice or forgery or by reason of any
1327-fraud, misrepresentation or deceit by or on the part of such real estate
1328-[broker or salesperson] licensee or the unlicensed employee of any such
1329-real estate broker, such aggrieved person may upon the final
1330-determination of, or expiration of time for appeal in connection with,
1331-any judgment, apply to the commission for an order directing payment
1332-out of the Real Estate Guaranty Fund of the amount unpaid upon the
1333-judgment, subject to the limitations stated in section 20-324a, as
1334-amended by this act, and the limitations specified in this section.
1335-(c) The commission shall proceed upon such application in a
1336-summary manner, and, upon the hearing thereof, the aggrieved person
1337-shall be required to show that: (1) [He] Such aggrieved person is not a
1338-spouse of the debtor or the personal representative of such spouse; (2)
1339-[he] such aggrieved person has complied with all the requirements of
1340-this section; (3) [he] such aggrieved person has obtained a judgment as
1341-provided in subsection (b) of this section, stating the amount thereof and
1342-the amount owing thereon at the date of the application; (4) [he] such
1343-aggrieved person has caused to be issued a writ of execution upon the Substitute House Bill No. 6769
1344-
1345-Public Act No. 23-84 42 of 60
1346-
1347-judgment and the officer executing the same has made a return showing
1348-that no personal or real property of the judgment debtor liable to be
1349-levied upon in satisfaction of the judgment could be found, or that the
1350-amount realized on the sale of them or of such of them as were found,
1351-under the execution, was insufficient to satisfy the judgment, stating the
1352-amount so realized and the balance remaining due on the judgment
1353-after application thereon of the amount realized; (5) [he] such aggrieved
1354-person has made all reasonable searches and inquiries to ascertain
1355-whether the judgment debtor possesses real or personal property or
1356-other assets, liable to be sold or applied in satisfaction of the judgment;
1357-and (6) that by such search [he] such aggrieved person has discovered
1358-no personal or real property or other assets liable to be sold or applied,
1359-or that [he] such aggrieved person has discovered certain of them,
1360-describing them, owned by the judgment debtor and liable to be so
1361-applied, and that [he] such aggrieved person has taken all necessary
1362-action and proceedings for the realization thereof, and that the amount
1363-thereby realized was insufficient to satisfy the judgment, stating the
1364-amount so realized and the balance remaining due on the judgment
1365-after application of the amount realized.
1366-(d) Whenever the aggrieved person satisfies the commission that it is
1367-not practicable to comply with one or more of the requirements
1368-enumerated in subdivisions (4), (5) and (6) of subsection (c) of this
1369-section and that [the] such aggrieved person has taken all reasonable
1370-steps to collect the amount of the judgment or the unsatisfied part
1371-thereof and has been unable to collect the same, the commission may in
1372-its discretion waive such requirements.
1373-(e) The commission shall order payment from the Real Estate
1374-Guaranty Fund of any sum it shall find to be payable upon the claim,
1375-pursuant to the provisions of and in accordance with the limitations
1376-contained in this section and section 20-324a, as amended by this act, if
1377-the commission is satisfied, upon the hearing, of the truth of all matters Substitute House Bill No. 6769
1378-
1379-Public Act No. 23-84 43 of 60
1380-
1381-required to be shown by the aggrieved person by subsection (c) of this
1382-section and that [the] such aggrieved person has fully pursued and
1383-exhausted all remedies available to [him] such aggrieved person for
1384-recovering the amount awarded by the judgment of the court.
1385-(f) If the commission pays from the Real Estate Guaranty Fund any
1386-amount in settlement of a claim or toward satisfaction of a judgment
1387-against a [licensed real estate broker or real estate salesperson] real
1388-estate licensee pursuant to an order under subsection (e) of this section,
1389-such [broker or salesperson] real estate licensee shall not be eligible to
1390-receive a new license until [he] such real estate licensee has repaid in
1391-full, plus interest at a rate to be determined by the commission and
1392-which shall reflect current market rates, the amount paid from the fund
1393-on [his] such real estate licensee's account. A discharge in bankruptcy
1394-shall not relieve a person from the penalties and disabilities provided in
1395-this subsection.
1396-Sec. 25. Section 20-324i of the general statutes is repealed and the
1397-following is substituted in lieu thereof (Effective April 1, 2024):
1398-The Commissioner of Consumer Protection, with the advice and
1399-assistance of the commission, may adopt regulations, in accordance
1400-with chapter 54, to carry out the provisions of sections 20-324a to [20-
1401-324j] 20-324h, inclusive, as amended by this act.
1402-Sec. 26. Section 20-325 of the general statutes is repealed and the
1403-following is substituted in lieu thereof (Effective April 1, 2024):
1404-Any person who engages in the real estate business [of a real estate
1405-broker or real estate salesperson] without obtaining a license as
1406-provided in this chapter shall be fined not more than one thousand
1407-dollars per violation or imprisoned not more than six months or both,
1408-and shall be ineligible to obtain a license for one year from the date of
1409-conviction of such offense, except that the commission or Commissioner Substitute House Bill No. 6769
1410-
1411-Public Act No. 23-84 44 of 60
1412-
1413-of Consumer Protection may grant a license to such person within such
1414-one-year period upon application and after a hearing on such
1415-application.
1416-Sec. 27. Subsection (a) of section 20-325a of the general statutes is
1417-repealed and the following is substituted in lieu thereof (Effective April
1418-1, 2024):
1419-(a) [No] Except for an out-of-state real estate licensee who is an
1420-individual and seeking to recover agreed compensation authorized
1421-under subsection (e) of section 20-325l, as amended by this act, no
1422-person who is not licensed under the provisions of this chapter, and who
1423-was not so licensed at the time the person performed the acts or
1424-rendered the services for which recovery is sought, shall commence or
1425-bring any action in any court of this state, after October 1, 1971, to
1426-recover any commission, compensation or other payment with respect
1427-to any act done or service rendered by the person, the doing or
1428-rendering of which is prohibited under the provisions of this chapter
1429-except by persons duly licensed under this chapter.
1430-Sec. 28. Section 20-325c of the general statutes is repealed and the
1431-following is substituted in lieu thereof (Effective April 1, 2024):
1432-[(a) As used in this section "residential real property" means one to
1433-four-family residential real estate located in this state.]
1434-[(b)] (a) Notwithstanding any provision of the general statutes, [to the
1435-contrary,] no real estate [broker or real estate salesperson] licensee, and
1436-no person affiliated with such [broker or salesperson] real estate
1437-licensee, who receives a fee, commission or other valuable consideration
1438-for the sale of residential real property, may receive a fee, commission
1439-or other valuable consideration for negotiating, soliciting, arranging,
1440-placing or finding a first mortgage loan for the buyer in connection with
1441-the same sale unless disclosure is made in accordance with the Substitute House Bill No. 6769
1442-
1443-Public Act No. 23-84 45 of 60
1444-
1445-provisions of subsection [(c)] (b) of this section. Any fee, commission or
1446-other valuable consideration received by such [broker or salesperson]
1447-real estate licensee for negotiating, soliciting, arranging, placing or
1448-finding a first mortgage loan shall (1) be related to the services actually
1449-performed, as determined by the Banking Commissioner by regulations
1450-adopted pursuant to chapter 54, (2) not be imposed for the referral of
1451-the buyer to the mortgage lender by such [broker or salesperson] real
1452-estate licensee, and (3) be paid directly to [the broker or salesperson]
1453-such real estate licensee by the buyer rather than from the mortgage loan
1454-proceeds at the time of closing.
1455-[(c)] (b) Any disclosure made pursuant to subsection [(b)] (a) of this
1456-section shall be made to and acknowledged by the buyer prior to the
1457-time the buyer signs a contract with the real estate [broker or
1458-salesperson] licensee for mortgage brokering services. Such disclosure
1459-shall include the following notice printed in at least ten-point boldface
1460-capital letters:
1461-I UNDERSTAND THAT THE REAL ESTATE BROKER OR
1462-SALESPERSON IN THIS TRANSACTION HAS OFFERED TO ASSIST
1463-ME IN FINDING A MORTGAGE LOAN. ADDITIONALLY, I
1464-UNDERSTAND THAT THIS REAL ESTATE BROKER OR
1465-SALESPERSON DOES NOT REPRESENT ANY PARTICULAR
1466-MORTGAGE LENDER AND WILL ATTEMPT TO OBTAIN THE BEST
1467-TERMS AVAILABLE WITHIN THE MORTGAGE LOAN MARKET
1468-FOR MY SPECIFIC HOME FINANCING NEEDS. IF THE REAL
1469-ESTATE BROKER OR SALESPERSON DOES NOT FULFILL HIS
1470-FIDUCIARY OBLIGATION I MAY FILE A COMPLAINT WITH THE
1471-DEPARTMENT OF BANKING. I ALSO UNDERSTAND THAT I MAY
1472-ATTEMPT TO FIND A MORTGAGE LOAN TO FINANCE THE
1473-PURCHASE OF MY HOME WITHOUT THE ASSISTANCE OF THE
1474-REAL ESTATE BROKER OR SALESPERSON IN WHICH CASE I WILL
1475-NOT BE OBLIGATED TO PAY A FEE TO THE REAL ESTATE BROKER Substitute House Bill No. 6769
1476-
1477-Public Act No. 23-84 46 of 60
1478-
1479-OR SALESPERSON.
1480-[(d)] (c) No mortgage lender may refuse to close a mortgage loan
1481-secured by residential real property because the buyer has not paid a
1482-fee, commission or other valuable consideration to a real estate [broker
1483-or salesperson] licensee for negotiating, soliciting, arranging, placing or
1484-finding the first mortgage loan.
1485-Sec. 29. Section 20-325d of the general statutes is repealed and the
1486-following is substituted in lieu thereof (Effective April 1, 2024):
1487-(a) [On and after January 1, 2018, a real estate broker or real estate
1488-salesperson licensed under this chapter] A real estate licensee who
1489-represents a seller, lessor, prospective purchaser or lessee in a real estate
1490-transaction shall, upon request, disclose [,] in writing [,] the identity of
1491-[his or her] the real estate licensee's client to any party to the transaction
1492-who is not represented by another real estate [broker or real estate
1493-salesperson licensed under this chapter. The real estate broker or real
1494-estate salesperson shall make the disclosure required under this section:
1495-(1) If the transaction concerns residential real property, as defined in
1496-section 20-325c, (A) at the beginning of the first personal meeting
1497-concerning the prospective purchaser's or lessee's specific needs in the
1498-transaction, or (B) at the beginning of the first personal meeting with the
1499-seller or lessor concerning the seller's or lessor's real property; or (2) if
1500-the transaction is a commercial real estate transaction, as defined in
1501-section 20-311, before the prospective purchaser or lessee signs the
1502-purchase contract or lease. Such disclosure shall be signed by a
1503-prospective purchaser or lessee and attached to any offer or agreement
1504-to purchase or lease signed by a prospective purchaser or lessee]
1505-licensee.
1506-(b) Not later than the first personal meeting, a real estate licensee
1507-shall: (1) Disclose in writing to a prospective party (A) the types of
1508-agency relationships available to the prospective party, and (B) that the Substitute House Bill No. 6769
1509-
1510-Public Act No. 23-84 47 of 60
1511-
1512-prospective party should not share confidential information with the
1513-real estate licensee until such prospective party has entered into a
1514-written representation agreement with such real estate licensee; and (2)
1515-for residential real estate transactions, provide to a prospective party
1516-information on fair housing discrimination, including a description of
1517-federal and state fair housing laws, protected classes, where to obtain
1518-additional information and available resources. The disclosures
1519-required pursuant to this subsection may be delivered electronically to
1520-the prospective party.
1521-(c) The Commissioner of Consumer Protection shall adopt such
1522-regulations, in accordance with chapter 54, as the commissioner deems
1523-necessary to carry out the provisions of this section.
1524-Sec. 30. Section 20-325f of the general statutes is repealed and the
1525-following is substituted in lieu thereof (Effective April 1, 2024):
1526-No real estate broker shall make any unilateral offer of subagency or
1527-agree to compensate, appoint, employ, cooperate with or otherwise
1528-affiliate with a subagent for the sale or purchase of real property.
1529-[without the informed written consent of the person whom the real
1530-estate broker represents. Such written consent shall contain the name
1531-and real estate license number of the real estate broker to be appointed
1532-as the subagent and shall contain a statement notifying the person
1533-whom the real estate broker represents that the law imposes vicarious
1534-liability on the principal for the acts of the subagent.]
1535-Sec. 31. Section 20-325h of the general statutes is repealed and the
1536-following is substituted in lieu thereof (Effective April 1, 2024):
1537-[(a)] No real estate licensee shall: (1) Reveal any confidential
1538-information concerning a prospective party or a person whom the real
1539-estate licensee represented either as an agent, designated buyer agent or
1540-[a] designated seller agent; (2) use any confidential information Substitute House Bill No. 6769
1541-
1542-Public Act No. 23-84 48 of 60
1543-
1544-concerning [that] such prospective party or person to [the] such
1545-prospective party's or person's disadvantage; or (3) use any confidential
1546-information concerning [that] such prospective party or person for [the]
1547-such real estate [broker's or real estate salesperson's] licensee's
1548-advantage or the advantage of a third party, except (A) as required by
1549-legal process, (B) as necessary to defend [the] such real estate [broker or
1550-real estate salesperson] licensee from allegations of wrongful or
1551-negligent conduct, or (C) as necessary to prevent the commission of a
1552-crime.
1553-[(b) As used in this section, "confidential information" means facts
1554-concerning a person's assets, liabilities, income, expenses, motivations
1555-to purchase, rent or sell real property and previous offers received or
1556-made to purchase or lease real property which are not authorized by the
1557-client, a matter of general knowledge, part of a public record or file to
1558-which access is authorized pursuant to section 1-210 or otherwise
1559-subject to disclosure under any other provision of the general statutes
1560-or any regulation of Connecticut state agencies.]
1561-Sec. 32. Section 20-325l of the general statutes is repealed and the
1562-following is substituted in lieu thereof (Effective April 1, 2024):
1563-[(a) As used in this section: (1) "Licensed broker" means a person
1564-licensed under this chapter as a real estate broker, (2) "licensed
1565-salesperson" means a person licensed under this chapter as a real estate
1566-salesperson, (3) "out-of-state broker" means a person licensed in another
1567-state as a real estate broker who is not licensed as a real estate broker
1568-under this chapter, (4) "out-of-state salesperson" means a person
1569-licensed in another state as a real estate salesperson who is not licensed
1570-as a real estate salesperson under this chapter, (5) "person" means a
1571-person, as defined in section 20-311, and (6) "advertising" means
1572-advertising, as defined in section 20-329a.]
1573-[(b)] (a) An out-of-state broker may perform acts with respect to a Substitute House Bill No. 6769
1574-
1575-Public Act No. 23-84 49 of 60
1576-
1577-commercial real estate transaction that require a license under this
1578-chapter, provided the out-of-state broker: [complies with the laws of this
1579-state with respect to the transaction and:]
1580-(1) Works in cooperation with a licensed broker, whether in a
1581-cobrokerage, referral or other cooperative agreement or arrangement;
1582-(2) Enters into a written agreement with a licensed broker that
1583-includes the terms of cooperation and any compensation to be paid by
1584-the licensed broker and a statement that the out-of-state broker and the
1585-out-of-state broker's agents will comply with the laws of this state;
1586-(3) Provides the licensed broker a copy of the out-of-state broker's
1587-license or other proof of licensure from the [jurisdictions] states where
1588-the out-of-state broker maintains a license as a real estate broker; [and]
1589-(4) Deposits all escrow funds, security deposits, and other money
1590-received pursuant to the commercial real estate transaction to be held as
1591-provided in section 20-324k unless the agreement required in
1592-subdivision (2) of this subsection specifies otherwise; [.]
1593-(5) Complies with the laws of this state with respect to the transaction;
1594-and
1595-(6) Is credentialled as a real estate broker in another state.
1596-[(c)] (b) An out-of-state salesperson may perform acts with respect to
1597-a commercial real estate transaction that require a license as a real estate
1598-salesperson under this chapter, provided the out-of-state salesperson
1599-complies with the laws of this state with respect to the transaction and:
1600-(1) Works under the direct supervision of an out-of-state broker who
1601-meets the requirements set forth in [subdivision (1)] subdivisions (1), (5)
1602-and (6) of subsection [(b)] (a) of this section; and
1603-(2) Provides the licensed broker who is working in cooperation with Substitute House Bill No. 6769
1604-
1605-Public Act No. 23-84 50 of 60
1606-
1607-the out-of-state broker a copy of the out-of-state salesperson's license or
1608-other proof of licensure from the [jurisdictions] states where the out-of-
1609-state salesperson maintains a license as a real estate salesperson.
1610-[(d)] (c) Any out-of-state broker or out-of-state salesperson licensed
1611-in a state that has no distinction between a real estate broker license and
1612-a real estate salesperson license shall be subject to the requirements of
1613-subsection [(b)] (a) of this section with regard to any commercial real
1614-estate transaction in this state.
1615-[(e)] (d) Each out-of-state broker or out-of-state salesperson that
1616-advertises for sale commercial real estate pursuant to this section shall
1617-include in any advertising material the name of the licensed broker with
1618-whom the out-of-state broker has a written agreement pursuant to
1619-subdivision (2) of subsection [(b)] (a) of this section. Nothing in this
1620-section shall permit an out-of-state broker or out-of-state salesperson to
1621-accompany a prospective buyer at the site of commercial real estate
1622-pursuant to a real estate transaction in this state.
1623-(e) An out-of-state real estate licensee may receive compensation for
1624-referring to a real estate licensee in this state a prospective party to a real
1625-estate transaction in this state.
1626-Sec. 33. Section 20-325m of the general statutes is repealed and the
1627-following is substituted in lieu thereof (Effective April 1, 2024):
1628-(a) Any real estate broker licensed under the provisions of this
1629-chapter who engages in the real estate business [, as defined in section
1630-20-311,] shall retain the following records for a period of not less than
1631-seven years after any real estate transaction closes, all funds held in
1632-escrow for such transaction are disbursed or the listing agreement or
1633-buyer or tenant representation agreement expires, whichever occurs
1634-later: (1) All purchase contracts, leases, options, written offers or
1635-counteroffers drafted by such broker or on behalf of such broker; (2) the Substitute House Bill No. 6769
1636-
1637-Public Act No. 23-84 51 of 60
1638-
1639-listing agreement or buyer or tenant representation agreement, any
1640-extensions of or amendments to such agreements and any disclosures
1641-or agreements required pursuant to sections 20-325a to 20-325l,
1642-inclusive, as amended by this act; and (3) all canceled checks, unused
1643-checks, checkbooks and bank statements for any escrow or trust account
1644-maintained pursuant to section 20-324k. [Such]
1645-(b) Each leasing agent shall retain copies of such leasing agent's
1646-employment agreement or contract with a development owner for a
1647-period of not less than seven years.
1648-(c) All records [may] required under subsection (a) or (b) of this
1649-section shall be retained in [any format, electronic or otherwise,] an
1650-electronic format that is capable of producing an accurate copy of the
1651-original documents unless it is commercially impractical for a real estate
1652-broker or leasing agent to retain such records in such format. If it is
1653-commercially impractical for a real estate broker or leasing agent to
1654-retain such records in an electronic format, the real estate broker or
1655-leasing agent shall retain such records in a paper format that is capable
1656-of producing an accurate copy [in paper format] of the original
1657-[document] documents. Each real estate broker or leasing agent shall
1658-make such records available to the department upon any request made
1659-by the department for such records.
1660-Sec. 34. Section 20-327c of the general statutes is repealed and the
1661-following is substituted in lieu thereof (Effective April 1, 2024):
1662-(a) On or after January 1, 1996, every agreement to purchase
1663-residential real estate, for which a written residential condition report
1664-is, or written residential condition reports are, required pursuant to
1665-section 20-327b, shall include a requirement that the seller credit the
1666-purchaser with the sum of five hundred dollars at closing should the
1667-seller fail to furnish the written residential condition report or reports as
1668-required by sections 20-327b to 20-327e, inclusive. Substitute House Bill No. 6769
1669-
1670-Public Act No. 23-84 52 of 60
1671-
1672-(b) [(1)] No seller who credits a purchaser pursuant to subsection (a)
1673-of this section shall, by reason of such credit, be excused from disclosing
1674-to the purchaser any defect in the residential real estate if such defect:
1675-[(A)] (1) Is subject to disclosure pursuant to section 20-327b;
1676-[(B)] (2) Is within the seller's actual knowledge of such residential real
1677-estate; and
1678-[(C)] (3) Significantly impairs [(i)] (A) the value of such residential
1679-real estate, [(ii)] (B) the health or safety of future occupants of such
1680-residential real estate, or [(iii)] (C) the useful life of such residential real
1681-estate.
1682-[(2)] (c) A purchaser may, without limiting any other remedies
1683-available to the purchaser, bring a civil action in the judicial district in
1684-which the residential real estate is located to recover actual damages
1685-from a seller who fails to disclose to such purchaser any defect described
1686-in [subdivision (1) of this subsection to such purchaser] subsection (b)
1687-of this section.
1688-Sec. 35. Subsections (a) and (b) of section 20-327f of the general
1689-statutes are repealed and the following is substituted in lieu thereof
1690-(Effective April 1, 2024):
1691-(a) With respect to a contract for the sale of [a one-to-four family]
1692-residential real property, if the seller provides written notice to the
1693-purchaser, prior to, or upon, entering into the contract, of the availability
1694-of the lists of hazardous waste facilities pursuant to section 22a-134f, the
1695-seller and any real estate licensee shall be deemed to have fully satisfied
1696-any duty to disclose the presence of all hazardous waste facilities, as
1697-defined in section 22a-134f even if: (1) The list required to be submitted
1698-pursuant to section 22a-134f has not been submitted, (2) the list has not
1699-been received or made available as required in section 22a-134f, or (3)
1700-there is an error, omission or inaccuracy in the list. Substitute House Bill No. 6769
1701-
1702-Public Act No. 23-84 53 of 60
1703-
1704-(b) With respect to a contract for the sale of [a one-to-four family]
1705-residential real property, if the seller provides written notice to the
1706-purchaser, prior to, or upon, entering into the contract, of the availability
1707-of information concerning environmental matters from the United
1708-States Environmental Protection Agency, the National Response Center,
1709-the United States Department of Defense and third-party providers, the
1710-seller and any real estate licensee shall be deemed to have fully satisfied
1711-any duty to disclose environmental matters concerning properties other
1712-than the property that is the subject of the contract.
1713-Sec. 36. Subsection (a) of section 20-327g of the general statutes is
1714-repealed and the following is substituted in lieu thereof (Effective April
1715-1, 2024):
1716-(a) With respect to a contract for the sale of [a one-to-four family]
1717-residential real property, if the seller provides written notice to the
1718-purchaser, prior to, or upon, entering into the contract, that a list of local
1719-properties upon which hunting or shooting sports regularly take place
1720-may be available at the office of the town clerk, the seller and any real
1721-estate licensee shall be deemed to have fully satisfied any duty to
1722-disclose the presence of local properties upon which hunting or
1723-shooting sports regularly take place, even if (1) the list is not available
1724-at the office of the town clerk, or (2) there is an error, omission or
1725-inaccuracy in the list.
1726-Sec. 37. Subsection (b) of section 20-327h of the general statutes is
1727-repealed and the following is substituted in lieu thereof (Effective April
1728-1, 2024):
1729-(b) Commencing sixty days after the date on which the Commission
1730-on Human Rights and Opportunities makes a disclosure form available
1731-pursuant to subsection (a) of this section, each person who offers a
1732-residential real property [containing two or more units] in the state for
1733-sale, exchange or for lease with option to buy shall attach a photocopy, Substitute House Bill No. 6769
1734-
1735-Public Act No. 23-84 54 of 60
1736-
1737-duplicate original, facsimile transmission or other exact reproduction or
1738-duplicate of such disclosure form, signed by the prospective purchaser,
1739-to any purchase agreement, option or lease containing a purchase
1740-option, at the time of closing.
1741-Sec. 38. Section 20-328 of the general statutes is repealed and the
1742-following is substituted in lieu thereof (Effective April 1, 2024):
1743-The Commissioner of Consumer Protection, with advice and
1744-assistance from the commission, may adopt regulations, in accordance
1745-with chapter 54, relating to the form and manner of filing applications
1746-for licenses under this chapter and the manner in which [licensed real
1747-estate brokers and licensed real estate salespersons] real estate licensees
1748-shall conduct the real estate business.
1749-Sec. 39. Section 20-329 of the general statutes is repealed and the
1750-following is substituted in lieu thereof (Effective April 1, 2024):
1751-The provisions of this chapter concerning the licensure of real estate
1752-[brokers and real estate salespersons] licensees shall not apply to: (1)
1753-Any person who as owner or lessor performs any of the acts enumerated
1754-in section 20-311, as amended by this act, with reference to property
1755-owned, leased or sought to be acquired or leased by the person, or to the
1756-person's regular employees who live at such property and are employed
1757-as on-site residential superintendents, janitors or custodians, with
1758-respect to the property so owned or leased or sought to be acquired or
1759-leased when such acts are performed in the regular course of, or incident
1760-to, the management of such property and the investment therein; (2) any
1761-person acting as attorney-in-fact under a duly executed power of
1762-attorney from the owner authorizing the final consummation by
1763-performance of any contract for the sale, leasing or exchange of real
1764-estate, or to service rendered by any attorney-at-law in the performance
1765-of the attorney-at-law's duties as such attorney-at-law; (3) a receiver,
1766-trustee in bankruptcy, administrator, executor or other fiduciary, while Substitute House Bill No. 6769
1767-
1768-Public Act No. 23-84 55 of 60
1769-
1770-acting as such, or any person selling real estate under order of any court,
1771-or to a trustee acting under a trust agreement, deed of trust or will, or
1772-the regular salaried employees thereof; (4) witnesses in court as to the
1773-values of real estate; (5) persons in the employ of the federal or state
1774-government or any political subdivision thereof while acting in the
1775-course of such employment; (6) any employee of any nonprofit housing
1776-corporation that (A) has been certified as a tax-exempt organization
1777-under Section 501(c)(3) of the Internal Revenue Code of 1986, or any
1778-subsequent corresponding internal revenue code of the United States,
1779-as from time to time amended, and manages a housing project, or (B)
1780-manages a housing project assisted in whole or in part by the federal
1781-government pursuant to Section 8 of The United States Housing Act of
1782-1937, as amended from time to time, while such employee is performing
1783-duties in the regular course of, or incidental to, the management of such
1784-housing project; (7) any person licensed to maintain or operate a mobile
1785-manufactured home park under chapter 412 who performs any of the
1786-acts enumerated in section 20-311, as amended by this act, with
1787-reference to lots or mobile manufactured homes within the park or to
1788-the person's employees with respect to lots or mobile manufactured
1789-homes within such park when such acts are performed in the regular
1790-course of, or incidental to, the management of such property and the
1791-investment therein; (8) persons licensed as sellers of mobile
1792-manufactured homes under section 21-67; [or] (9) any person or such
1793-person's regular employee who, as owner, lessor, licensor, manager,
1794-representative or agent manages, leases, or licenses space on or in a
1795-tower, building or other structure for (A) "personal wireless services
1796-facilities" or facilities for "private mobile service" as those terms are
1797-defined in 47 USC 332, which facilities shall be unattended, and the
1798-installation and maintenance of related devices authorized by the
1799-Federal Communications Commission, and ancillary equipment used to
1800-operate such devices and equipment shelters therefor, in an area not to
1801-exceed three hundred sixty square feet for any one service established
1802-by the Federal Communications Commission in 47 CFR, as amended Substitute House Bill No. 6769
1803-
1804-Public Act No. 23-84 56 of 60
1805-
1806-from time to time, by a provider of any such service, and (B) any right
1807-appropriate to access such facilities and connect or use utilities in
1808-connection with such facilities; (10) any leasing agent who is solely
1809-engaged in leasing activities authorized under this chapter; and (11) any
1810-person who is employed by a broker to perform clerical services, which
1811-person shall not negotiate the terms of an agreement, list a property
1812-unless on behalf of a real estate licensee, open or be listed as a signatory
1813-on a broker's escrow or trust account or sell, buy or lease real property
1814-for another person for compensation.
1815-Sec. 40. Section 20-329a of the general statutes is repealed and the
1816-following is substituted in lieu thereof (Effective April 1, 2024):
1817-As used in this section and sections [20-329a] 20-329b to 20-329n,
1818-inclusive, as amended by this act:
1819-(1) "Disposition" or "dispose of" means any sale, exchange, lease,
1820-assignment, award by lottery or other transaction designed to convey
1821-an interest in a subdivision or parcel, lot, or unit in a subdivision when
1822-undertaken for gain or profit;
1823-(2) "Offer" means every inducement, solicitation or attempt to bring
1824-about a disposition;
1825-(3) "Person" means an individual, firm, company, association,
1826-corporation, limited liability company, government or governmental
1827-subdivision or agency, business trust, estate, trust, partnership,
1828-unincorporated association or organization, two or more of any of the
1829-foregoing having a joint or common interest, or any other legal or
1830-commercial entity;
1831-(4) "Broker" means a resident real estate broker duly licensed under
1832-this chapter;
1833-(5) "Salesperson" means any person duly licensed as a real estate Substitute House Bill No. 6769
1834-
1835-Public Act No. 23-84 57 of 60
1836-
1837-salesperson under this chapter;
1838-(6) "Purchaser" means a person who acquires an interest in any lot,
1839-parcel or unit in a subdivision; and
1840-(7) "Subdivision" means any improved or unimproved land or tract
1841-of land located outside this state which is divided or proposed to be
1842-divided into five or more lots, parcels, units, or interests for the purpose
1843-of disposition, at any time as part of a common promotional plan. Any
1844-land which is under common ownership or which is controlled by a
1845-single developer or a group of developers acting in concert, is
1846-contiguous in area, and is designated or advertised as a common unit or
1847-known by a common name, shall be presumed, without regard to the
1848-number of lots, parcels, units or interests covered by each individual
1849-offering, to be part of a common promotional plan. [; and]
1850-[(8) "Advertising" means publishing or causing to be published: (A)
1851-By means of any newspaper or periodical; (B) by means of any radio or
1852-television broadcast; (C) by means of any written or printed or
1853-photographic matter produced by any duplicating process producing
1854-ten copies or more, any information offering for sale or for the purpose
1855-of causing or inducing any other person to purchase or to acquire an
1856-interest in the title to subdivided lands, including the land sales contract
1857-to be used and any photographs or drawings or artist's representations
1858-of physical conditions or facilities on the property existing or to exist; or
1859-(D) by means of any material used in connection with the disposition or
1860-offer of subdivided lands by radio, television, telephone or any other
1861-electronic means. "Advertising" does not include: Stockholder
1862-communications such as annual reports and interim financial reports,
1863-proxy materials, registration statements, securities prospectuses,
1864-applications for listing securities on stock exchanges, and the like;
1865-prospectuses, property reports, offering statements or other documents
1866-required to be delivered to prospective purchasers by an agency of any
1867-other state or the federal government; all communications addressed to Substitute House Bill No. 6769
1868-
1869-Public Act No. 23-84 58 of 60
1870-
1871-and relating to the account of any persons who have previously
1872-executed a contract for the purchase of the subdivider's lands except
1873-where directed to the sale of additional lands; or press releases or other
1874-communications delivered to newspapers or other periodicals for
1875-general information or public relations purposes, provided no charge is
1876-made by such newspapers or other periodicals for the publication or use
1877-of any part of such communications.]
1878-Sec. 41. Section 20-329n of the general statutes is repealed and the
1879-following is substituted in lieu thereof (Effective April 1, 2024):
1880-All moneys paid or advanced by a purchaser or lessee or prospective
1881-purchaser or prospective lessee for any lot, parcel, unit or interest in any
1882-subdivision, the disposition of which is controlled by sections 20-329a,
1883-as amended by this act, 20-329b, 20-329d, 20-329e, 20-329f [,] and 20-
1884-329h, [and 20-329i,] or such portion of such moneys as the commission
1885-may determine is sufficient for the protection of the interests of such
1886-purchaser or lessee shall be deposited by the seller or lessor in an escrow
1887-account, approved by the commission, in a bank doing business in this
1888-state. Such money shall remain in such escrow account until (1) a proper
1889-and valid release is obtained for such money, (2) the owner or
1890-subdivider or the purchaser or lessee has defaulted under their contract
1891-for sale or lease and the commission or a court has made a determination
1892-as to the disposition of such money, or (3) the owner or subdivider or
1893-the seller or lessor orders the return of such money to such purchaser or
1894-lessee.
1895-Sec. 42. Subsection (c) of section 47-90a of the general statutes is
1896-repealed and the following is substituted in lieu thereof (Effective April
1897-1, 2024):
1898-(c) Every person who directly or indirectly controls a declarant liable
1899-under subsection (a) of this section, every general partner, officer or
1900-director of a declarant and every person occupying a similar status or Substitute House Bill No. 6769
1901-
1902-Public Act No. 23-84 59 of 60
1903-
1904-performing a similar function, every employee of the declarant who
1905-materially aids in the disposition, and every agent who materially aids
1906-in the disposition is also liable jointly and severally with and to the same
1907-extent as the declarant, provided the plaintiff sustains the burden of
1908-proof that such person knew or, in the exercise of reasonable care
1909-expected by such persons in the reasonable exercise of their duties,
1910-should have known of the existence of the facts by reason of which the
1911-liability is alleged to exist. There is a right to contribution in cases of
1912-contract among persons so liable. No person shall be liable under this
1913-section whose relationship to the declarant or other person consists
1914-solely of rendering professional and other customary services,
1915-including, but not limited to: (1) An attorney-at-law, architect, land
1916-surveyor or engineer; (2) a lending institution which is not a declarant
1917-whose relationship to the declarant consists solely of rendering
1918-customary banking services and holding a mortgage on all or a portion
1919-of the condominium which mortgage, or agreements or instruments
1920-relating thereto, may contain mutual covenants and agreements
1921-concerning the approval of the condominium instruments and
1922-amendments thereto, and regulates the activity of the declarant under
1923-the condominium instruments or an officer, director or employee of
1924-such lending institution; (3) a real estate broker or salesman whose
1925-relationship to the declarant consists solely of [rendering services
1926-described in subdivision (6) of] engaging in the real estate business, as
1927-defined in section 20-311, as amended by this act, and other customary
1928-services; or (4) a person whose sole involvement in the disposition of a
1929-condominium unit occurs subsequent to the date of the act or omission
1930-out of which any liability under subsection (a) of this section arises.
1931-Sec. 43. Subsection (a) of section 47-42f of the general statutes is
1932-repealed and the following is substituted in lieu thereof (Effective April
1933-1, 2024):
1934-(a) As used in this section: (1) "Residential real property" has the same Substitute House Bill No. 6769
1935-
1936-Public Act No. 23-84 60 of 60
1937-
1938-meaning as provided in section [20-325c] 20-311, as amended by this act,
1939-but does not include property owned by the state or any political
1940-subdivision thereof; (2) "benefited property" or "property that benefits"
1941-includes residential real property burdened by an easement or right-of-
1942-way, the owner of which residential real property uses such easement
1943-or right-of-way; and (3) "easement" or "right-of-way" means a private
1944-appurtenant easement or right-of-way.
1945-Sec. 44. Sections 20-329i and 20-324j of the general statutes are
1946-repealed. (Effective April 1, 2024)
20+Section 1. Section 20-311 of the general statutes is repealed and the 1
21+following is substituted in lieu thereof (Effective April 1, 2024): 2
22+As used in this chapter and sections 2 to 7, inclusive, of this act, unless 3
23+the context otherwise requires: 4
24+(1) "Advertising" (A) means disseminating, publishing or causing to 5
25+be posted by way of any (i) print media, including, but not limited to, 6
26+outdoor signage and periodicals, (ii) audio or video broadcast, 7
27+streaming or other electronic dissemination, or (iii) written or 8
28+photographic material disseminated or posted via online, telephonic 9
29+notification, electronic mail or other electronic means, and (B) does not 10
30+include any (i) stockholder communication, including, but not limited 11
31+to, any annual report, interim financial report, proxy material, 12
32+registration statement, securities prospectus or application for listing a 13
33+security on a stock exchange, (ii) prospectus, property report, offering 14
34+statement or other document that any federal agency or agency of 15
35+another state requires be delivered to a prospective purchaser, (iii) 16
36+communication addressed to, and relating to the account of, a person 17 Substitute Bill No. 6769
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43+who has executed a contract for the purchase of a subdivider's lands, 18
44+except if such communication concerns the sale of additional lands, or 19
45+(iv) press release or other communication delivered to a media outlet for 20
46+general information or public relations purposes, provided no charge is 21
47+imposed by such media outlet for publication or use of any part of such 22
48+communication; 23
49+(2) "Affiliated" means having a working relationship with a real estate 24
50+licensee by way of an (A) employer-employee relationship, or (B) 25
51+independent contractor relationship; 26
52+(3) "Associate broker" means a real estate broker who (A) is affiliated 27
53+with a supervising licensee as an independent contractor or employed 28
54+by a supervising licensee, and (B) has the authority to engage in the real 29
55+estate business on behalf of such supervising licensee; 30
56+(4) "Business entity" means any association, corporation, limited 31
57+liability company, limited liability partnership or partnership; 32
58+[(1)] (5) "Commercial real estate transaction" means any transaction 33
59+involving the sale, exchange, lease or sublease of real property other 34
60+than (A) real property containing any building or structure occupied, or 35
61+intended to be occupied, by not more than four families, or (B) a single 36
62+building lot to be used for family or household purposes; 37
63+[(2)] (6) "Commission" means the Connecticut Real Estate 38
64+Commission appointed under the provisions of section 20-311a; 39
65+(7) "Confidential information" means any fact concerning a person's 40
66+assets, expenses, income, liabilities, motivations to purchase, rent or sell 41
67+real property and previous offers received or made to purchase or lease 42
68+real property which (A) a client has not authorized for release, or (B) is 43
69+not (i) a matter of general knowledge, (ii) part of a public record or file 44
70+to which access is authorized pursuant to section 1-210, or (iii) otherwise 45
71+subject to disclosure under any other provision of the general statutes 46
72+or regulations of Connecticut state agencies; 47 Substitute Bill No. 6769
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79+(8) "Custodial broker" means any individual who is (A) licensed as a 48
80+real estate broker, and (B) temporarily appointed solely to (i) conclude 49
81+the real estate business matters of another broker who is deceased or 50
82+incapacitated, (ii) transition such matters to a real estate broker who is 51
83+alive and not incapacitated, or (iii) assist in transitioning the deceased 52
84+or incapacitated broker's ownership interest in a business entity that is 53
85+engaged in the real estate business for the purpose of satisfying the 54
86+requirements established in section 20-312, as amended by this act; 55
87+(9) "Department" means the Department of Consumer Protection; 56
88+[(3)] (10) "Designated agency" means the appointment by a real estate 57
89+broker of one or more brokers or salespersons affiliated with or 58
90+employed by the real estate broker to solely represent a buyer or tenant 59
91+as a designated buyer's agent and appoint another to represent a seller 60
92+or landlord as a designated seller's agent in a transaction; 61
93+(11) "Designated broker" means the individual real estate broker 62
94+whom a real estate broker business entity names as the individual 63
95+broker responsible for the supervision and overall operation of such 64
96+business entity's engagement in the real estate business in this state; 65
97+[(4)] (12) "Designated buyer agent" means a [broker or salesperson] 66
98+real estate licensee, other than a leasing agent, who is designated by the 67
99+real estate broker by whom such real estate licensee is employed, or with 68
100+whom [the broker or salesperson] such real estate licensee is affiliated, 69
101+[or employed to] solely to represent a named buyer or tenant client of 70
102+the real estate broker during the term of a buyer representation 71
103+agreement or authorization; 72
104+[(5)] (13) "Designated seller agent" means a [broker or salesperson] 73
105+real estate licensee, other than a leasing agent, who is designated by the 74
106+real estate broker by whom such real estate licensee is employed, or with 75
107+whom [the broker or salesperson] such real estate licensee is affiliated, 76
108+[or employed to] solely to represent a named seller or landlord client of 77
109+the real estate broker during the term of a listing agreement or 78 Substitute Bill No. 6769
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116+authorization; 79
117+(14) "Development owner" means (A) the owner of record of a 80
118+multiunit development that is offered for lease, or (B) the parent 81
119+company of such owner of record if such parent company holds a one 82
120+hundred per cent ownership interest in such owner of record; 83
121+[(6) "Engaging in the real estate business"] (15) "Engage in the real 84
122+estate business" means to, while acting for another and for a fee, 85
123+commission or other valuable consideration, [in the listing for sale, 86
124+selling, exchanging, buying or renting, or offering or attempting to 87
125+negotiate a sale, exchange, purchase or rental of] negotiate for or offer, 88
126+or attempt to list for sale, sell, exchange, buy or rent, an estate or interest 89
127+in real estate or [a resale of] to resell a mobile manufactured home, as 90
128+defined in [subdivision (1) of section 21-64, or collecting upon a loan 91
129+secured or to be secured by a mortgage or other encumbrance upon or 92
130+transfer of real estate] section 21-64; 93
131+(16) "Incapacity" means any physical or mental incapacity which 94
132+prevents an individual from substantially satisfying such individual's 95
133+duties and responsibilities as a real estate licensee; 96
134+(17) "Influence residential real estate appraisals" includes, but is not 97
135+limited to, refusing or intentional failing to refer a homebuyer, or 98
136+encouraging other real estate licensees not to refer a homebuyer, to a 99
137+mortgage broker or lender, as such terms are defined in section 36a-760, 100
138+based solely on the fact that the mortgage broker or lender uses an 101
139+appraiser who has provided an appraisal reflecting a fair market value 102
140+estimate that was less than the sale contract price; 103
141+(18) "Leasing agent" means any individual who (A) acts as an agent 104
142+for a principal for a commission, fee or other valuable consideration, and 105
143+(B) engages in leasing or renting activity, including, but not limited to, 106
144+(i) collecting security deposits, (ii) offering or attempting to negotiate a 107
145+rental, or (iii) collecting, offering or attempting to collect rent for the use 108
146+of real estate; 109 Substitute Bill No. 6769
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153+(19) "Multiunit development" means any residential property with at 110
154+least fifty units that are leased or available to be leased; 111
155+(20) "Negotiate" means acting, directly or indirectly, as an 112
156+intermediary by facilitating, or participating in, communications 113
157+between parties related to the parties' interests in a real estate or mobile 114
158+manufactured home transaction; 115
159+(21) "Nonmaterial fact concerning real property" means any fact, set 116
160+of facts or circumstances surrounding real property which includes, but 117
161+is not limited to, the fact that (A) an occupant of real property is or has 118
162+been infected with a disease on the list of reportable diseases, emergency 119
163+illnesses and health conditions issued by the Commissioner of Public 120
164+Health pursuant to section 19a-2a, or (B) the real property was at any 121
165+time suspected to have been the site of a death or felony; 122
166+[(7)] (22) "Person" means any individual [, partnership, association, 123
167+limited liability company or corporation] or business entity; 124
168+(23) "Promotional note" (A) means any promissory note that (i) is 125
169+secured by a trust deed executed (I) on unimproved real property, (II) 126
170+after construction of an improvement of real property but before the first 127
171+sale of such property so improved, or (III) as a means of financing the 128
172+first purchase of such property so improved, and (ii) is subordinate, or 129
173+which by its terms may become subordinate, to any other trust deed on 130
174+such property, and (B) does not include any note which was executed 131
175+more than three years prior to being offered for sale or was secured by 132
176+a first trust deed on real property in a subdivision, which evidences a 133
177+bona fide loan made in connection with the financing of the usual costs 134
178+of the development of one or more residential, commercial or industrial 135
179+buildings on the property under a written agreement providing (i) for 136
180+either the disbursement of the loan funds as costs are incurred or in 137
181+relation to the progress of the work, and (ii) for title insurance insuring 138
182+the priority of the security as against mechanic's liens or for the final 139
183+disbursement of at least ten per cent of the loan funds after the 140
184+expiration of the period for the filing of mechanic's liens; 141 Substitute Bill No. 6769
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191+(24) "Prospective party" means any person that communicates with a 142
192+real estate licensee in contemplation of potential representation by the 143
193+real estate licensee in a real estate transaction; 144
194+[(8)] (25) "Real estate broker" or "broker" means (A) any person [, 145
195+partnership, association, limited liability company or corporation which 146
196+acts for another person or entity and for a fee, commission or other 147
197+valuable consideration, lists for sale, sells, exchanges, buys or rents, or 148
198+offers or attempts to negotiate a sale, exchange, purchase or rental of, an 149
199+estate or interest in real estate, or a resale of a mobile manufactured 150
200+home, as defined in subdivision (1) of section 21-64, or collects or offers 151
201+or attempts to collect rent for the use of real estate] engaged in the real 152
202+estate business, and (B) any person [, partnership, association, limited 153
203+liability company or corporation] employed by or on behalf of the owner 154
204+or owners of lots or other parcels of real estate, at a stated salary, upon 155
205+commission, upon a salary and commission basis or otherwise to sell 156
206+such real estate, or any parts thereof, in lots or other parcels, and who 157
207+sells or exchanges, or offers, attempts or agrees to negotiate the sale or 158
208+exchange of, any such lot or parcel of real estate; 159
209+(26) "Real estate licensee" means any leasing agent, real estate broker 160
210+or real estate salesperson licensed pursuant to this chapter; 161
211+[(9)] (27) "Real estate salesperson" or "salesperson" means [a person] 162
212+any individual who is affiliated with [any real estate broker as an 163
213+independent contractor or employed by a real estate broker to list for 164
214+sale, sell or offer for sale, to buy or offer to buy or to negotiate the 165
215+purchase or sale or exchange of real estate, or to offer for resale, a mobile 166
216+manufactured home, as defined in subdivision (1) of section 21-64, or to 167
217+lease or rent or offer to lease, rent or place for rent any real estate, or to 168
218+collect or offer or attempt to collect rent for the use of real estate] a 169
219+supervising licensee to (A) engage in the real estate business for or on 170
220+behalf of such [real estate broker, or who offers, sells or attempts to sell 171
221+the real estate or mobile manufactured homes of a licensed broker] 172
222+supervising licensee, or (B) if such individual is acting for another 173
223+person as a designated seller agent or designated buyer agent, [lists for 174 Substitute Bill No. 6769
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230+sale, sells, exchanges, buys or rents, or offers or attempts to negotiate a 175
231+sale, exchange, purchase or rental of, an estate or interest in real estate, 176
232+or a resale of a mobile manufactured home, as defined in subsection (a) 177
233+of section 21-64, or collects or offers or attempts to collect rent for the 178
234+use of real estate, but does not include employees of any real estate 179
235+broker whose principal occupation is clerical work in an office, or 180
236+janitors or custodians engaged principally in that occupation] engage in 181
237+the real estate business; 182
238+(28) "Real estate transaction" means any transaction in which (A) real 183
239+property is legally transferred to another person, or (B) a lease 184
240+agreement is executed between a landlord and a tenant; 185
241+(29) "Residential real property" means any one to four-family 186
242+residential real estate located in this state, including, but not limited to, 187
243+(A) a cooperative or condominium where the total number of units in 188
244+such cooperative or condominium does not exceed four units, and (B) 189
245+any individual unit within a multiunit development; 190
246+(30) "School" means any person that offers prelicensing or continuing 191
247+education courses approved pursuant to this chapter and sections 3 and 192
248+4 of this act; 193
249+(31) "Supervising licensee" means the real estate broker that is 194
250+responsible for controlling and supervising another real estate licensee 195
251+or a team; 196
252+[(10)] (32) "Team" means [a group] any combination of at least two 197
253+licensed real estate brokers, designated brokers or real estate 198
254+salespersons who are affiliated with the same [sponsoring real estate 199
255+broker] supervising licensee and engage in advertising as a group using 200
256+a team name; and 201
257+[(11)] (33) "Team name" means the name used to refer to a team in 202
258+team advertisements. 203
259+Sec. 2. (NEW) (Effective April 1, 2024) (a) No associate broker shall 204 Substitute Bill No. 6769
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266+engage in the real estate business unless the supervising licensee that is 205
267+responsible for controlling and supervising the associate broker (1) 206
268+knows that such associate broker is engaging in the real estate business, 207
269+and (2) has consented to such associate broker engaging in the real estate 208
270+business. 209
271+(b) Each supervising licensee shall be responsible for the actions of 210
272+the associate brokers who are under such supervising licensee's control 211
273+and supervision to the same extent that such supervising licensee would 212
274+be responsible for such associate brokers if such associate brokers were 213
275+real estate salespersons affiliated with such supervising licensee. 214
276+(c) If an associate broker's affiliation with a supervising licensee is 215
277+terminated, the associate broker shall notify the department of such 216
278+termination not later than fourteen calendar days after such termination 217
279+or such associate broker's affiliation with another supervising licensee, 218
280+whichever occurs first. 219
281+(d) Each associate broker shall comply with all advertising 220
282+requirements and standards that apply to real estate brokers, and shall 221
283+include the name of the supervising licensee who controls and 222
284+supervises such associate broker at a prominent location in all of such 223
285+associate broker's advertisements. 224
286+Sec. 3. (NEW) (Effective April 1, 2024) (a) (1) A school shall register 225
287+with the department, in a form and manner prescribed by the 226
288+Commissioner of Consumer Protection, prior to offering any 227
289+prelicensing or continuing education course. Such form shall include an 228
290+attestation by the school that: 229
291+(A) All courses offered by such school comply with the requirements 230
292+established in section 4 of this act; and 231
293+(B) All instructors teaching courses at such school are qualified 232
294+pursuant to subsection (c) of this section and section 4 of this act. 233
295+(2) No school shall offer any prelicensing or continuing education 234 Substitute Bill No. 6769
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302+course in this state unless such school maintains an active registration 235
303+with the department under this section. 236
304+(b) Each school registration issued pursuant to this section shall 237
305+expire biennially, and the initial registration fee and renewal fee for each 238
306+such school registration shall be one hundred dollars. 239
307+(c) No school shall permit an instructor to teach a course approved 240
308+under chapter 392 of the general statutes unless such school has 241
309+determined that the instructor has: 242
310+(1) At least five years of experience as a practicing real estate licensee; 243
311+(2) Expertise, or a professional designation from an institute or 244
312+society, in the field in which such instructor proposes to teach; or 245
313+(3) Experience teaching a course in a formal education program or 246
314+has attended an accredited college or university extension instructors' 247
315+seminar. For collegiate level courses that are part of a degree program, 248
316+the instructor shall have (A) teaching experience and a master's degree 249
317+in an appropriate field, or (B) such other combination of qualifications 250
318+as the commission may, in the commission's discretion, approve. 251
319+(d) No school shall offer any course that does not satisfy the 252
320+requirements established in section 4 of this act. 253
321+Sec. 4. (NEW) (Effective April 1, 2024) (a) Each school that is registered 254
322+with the department pursuant to section 3 of this act shall register with 255
323+the department, in a form and manner prescribed by the Commissioner 256
324+of Consumer Protection, each prelicensing or continuing education 257
325+course that such school intends to offer in this state. The fee to register 258
326+each course under this section shall be fifty dollars, and each course 259
327+registration application submitted to the department pursuant to this 260
328+section shall include: 261
329+(1) An outline of the course content detailing the total duration of 262
330+such course and the amount of time spent on each subject covered as 263 Substitute Bill No. 6769
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337+part of such course; 264
338+(2) The name of, and contact information for, each course instructor; 265
339+(3) A copy of the certificate issued to students upon completion of 266
340+such course; 267
341+(4) The cancellation and refund policy available to students for such 268
342+course; 269
343+(5) An attestation by the school that such course meets all the 270
344+requirements established in this section, section 20-314a of the general 271
345+statutes, as amended by this act, and all regulations adopted pursuant 272
346+to chapter 392 of the general statutes; and 273
347+(6) If such course is provided on an in-person basis, the location at 274
348+which such course is provided on an in-person basis. 275
349+(b) Notwithstanding subdivision (3) of subsection (a) of this section, 276
350+a school that offers more than one course may submit to the department 277
351+a template course completion certificate for the department's 278
352+consideration. If the department approves a template course completion 279
353+certificate, the school that submitted such certificate to the department 280
354+may use such template to issue all course completion certificates and not 281
355+be required to submit a copy of such certificates to the department 282
356+pursuant to subdivision (3) of subsection (a) of this section. 283
357+(c) No prelicensing or continuing education course shall qualify 284
358+towards the prelicensing or continuing education requirements 285
359+established for a real estate license under chapter 392 of the general 286
360+statutes unless such course has been approved by the department 287
361+pursuant to this section. 288
362+(d) The department shall not approve any prelicensing course under 289
363+this section unless such course is provided on an in-person basis or by 290
364+way of electronic means that incorporates a live online format. 291 Substitute Bill No. 6769
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371+(e) (1) Subject to the provisions of subdivision (2) of this subsection, 292
372+each school that offers a continuing education course under this section 293
373+shall ensure that no student may complete such course in less time than 294
374+the total course duration specified in the application that such school 295
375+filed with the department for such course pursuant to subsection (a) of 296
376+this section. 297
377+(2) If a school offers a course described in subdivision (1) of this 298
378+subsection by electronic means, the school may satisfy the requirements 299
379+established in subdivision (1) of this subsection by: 300
380+(A) Offering a live online course format using telecommunications 301
381+technology that allows for real-time audio communication between the 302
382+instructor and students; or 303
383+(B) Using technology that prohibits a student from completing the 304
384+course in less time than the total course duration specified in the 305
385+application that such school filed with the department for such course 306
386+pursuant to subsection (a) of this section. 307
387+(f) If a school offers any prelicensing or continuing education course 308
388+under this section by electronic means that do not allow for real-time 309
389+audio communication between the instructor and students, such school 310
390+shall include in such course periodic interactive assessments to confirm 311
391+each student's level of comprehension of, and engagement with, such 312
392+course. 313
393+(g) Each course registration issued pursuant to this section shall 314
394+expire five years after such registration is issued. 315
395+Sec. 5. (NEW) (Effective April 1, 2024) (a) If a real estate licensee 316
396+engages in the real estate business and a buyer or renter of real estate 317
397+uses an interpreter, other than the real estate licensee or an employee of 318
398+the real estate licensee, in conducting a real estate transaction or 319
399+negotiations, the real estate licensee shall provide to the buyer or renter 320
400+and interpreter, and obtain the buyer's or renter's and interpreter's 321
401+signatures on, forms containing the following language: 322 Substitute Bill No. 6769
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408+"I, (name of buyer or renter), used (name of interpreter) to act as my 323
409+interpreter during this real estate transaction or these negotiations. The 324
410+obligations of this contract or other written agreement were explained 325
411+to me in my native language by the interpreter. I understand the 326
412+contract or other written agreement. 327
413+(signature of buyer or renter) 328
414+(relationship of interpreter to buyer or renter) 329
415+I, (name of interpreter), acted as interpreter during this real estate 330
416+transaction or these negotiations. The obligations of the contract or other 331
417+written agreement were explained to (name of buyer or renter) in their 332
418+native language. I understand the contract or other written agreement. 333
419+(signature of interpreter) 334
420+(relationship of interpreter to buyer or renter)." 335
421+(b) Except as provided in subsection (c) of this section, if a real estate 336
422+licensee engages in the real estate business and acts as an interpreter for 337
423+a buyer or renter in conducting a transaction or negotiations, the real 338
424+estate licensee shall provide to the buyer or renter, and obtain the 339
425+buyer's or renter's signature on, a form containing the following 340
426+language written in the buyer's or renter's native language: 341
427+"This real estate transaction or these negotiations were conducted in 342
428+(buyer's or renter's native language), which is my native language. I 343
429+voluntarily choose to have the Real Estate (Broker/Salesperson/Leasing 344
430+Agent) act as my interpreter during the negotiations. The obligations of 345
431+the contract or other written agreement were explained to me in my 346
432+native language. I understand the contract or other written agreement." 347
433+(c) If a language that cannot be reduced to writing is used to conduct 348
434+a real estate transaction or negotiations, the form required under 349
435+subsection (b) of this section shall be in the English language. 350 Substitute Bill No. 6769
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442+Sec. 6. (NEW) (Effective April 1, 2024) (a) If a real estate broker dies or 351
443+is incapacitated, the executor of such broker's estate or any other person 352
444+who is legally authorized to act on behalf of such broker in a financial 353
445+transaction may apply to the department, in a form and manner 354
446+prescribed by the department, for the appointment of a custodial broker. 355
447+If the department approves an application for the appointment of a 356
448+custodial broker, the department shall appoint a custodial broker for the 357
449+deceased or incapacitated broker. Except as provided in subsection (b) 358
450+of this section, each custodial broker who is appointed pursuant to this 359
451+subsection shall serve for a term not to exceed one hundred eighty days. 360
452+(b) The department may, in the department's discretion, extend a 361
453+custodial broker's term beyond one hundred eighty days if the 362
454+department receives a hardship application that is submitted to the 363
455+department in a form and manner prescribed by the department. 364
456+(c) Each custodial broker shall act to preserve the financial interests 365
457+of the deceased or incapacitated real estate broker, or the estate of the 366
458+deceased real estate broker, for whom such custodial broker is 367
459+appointed. 368
460+(d) No real estate broker who is appointed as a custodial broker to 369
461+conclude the business of a deceased or incapacitated individual real 370
462+estate broker shall negotiate the purchase, sale or lease of any real estate 371
463+on behalf of such deceased or incapacitated broker unless: 372
464+(1) The prospective purchaser, seller, lessor or lessee of such real 373
465+estate entered into a preexisting buyer agreement, listing agreement or 374
466+leasing agreement with such deceased or incapacitated broker; and 375
467+(2) The prospective purchaser or lessor of such real estate has 376
468+executed a contract or paid a deposit to a seller or lessee to reserve a 377
469+right to purchase or lease such real estate from such seller or lessee. 378
470+(e) No business entity shall engage in the real estate business while 379
471+the designated broker for such business entity is deceased or 380
472+incapacitated unless a custodial broker has been appointed for such 381 Substitute Bill No. 6769
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479+business entity. 382
480+(f) If a custodial broker is appointed to serve as a designated broker 383
481+for a business entity, the business entity may engage in the real estate 384
482+business to the same extent that such business entity would engage in 385
483+such business if such designated broker was not a custodial broker. 386
484+(g) No real estate salesperson or team member shall engage in the real 387
485+estate business while the supervising licensee that is responsible for 388
486+controlling and supervising such salesperson or team is deceased or 389
487+incapacitated unless a custodial broker has been appointed for such 390
488+supervising licensee. 391
489+Sec. 7. (NEW) (Effective April 1, 2024) (a) No leasing agent shall engage 392
490+in the real estate business except for leasing or renting real property that 393
491+is exclusively used for residential occupancy. No licensed real estate 394
492+broker or salesperson shall be required to obtain a leasing agent license 395
493+to perform leasing activities. Leasing agents shall not engage in any 396
494+activity that requires a real estate broker's or real estate salesperson's 397
495+license, including, but not limited to, selling, offering, listing, 398
496+negotiating, referring or showing for sale, entering into lease-to-own 399
497+agreements or leasing commercial real estate. A leasing agent shall be 400
498+employed by a development owner. A leasing agent shall not offer 401
499+leasing services for any person that is not a development owner. No 402
500+leasing agent shall engage in the real estate business concerning any 403
501+property other than on behalf of the owner of record of a multiunit 404
502+development that employs such leasing agent. A leasing agent shall 405
503+obtain a written contract from the development owner to demonstrate 406
504+such employment prior to engaging in any leasing activity at such 407
505+development. Such contract shall be made available to the department, 408
506+and produced by the leasing agent in an electronic form, upon a request 409
507+by the department for such contract. 410
508+(b) If a leasing agent's affiliation with a development owner is 411
509+terminated, the leasing agent shall notify the department of such 412
510+termination not later than fourteen calendar days after such termination 413 Substitute Bill No. 6769
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517+or such leasing agent's affiliation with another development owner, 414
518+whichever occurs first. 415
519+Sec. 8. Section 20-311b of the general statutes is repealed and the 416
520+following is substituted in lieu thereof (Effective April 1, 2024): 417
521+(a) Within thirty days after the appointment of the members of the 418
522+commission, the commission shall meet in the city of Hartford for the 419
523+purpose of organizing by selecting such officers other than a 420
524+chairperson as the commission may deem necessary and appropriate. A 421
525+majority of the members of the commission shall constitute a quorum 422
526+for the exercise of the powers or authority conferred upon it. 423
527+(b) [(1)] The commission shall authorize the [Department of 424
528+Consumer Protection] department to issue licenses to real estate 425
529+[brokers and real estate salespersons] licensees. 426
530+[(2)] (c) The commission shall administer the provisions of this 427
531+chapter as to licensure and issuance, renewal, suspension or revocation 428
532+of licenses concerning the real estate business. 429
533+[(c)] (d) The commission shall be provided with the necessary office 430
534+space in Hartford by the Commissioner of Administrative Services. The 431
535+place of business of the commission and all files, records and property 432
536+of the commission shall at all times be and remain at such office, except 433
537+that inactive files shall be stored at a location designated by the 434
538+commission. 435
539+[(d)] (e) The commission shall hold meetings and hearings in 436
540+Hartford, in space provided by the Commissioner of Administrative 437
541+Services, or at such places outside of Hartford as shall be determined by 438
542+the chairman of the commission. The commission shall meet at least 439
543+once in each three-month period and may meet more often at the call of 440
544+its chairman. The chairman of the commission shall call a meeting of the 441
545+commission whenever requested to do so by a majority of the members 442
546+of the commission. 443 Substitute Bill No. 6769
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553+[(e)] (f) The commission shall vote on all matters requiring a decision 444
554+and votes shall be recorded in the commission's minutes. 445
555+Sec. 9. Section 20-312 of the general statutes is repealed and the 446
556+following is substituted in lieu thereof (Effective April 1, 2024): 447
557+(a) No person shall act as a real estate [broker or real estate 448
558+salesperson] licensee without a license issued by the commission or the 449
559+Commissioner of Consumer Protection, unless exempt under this 450
560+chapter. The [Commissioner of Consumer Protection] commissioner 451
561+may enter into any contract for the purpose of administratively 452
562+processing the renewal of licenses on behalf of the commission. 453
563+(b) The practice of engaging in the real estate business, or the offer to 454
564+[practice real estate brokerage] engage in the real estate business in this 455
565+state by [individual licensed real estate brokers or real estate 456
566+salespersons as a corporation, limited liability company, partnership or 457
567+limited liability partnership, a] real estate licensees, as a business entity 458
568+is permitted, provided: 459
569+(1) A material part of the business entity's business [of which] 460
570+includes engaging in the real estate [brokerage, is permitted, provided 461
571+(1) the] business; 462
572+(2) The business entity's personnel [of such corporation, limited 463
573+liability company, partnership or limited liability partnership] who 464
574+engage in the real estate [brokerage] business [as real estate brokers or 465
575+real estate salespersons, and the real estate brokers whose ownership, 466
576+control, membership or partnership interest is credited toward the 467
577+requirements of subdivision (3) of this subsection, are licensed or 468
578+exempt from licensure under this chapter, (2) the corporation, limited 469
579+liability company, partnership or limited liability partnership] are 470
580+licensed, or exempt from licensure, under this chapter; 471
581+(3) The business entity has been issued a real estate broker license [by 472
582+the commission as provided] as set forth in this section; [and] 473 Substitute Bill No. 6769
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589+(4) The business entity has paid the license or renewal fee required 474
590+for a real estate broker's license as set forth in section 20-314, as amended 475
591+by this act; [,and (3) except for] and 476
592+(5) The business entity is a publicly traded corporation or, if the 477
593+business entity is not a publicly traded corporation: 478
594+(A) [with respect to a corporation other than a nonstock corporation,] 479
595+The business entity is a stock corporation and one or more real estate 480
596+brokers, who are either licensed or exempt from licensure under this 481
597+chapter, own or control fifty-one per cent or more of the total issued 482
598+shares of the corporation; [,] 483
599+(B) [with respect to] The business entity is a nonstock corporation [,] 484
600+and one or more real estate brokers, who are licensed or exempt from 485
601+licensure under this chapter, constitute at least fifty-one per cent of the 486
602+members of the nonstock corporation; [,] 487
603+(C) [with respect to] The business entity is a limited liability company 488
604+[,] and one or more real estate brokers, who are licensed or exempt from 489
605+licensure under this chapter, own or control at least fifty-one per cent of 490
606+the interest in the limited liability company, as defined in section 34-491
607+243a; [,] or 492
608+(D) [with respect to] The business entity is a partnership or limited 493
609+liability partnership [, one or more real estate brokers'] and the 494
610+partnership interest, as defined in section 34-301, of one or more real 495
611+estate brokers, who are licensed or exempt from licensure under this 496
612+chapter, constitutes at least fifty-one per cent of the total partnership 497
613+interest. [No such corporation, limited liability company, partnership or 498
614+limited liability partnership shall be relieved of responsibility for the 499
615+conduct or acts of its agents, employees or officers by reason of its 500
616+compliance with this section, nor shall any individual practicing real 501
617+estate brokerage be relieved of responsibility for real estate services 502
618+performed by reason of the individual's employment or relationship 503
619+with such corporation, limited liability company, partnership or limited 504 Substitute Bill No. 6769
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626+liability partnership. The Real Estate Commission may refuse to 505
627+authorize the issuance or renewal of a license if any facts exist that 506
628+would entitle the commission to suspend or revoke an existing license.] 507
629+(c) A [corporation, limited liability company, partnership or limited 508
630+liability partnership] business entity desiring a real estate broker license 509
631+shall file with the commission or the [commissioner] Commissioner of 510
632+Consumer Protection an application on such forms and in such manner 511
633+as prescribed by the [Department of Consumer Protection] department. 512
634+Each such [corporation, limited liability company, partnership or 513
635+limited liability partnership] business entity shall file with the 514
636+commission, [a designation of at least one individual licensed or 515
637+qualified to be licensed as a real estate broker in this state who shall be 516
638+in charge of the real estate brokerage business of such corporation, 517
639+limited liability company, partnership or limited liability partnership in 518
640+this state] in a form and manner prescribed by the department, the 519
641+identity of, and contact information for, at least one designated broker. 520
642+Such [corporation, limited liability company, partnership or limited 521
643+liability partnership] business entity shall notify the commission of any 522
644+change in [such designation] the identity of, or contact information for, 523
645+such designated broker not later than thirty days after such change 524
646+becomes effective. 525
647+(d) The Real Estate Commission may impose a fine of not more than 526
648+[one] five thousand dollars per violation on any [corporation, limited 527
649+liability company, partnership or limited liability partnership] person 528
650+that engages in the real estate business, including, but not limited to, 529
651+leasing or rental activity, without a license required by this section. Any 530
652+such imposition of a fine by the commission shall be a proposed final 531
653+decision and submitted to the [commissioner] Commissioner of 532
654+Consumer Protection in accordance with the provisions of subsection 533
655+(b) of section 21a-7. 534
656+(e) [(1) (A) Except as provided in subdivision (2) of this subsection, 535
657+each] Each team shall register, on a form and in a manner prescribed by 536
658+the [commissioner] Commissioner of Consumer Protection, with the 537 Substitute Bill No. 6769
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665+[Department of Consumer Protection] department. Each initial 538
666+registration shall be valid for a period of one year and be subject to 539
667+renewal for additional one-year periods. Each team shall pay to the 540
668+department an initial registration fee of five hundred sixty-five dollars 541
669+when the team files its initial registration, and a registration renewal fee 542
670+of three hundred seventy-five dollars when the team files each 543
671+registration renewal, pursuant to this subparagraph. Each team shall 544
672+include in each registration form that the team files with the department 545
673+pursuant to this [subparagraph] subsection: 546
674+[(i) The] (1) Such team's team name, which shall: 547
675+[(I)] (A) Include the full name of at least one licensed real estate 548
676+broker or real estate salesperson who is part of [the] such team or be 549
677+immediately followed by "at/of [full name of the [sponsoring real estate 550
678+broker] team's supervising licensee]"; 551
679+[(II)] (B) Not include the name of any individual who is not a licensed 552
680+real estate broker or real estate salesperson; and 553
681+[(III)] (C) With the exception of "team", not include any abbreviation, 554
682+term or phrase, including, but not limited to, "associates", "company", 555
683+"corporation", "group", "LLC", "real estate" or "realty", that implies that 556
684+[the] such team is a business entity; 557
685+[(ii)] (2) The name of, and contact information for, [the] such team's 558
686+[sponsoring real estate broker] supervising licensee, who shall serve as 559
687+[the] such team's primary contact, ensure that [the] such team complies 560
688+with all applicable laws and regulations concerning team 561
689+advertisements and ensure that [the] such team timely files accurate 562
690+registration forms and registration updates with the department 563
691+pursuant to this [subdivision] subsection; and 564
692+[(iii)] (3) The name and contact information for each real estate broker 565
693+or real estate salesperson who is part of [the] such team. 566
694+[(B)] (f) A team shall send notice to the department disclosing any 567 Substitute Bill No. 6769
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701+change to the information contained in the team's registration form. The 568
702+team shall send such notice to the department, on a form and in a 569
703+manner prescribed by the [commissioner] Commissioner of Consumer 570
704+Protection, not later than twelve days after the date of such change. A 571
705+team may transfer the team's registration from one supervising licensee 572
706+to another supervising licensee, without applying for a new team 573
707+registration, if (1) all members of such team transfer to such other 574
708+supervising licensee, and (2) both supervising licensees agree to such 575
709+transfer. 576
710+[(C)] (g) Each team shall comply with all advertising requirements 577
711+and standards that apply to real estate brokers, and shall include the 578
712+name of [the] such team's [sponsoring real estate broker] supervising 579
713+licensee at a prominent location in all of [the] such team's 580
714+advertisements. 581
715+[(2) The commissioner may, in the commissioner's discretion, engage 582
716+the services of such third parties that the commissioner deems necessary 583
717+to assist the commissioner in implementing the provisions of 584
718+subdivision (1) of this subsection, provided no expenditure of state 585
719+funds shall be made to cover the cost of hiring a consultant to make 586
720+programmatic changes to the licensing system.] 587
721+Sec. 10. Section 20-312b of the general statutes is repealed and the 588
722+following is substituted in lieu thereof (Effective April 1, 2024): 589
723+A [licensed] real estate [broker or real estate salesperson] licensee 590
724+shall not be considered an employee under the provisions of section 31-591
725+275 if substantially all of the remuneration for the services performed by 592
726+such [broker or salesperson] real estate licensee, whether paid in cash or 593
727+otherwise, is directly related to sales or other output rather than to the 594
728+number of hours worked, and such services are performed by the 595
729+[broker or salesperson] real estate licensee pursuant to a written contract 596
730+that contains the following provisions: 597
731+(1) The [broker or salesperson] real estate licensee, for purposes of 598 Substitute Bill No. 6769
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738+workers' compensation, is engaged as an independent contractor 599
739+associated with the person for whom services are performed; 600
740+(2) The [broker or salesperson] real estate licensee shall be paid a 601
741+commission based on [his] such real estate licensee's gross sales or 602
742+leases, if any, without deduction for taxes, which commission shall be 603
743+directly related to sales, leases or other output; 604
744+(3) The [broker or salesperson] real estate licensee shall not receive 605
745+any remuneration related to the number of hours worked and shall not 606
746+be treated as an employee with respect to such services for purposes of 607
747+workers' compensation; 608
748+(4) The [broker or salesperson] real estate licensee shall be permitted 609
749+to work any hours [he] such real estate licensee chooses; 610
750+(5) The [broker or salesperson] real estate licensee shall be permitted 611
751+to work out of [his] such real estate licensee's own home or the office of 612
752+the person for whom services are performed; 613
753+(6) The [broker or salesperson] real estate licensee shall be free to 614
754+engage in outside employment; 615
755+(7) The person for whom the services are performed may provide 616
756+office facilities and supplies for the use of the [broker or salesperson] 617
757+real estate licensee, but [the broker or salesperson] such real estate 618
758+licensee shall otherwise pay [his] such real estate licensee's own 619
759+expenses, including, but not limited to, automobile, travel and 620
760+entertainment expenses; and 621
761+(8) The contract may be terminated by either party to such contract at 622
762+any time upon notice given to the other party to such contract. 623
763+Sec. 11. Section 20-314 of the general statutes is repealed and the 624
764+following is substituted in lieu thereof (Effective April 1, 2024): 625
765+(a) Licenses shall be granted under this chapter only to persons who 626 Substitute Bill No. 6769
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772+bear a good reputation for honesty, truthfulness and fair dealing and 627
773+who are competent to transact the business of a leasing agent, real estate 628
774+broker or real estate salesperson in such manner as to safeguard the 629
775+interests of the public. 630
776+(b) Each application for a license or for a renewal thereof shall be 631
777+made in writing, on such forms and in such manner as is prescribed by 632
778+the [Department of Consumer Protection and accompanied by such 633
779+evidence in support of such application as is prescribed by the 634
780+commission. The commission may require such information with regard 635
781+to an applicant as the commission deems desirable, with due regard to 636
782+the paramount interests of the public, as to the honesty, truthfulness, 637
783+integrity and competency of the applicant and, where the applicant is a 638
784+corporation, association or partnership, as to the honesty, truthfulness, 639
785+integrity and competency of the officers of such corporation or the 640
786+members of such association or partnership] department. 641
787+(c) In order to determine the competency of any applicant for a real 642
788+estate [broker's license or a real estate salesperson's] licensee's license, 643
789+the commission or Commissioner of Consumer Protection shall, on 644
790+payment of an application fee of one hundred twenty dollars by an 645
791+applicant for a real estate broker's license or an application fee of eighty 646
792+dollars by an applicant for a leasing agent's or real estate salesperson's 647
793+license, subject such applicant to personal written examination as to the 648
794+applicant's competency to act as a leasing agent, real estate broker or 649
795+real estate salesperson, as the case may be. [Such] Each examination 650
796+shall be prepared by the [Department of Consumer Protection] 651
797+department or by a national testing service designated by the 652
798+[Commissioner of Consumer Protection] commissioner and shall be 653
799+administered to applicants by the [Department of Consumer Protection] 654
800+department or by such testing service at such times and places as the 655
801+commissioner may deem necessary. The commission or [Commissioner 656
802+of Consumer Protection] commissioner may waive the uniform portion 657
803+of the written examination requirement in the case of an applicant who 658
804+has taken the national testing service examination in another state 659 Substitute Bill No. 6769
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811+within two years from the date of application and has received a score 660
812+deemed satisfactory by the commission or [Commissioner of Consumer 661
813+Protection] commissioner. The [Commissioner of Consumer Protection] 662
814+commissioner shall adopt regulations, in accordance with chapter 54, 663
815+establishing passing scores for examinations. In addition to such 664
816+application fee, applicants taking the examination administered by a 665
817+national testing service shall be required to pay directly to such testing 666
818+service an examination fee covering the cost of such examination. Each 667
819+payment of such application fee shall entitle the applicant to take such 668
820+examination within the one-year period from the date of payment. 669
821+[(d) (1) (A) Each applicant applying for a real estate broker's license 670
822+on or after July 1, 2016, but before January 1, 2022, shall, before being 671
823+admitted to such examination, prove to the satisfaction of the 672
824+commission or the Commissioner of Consumer Protection that the 673
825+applicant (i) (I) has been actively engaged for at least two years as a 674
826+licensed real estate salesperson under the supervision of a licensed real 675
827+estate broker in this state, (II) has successfully completed a course 676
828+approved by the commission or commissioner in real estate principles 677
829+and practices of at least sixty classroom hours of study, (III) has 678
830+successfully completed a course approved by the commission or 679
831+commissioner in real estate legal compliance consisting of at least fifteen 680
832+classroom hours of study, (IV) has successfully completed a course 681
833+approved by the commission or commissioner in real estate brokerage 682
834+principles and practices consisting of at least fifteen classroom hours, 683
835+and (V) has successfully completed two elective courses, each consisting 684
836+of fifteen classroom hours of study, as prescribed by the commission or 685
837+commissioner, or (ii) has equivalent experience or education as 686
838+determined by the commission or commissioner.] 687
839+[(B)] (d) (1) Each applicant [applying for a real estate broker's license 688
840+on or after January 1, 2022,] shall, before being admitted to such 689
841+examination, prove to the satisfaction of the commission or the 690
842+Commissioner of Consumer Protection that the applicant [(i) (I)] (A) (i) 691
843+has been actively engaged as a licensed real estate salesperson under the 692 Substitute Bill No. 6769
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850+supervision of a [licensed real estate broker in this state for a] 693
851+supervising licensee, who is licensed in this state, for a minimum period 694
852+of three years immediately preceding the date the applicant filed such 695
853+applicant's application, during which period such salesperson engaged 696
854+in the real estate business for at least one thousand five hundred hours 697
855+[during the three years immediately preceding the date on which such 698
856+applicant filed such applicant's application,] and such supervising 699
857+[licensed real estate broker] licensee, or such supervising [licensed real 700
858+estate broker's] licensee's authorized representative, has certified the 701
859+accuracy of a record of such applicant's active engagement on a form 702
860+provided by such applicant to such supervising [licensed real estate 703
861+broker] licensee or authorized representative, [(II)] (ii) has successfully 704
862+completed a course approved by the commission or commissioner in 705
863+real estate principles and practices of at least sixty classroom hours of 706
864+study, [(III)] (iii) has successfully completed a course approved by the 707
865+commission or commissioner in real estate legal compliance consisting 708
866+of at least fifteen classroom hours of study, [(IV)] (iv) has successfully 709
867+completed a course approved by the commission or commissioner in 710
868+real estate brokerage principles and practices consisting of at least 711
869+fifteen classroom hours, [(V)] (v) has successfully completed two 712
870+elective courses, each consisting of fifteen classroom hours of study, as 713
871+prescribed by the commission or commissioner, and [(VI)] (vi) has 714
872+represented a seller, buyer, lessor or lessee in at least four real estate 715
873+transactions that closed during the three years immediately preceding 716
874+the date on which such applicant filed such applicant's application, or 717
875+[(ii)] (B) has equivalent experience or education as determined by the 718
876+commission or commissioner. Each supervising [licensed real estate 719
877+broker] licensee, or authorized representative of such supervising 720
878+[licensed real estate broker] licensee, shall certify the accuracy or 721
879+inaccuracy of a record provided by an applicant to such supervising 722
880+[licensed real estate broker] licensee or authorized representative under 723
881+subparagraph [(B)(i)(I)] (A)(i) of this subdivision not later than ninety 724
882+days after such applicant provides such record to such supervising 725
883+[licensed real estate broker] licensee or authorized representative. 726 Substitute Bill No. 6769
884+
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889+
890+(2) The commission or the [Commissioner of Consumer Protection] 727
891+commissioner shall waive the elective courses under subparagraph 728
892+[(A)(i)(V) or (B)(i)(V)] (A)(v) of subdivision (1) of this subsection if the 729
893+applicant has successfully completed at least twenty real estate 730
894+transactions within five years immediately preceding the date of 731
895+application. [As used in this subdivision, "real estate transaction" means 732
896+any transaction in which real property is legally transferred to another 733
897+party or in which a lease agreement is executed between a landlord and 734
898+a tenant.] 735
899+(3) Each applicant for a real estate salesperson's license shall, before 736
900+being admitted to such examination, prove to the satisfaction of the 737
901+commission or the [Commissioner of Consumer Protection ] 738
902+commissioner that the applicant (A) has successfully completed a course 739
903+approved by the commission or commissioner in real estate principles 740
904+and practices consisting of at least sixty classroom hours of study, or (B) 741
905+has equivalent experience or education as determined by the 742
906+commission or commissioner. 743
907+(4) Each applicant for a leasing agent license shall, before being 744
908+admitted to such examination, prove to the satisfaction of the 745
909+commission or the commissioner that the applicant (A) has successfully 746
910+completed a course or courses approved by the commission or 747
911+commissioner in real estate leasing, including, but not limited to, 748
912+training on fair housing law, landlord tenant law and security deposit 749
913+management, consisting of at least twenty classroom hours of study, or 750
914+(B) has equivalent experience or education as determined by the 751
915+commission or commissioner. 752
916+(e) The provisions of subsections (c) and (d) of this section shall not 753
917+apply to any renewal of a real estate broker's license, or a real estate 754
918+salesperson's license issued prior to October 1, 1973. 755
919+(f) All licenses issued under the provisions of this chapter shall expire 756
920+[annually] biennially. At the time of application for a real estate broker's 757
921+license, there shall be paid to the [commission] department, for each 758 Substitute Bill No. 6769
922+
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926+26 of 59
927+
928+individual applicant and for each [proposed active member or officer of 759
929+a firm, partnership, association or corporation] business entity, the sum 760
930+of [five hundred sixty-five] one thousand one hundred thirty dollars, 761
931+and for the [annual] biennial renewal thereof, the sum of [three hundred 762
932+seventy-five] seven hundred fifty dollars, except that for licenses 763
933+expiring on March 31, 2022, a prorated renewal fee shall be charged to 764
934+reflect the fact that the March 2022, renewal shall expire on November 765
935+30, 2023. At the time of application for a real estate salesperson's or 766
936+leasing agent's license, there shall be paid to the [commission two 767
937+hundred eighty-five] department five hundred seventy dollars and for 768
938+the [annual] biennial renewal thereof the sum of [two hundred eighty-769
939+five] five hundred seventy dollars. [Three] Six dollars of each such 770
940+[annual] biennial renewal fee shall be payable to the Real Estate 771
941+Guaranty Fund established pursuant to section 20-324a, as amended by 772
942+this act. A real estate broker's license issued to any [partnership, 773
943+association or corporation] business entity shall entitle the [individual 774
944+designated in the application, as provided in section 20-312] designated 775
945+broker, upon compliance with the terms of this chapter, but without the 776
946+payment of any further fee, to perform all of the acts of a real estate 777
947+broker under this chapter on behalf of such [partnership, association or 778
948+corporation] business entity. Any license which expires and is not 779
949+renewed [pursuant to this subsection] on or before the ninetieth day 780
950+following the expiration date of such license may be reinstated by the 781
951+commission [, if, not later than two years after the date of expiration, the 782
952+former licensee pays to the commission for] or department, in the 783
953+commission's or department's discretion, provided such license has 784
954+expired for less than three years and the former licensee (1) attests that 785
955+such former licensee did not work in this state in the occupation or 786
956+profession in which such former licensee was licensed while such 787
957+former licensee's license was lapsed, (2) pays the renewal fee due for 788
958+such license for the year in which such license is reinstated, and (3) 789
959+completes any continuing education required for such license for the 790
960+year preceding such reinstatement. If an applicant for reinstatement 791
961+worked in this state in the occupation or profession in which such 792
962+applicant was formerly licensed while such license was lapsed, the 793 Substitute Bill No. 6769
963+
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967+27 of 59
968+
969+applicant shall pay all license and late fees due and owing for the lapse 794
970+period and demonstrate that such applicant has completed all 795
971+continuing education required for such license for the year preceding 796
972+such reinstatement. Such late fees shall be assessed for each real estate 797
973+broker's license [the sum] in the amount of three hundred seventy-five 798
974+dollars and for each real estate salesperson's or leasing agent's license 799
975+[the sum] in the amount of two hundred eighty-five dollars for each year 800
976+or fraction thereof from the date of expiration of the previous license to 801
977+the date of payment for reinstatement. [, except that any] If a license has 802
978+lapsed for at least three years, the former licensee is ineligible for 803
979+reinstatement under this subsection and may apply for a new license. 804
980+Notwithstanding any contrary provision of this subsection, a former 805
981+licensee whose license expired after such former licensee entered 806
982+military service shall be reinstated without payment of any fee if an 807
983+application for reinstatement is filed with the commission [within two 808
984+years after the date of expiration] or department before the third 809
985+anniversary of such expiration date, and the former licensee provides 810
986+evidence that is sufficient to demonstrate to the commission or 811
987+department that such former licensee completed at least six hours of 812
988+continuing education for such license, including, but not limited to, the 813
989+mandatory continuing education required for such license, during the 814
990+calendar year preceding the date on which such application for 815
991+reinstatement is filed. Any such reinstated broker's license shall expire 816
992+on the next succeeding November thirtieth. [, except that any broker's 817
993+license that is reinstated before March 31, 2022, shall expire on March 818
994+31, 2022.] Any such reinstated real estate salesperson's license shall 819
995+expire on the next succeeding May thirty-first. 820
996+(g) [Any person whose application has been filed as provided in this 821
997+section and who is refused a license shall be given notice and afforded 822
998+an opportunity for hearing as provided in the regulations adopted by 823
999+the Commissioner of Consumer Protection.] Following a denial of a 824
1000+license or license renewal application filed under this section, the 825
1001+department shall send a notice to the applicant who filed such 826
1002+application disclosing such denial and that such applicant may request 827 Substitute Bill No. 6769
1003+
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1008+
1009+a hearing by submitting to the Commissioner of Consumer Protection a 828
1010+written hearing request not later than thirty days after the date such 829
1011+denial notice was sent to such applicant. If the applicant requests a 830
1012+hearing during such thirty-day period, the department shall send a 831
1013+notice to such applicant disclosing the grounds for such denial and 832
1014+conduct a hearing concerning such denial in accordance with the 833
1015+provisions of chapter 54. If the commissioner's denial is sustained after 834
1016+such hearing, the applicant may file a new application for such license 835
1017+or license renewal not sooner than one year after the date on which such 836
1018+denial was sustained. 837
1019+Sec. 12. Section 20-314a of the general statutes is repealed and the 838
1020+following is substituted in lieu thereof (Effective April 1, 2024): 839
1021+(a) The Commissioner of Consumer Protection, with the advice and 840
1022+assistance of the commission, may adopt regulations, in accordance 841
1023+with chapter 54, relating to the approval of schools offering prelicensing 842
1024+and continuing education courses, [in real estate principles and practice 843
1025+and related subjects,] the content of such courses and the advertising to 844
1026+the public of the services [of] offered by such schools. Such regulations 845
1027+shall not require [(1)] approval of instructors at such schools. [, or (2) a 846
1028+course to be conducted in a classroom location approved for such use 847
1029+by a local fire marshal provided the course is conducted in a hotel, 848
1030+restaurant or other public building or a place of public assembly, as 849
1031+defined in section 19-13-B105 of the regulations of Connecticut state 850
1032+agencies.] No school may be disapproved solely because the school's 851
1033+courses are offered or taught by electronic means, and no course may be 852
1034+disapproved solely because the course is offered or taught by electronic 853
1035+means if such course satisfies the requirements established in section 4 854
1036+of this act. 855
1037+(b) The commission or department may exempt any applicant for a 856
1038+real estate broker's license from the requirements concerning experience 857
1039+under the provisions of subsection (d) of section 20-314, as amended by 858
1040+this act, if the commission or department determines that such applicant 859
1041+is unable to meet such requirements solely because such applicant has 860 Substitute Bill No. 6769
1042+
1043+
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1047+
1048+been subjected to discrimination based on race, creed or color, which 861
1049+discrimination interfered with such applicant's ability to meet such 862
1050+requirements. 863
1051+Sec. 13. Subsections (b) and (c) of section 20-316 of the general statutes 864
1052+are repealed and the following is substituted in lieu thereof (Effective 865
1053+April 1, 2024): 866
1054+(b) No license under this chapter shall be issued by the [Department 867
1055+of Consumer Protection] department to any applicant (1) whose 868
1056+application for a license as a real estate [broker or real estate salesperson] 869
1057+licensee has, within one year prior to the date of [his] such applicant's 870
1058+application under this chapter, been rejected in this state, in any other 871
1059+state or in the District of Columbia, or (2) whose license as a real estate 872
1060+[broker or real estate salesperson] licensee has, within one year prior to 873
1061+the date of [his] such applicant's application under this chapter, been 874
1062+revoked in this state, in any other state or in the District of Columbia. 875
1063+(c) No real estate license [as a real estate broker or real estate 876
1064+salesperson] shall be issued under this chapter to any person who [has 877
1065+not attained the age of] is younger than eighteen years of age. 878
1066+Sec. 14. Section 20-317 of the general statutes is repealed and the 879
1067+following is substituted in lieu thereof (Effective April 1, 2024): 880
1068+(a) A person licensed in another state [as a real estate broker or 881
1069+salesperson] to engage in the real estate business may become a real 882
1070+estate [broker or real estate salesperson] licensee in this state by 883
1071+conforming to all of the provisions of this chapter. The commission or 884
1072+Commissioner of Consumer Protection shall recognize a current, valid 885
1073+license issued to a currently practicing, competent real estate [broker or 886
1074+real estate salesperson] professional engaging in the real estate business 887
1075+in, and recognized by, another state as satisfactorily qualifying [the 888
1076+broker or salesperson] such real estate professional for a license as a real 889
1077+estate [broker or real estate salesperson] licensee under this chapter, 890
1078+provided (1) the laws of the state in which [the broker or salesperson] 891 Substitute Bill No. 6769
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1084+
1085+such real estate professional is licensed require that applicants for 892
1086+licenses as real estate [brokers and real estate salespersons] licensees 893
1087+establish their competency by written examinations, [and allow licenses 894
1088+to be issued to residents of the state of Connecticut, licensed under this 895
1089+chapter, without examination,] (2) the licensure requirements of such 896
1090+state are substantially similar to or higher than those of this state, and 897
1091+(3) [the broker or salesperson] such real estate professional has no 898
1092+disciplinary proceeding or unresolved complaint pending against [the 899
1093+broker or salesperson] such real estate professional. If [the] an applicant 900
1094+real estate professional is licensed in a state that does not have such 901
1095+requirements, such applicant real estate professional shall be required 902
1096+to pass the Connecticut portion of the real estate examination. 903
1097+(b) [Every applicant licensed in another state shall file an irrevocable 904
1098+consent that suits and actions may be commenced against such 905
1099+applicant in the proper court in any judicial district of the state in which 906
1100+a cause of action may arise or in which the plaintiff may reside, by the 907
1101+service of any process or pleading, authorized by the laws of this state, 908
1102+on the chairperson of the commission, such consent stipulating and 909
1103+agreeing that such service of such process or pleading shall be taken and 910
1104+held in all courts to be as valid and binding as if service had been made 911
1105+upon such applicant in the state of Connecticut. If any process or 912
1106+pleadings under this chapter are served upon the chairperson, it shall 913
1107+be by duplicate copies, one of which shall be filed in the office of the 914
1108+commission, and the other immediately forwarded by registered or 915
1109+certified mail, to the applicant against whom such process or pleadings 916
1110+are directed, at the last-known address of such applicant as shown by 917
1111+the records of the department. No default in any such proceedings or 918
1112+action shall be taken unless it appears by affidavit of the chairperson of 919
1113+the commission that a copy of the process or pleading was mailed to the 920
1114+defendant as required by this subsection, and no judgment by default 921
1115+shall be taken in any such action or proceeding within twenty days after 922
1116+the date of mailing of such process or pleading to the out-of-state 923
1117+defendant.] A real estate professional who satisfies the requirements 924
1118+established in subsection (a) of this section may apply for licensure in 925 Substitute Bill No. 6769
1119+
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1124+
1125+this state as set forth in section 21a-11b. 926
1126+Sec. 15. Section 20-319 of the general statutes is repealed and the 927
1127+following is substituted in lieu thereof (Effective April 1, 2024): 928
1128+(a) The commission shall authorize the [Department of Consumer 929
1129+Protection] department to issue [an annual] a two-year renewal license 930
1130+to any applicant who possesses the qualifications specified in, and 931
1131+[otherwise] has otherwise complied with the provisions of, this chapter 932
1132+and any regulation adopted [under] pursuant to this chapter. The 933
1133+commission shall authorize [said] the department to issue [an annual] a 934
1134+two-year renewal of a real estate broker's license to any business entity 935
1135+licensed pursuant to subsection (b) of section 20-312, as amended by this 936
1136+act, provided such business entity: (1) Was so licensed as of September 937
1137+30, 2005, notwithstanding the fact such business entity does not meet the 938
1138+requirements for publicly traded corporations required by subdivision 939
1139+[(3)] (5) of subsection (b) of section 20-312, as amended by this act, or (2) 940
1140+changes [its] such business entity's designated [real estate] broker 941
1141+pursuant to subsection (c) of section 20-312, as amended by this act. 942
1142+(b) There [is] are hereby established [an annual] two-year renewal 943
1143+[license] licenses to be issued by the [Department of Consumer 944
1144+Protection. Persons licensed in accordance with the provisions of this 945
1145+chapter] department to real estate licensees. Each real estate licensee 946
1146+who files an application with the department seeking a two-year 947
1147+renewal license shall fulfill a continuing education requirement. 948
1148+[Applicants] Each applicant for [an annual] a two-year renewal license 949
1149+[for real estate brokers or real estate salespersons] shall, in addition to 950
1150+the other requirements imposed by the provisions of this chapter, [in 951
1151+any even-numbered year,] submit to the commission or department 952
1152+proof [of] that such applicant is in compliance with the continuing 953
1153+education requirements [of] established in this [subsection to the 954
1154+commission. Each] section. Each real estate licensee shall pay [an annual 955
1155+four-dollar] a biennial eight-dollar continuing education processing fee 956
1156+to cover the administrative costs associated with [the review] reviewing 957
1157+and auditing [of] continuing education submissions. The continuing 958 Substitute Bill No. 6769
1158+
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1162+32 of 59
1163+
1164+education requirement for real estate licensees, other than leasing 959
1165+agents, may be satisfied by successful completion of any of the following 960
1166+during the two-year period preceding [such] a renewal: (1) A course or 961
1167+courses, approved by the commission or department, of continuing 962
1168+education in current real estate practices and licensing laws, including, 963
1169+but not limited to, practices and laws concerning common interest 964
1170+communities, consisting of not less than twelve hours of classroom 965
1171+study; or (2) a written examination prepared and administered by either 966
1172+the [Department of Consumer Protection] department, or by a national 967
1173+testing service approved by the department, which demonstrates a 968
1174+knowledge of current real estate practices and licensing laws; or (3) 969
1175+equivalent continuing educational experience or study as determined 970
1176+by regulations adopted pursuant to subsection (d) of this section. An 971
1177+applicant for examination under subdivision (2) of this subsection shall 972
1178+pay the required examination fee to the national testing service, if 973
1179+administered by such testing service, or to the [Department of 974
1180+Consumer Protection] department, if administered by the department. 975
1181+In order to receive a two-year renewal license under this section, a 976
1182+leasing agent shall complete at least four hours of continuing education 977
1183+during the two-year period beginning twenty-seven months before the 978
1184+renewal date and ending three months before the renewal date, and at 979
1185+least one hour of such continuing education shall address fair housing 980
1186+law. 981
1187+(c) If the commission or department refuses to grant [an annual] a 982
1188+two-year renewal license, the licensee or applicant, upon written notice 983
1189+received as provided for in this chapter, may have recourse to any of the 984
1190+remedies provided by sections 20-314, as amended by this act, and 20-985
1191+322. 986
1192+(d) The Commissioner of Consumer Protection, in consultation with 987
1193+the commission, shall adopt regulations, in accordance with chapter 54, 988
1194+[concerning the approval of schools, institutions or organizations 989
1195+offering courses in current real estate practices and licensing laws, 990
1196+including, but not limited to, practices and laws concerning common 991 Substitute Bill No. 6769
1197+
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1202+
1203+interest communities, and the content of such courses] to establish 992
1204+continuing education requirements. Such regulations shall include, but 993
1205+not be limited to: (1) Specifications for meeting equivalent continuing 994
1206+educational experience or study; and (2) exceptions from continuous 995
1207+education requirements for reasons of health or instances of individual 996
1208+hardship. [No school, institution or organization that offers a course in 997
1209+current real estate practices and licensing laws may be disapproved 998
1210+solely because its courses are offered or taught by electronic means, and 999
1211+no course may be disapproved solely because it is offered or taught by 1000
1212+electronic means.] 1001
1213+(e) If a real estate licensee fails to satisfy the continuing education 1002
1214+requirements established pursuant to this section for any two-year 1003
1215+license period, the real estate licensee shall pay to the department a fee 1004
1216+in the amount of: 1005
1217+(1) Three hundred fifteen dollars if such licensee reports to the 1006
1218+department, in a form and manner prescribed by the department, that 1007
1219+such real estate licensee failed to satisfy such continuing education 1008
1220+requirements during such license period but completed such continuing 1009
1221+education requirements not later than two months after such license 1010
1222+period expired; or 1011
1223+(2) Six hundred twenty-five dollars if such licensee reports to the 1012
1224+department, in a form and manner prescribed by the department, that 1013
1225+such real estate licensee failed to satisfy such continuing education 1014
1226+requirements during such license period but completed such continuing 1015
1227+education requirements more than two months after such license period 1016
1228+expired but not later than four months after such license period expired. 1017
1229+Sec. 16. Section 20-319a of the general statutes is repealed and the 1018
1230+following is substituted in lieu thereof (Effective April 1, 2024): 1019
1231+(a) [Any] Each licensed real estate salesperson, associate broker or 1020
1232+leasing agent who transfers [his employment from one broker to another 1021
1233+or his] such real estate salesperson's, associate broker's or leasing agent's 1022 Substitute Bill No. 6769
1234+
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1239+
1240+affiliation with a broker [as an independent contractor] or property 1023
1241+owner shall register such transfer with, and pay a registration fee of 1024
1242+twenty-five dollars to, the [commission] department. 1025
1243+(b) A fee of twenty-five dollars shall be paid to the [commission] 1026
1244+department for the issuance of a license certification. 1027
1245+(c) A fee of twenty-five dollars shall be paid to the [Department of 1028
1246+Consumer Protection] department for any change made to, or transfer 1029
1247+of, a team's registration after the team files an initial registration with 1030
1248+the department pursuant to [subdivision (1) of] subsection (e) of section 1031
1249+20-312, as amended by this act. 1032
1250+(d) If a team transfers to a new supervising licensee, the new 1033
1251+supervising licensee shall electronically update the team's registration 1034
1252+information with the department not later than fourteen calendar days 1035
1253+after such transfer. 1036
1254+Sec. 17. Section 20-320 of the general statutes is repealed and the 1037
1255+following is substituted in lieu thereof (Effective April 1, 2024): 1038
1256+(a) The [Department of Consumer Protection] department may [, 1039
1257+upon the request of the commission or upon the verified complaint in 1040
1258+writing of any person, if such complaint, or such complaint together 1041
1259+with evidence, documentary or otherwise, presented in connection with 1042
1260+such complaint, shall make out a prima facie case,] investigate the 1043
1261+actions of any [real estate broker or real estate salesperson or any person 1044
1262+who assumes to act in any of such capacities] person who engages in the 1045
1263+real estate business or offers real estate courses within this state. The 1046
1264+commission or department may temporarily suspend or permanently 1047
1265+revoke any license or registration issued under the provisions of this 1048
1266+chapter and, in addition to or in lieu of such suspension or revocation, 1049
1267+may, in [its] the commission's or department's discretion, impose a fine 1050
1268+of not more than [two] five thousand dollars per violation at any time 1051
1269+when, after proceedings as provided in section 20-321, the commission 1052
1270+or department finds that the real estate licensee has by false or 1053 Substitute Bill No. 6769
1271+
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1276+
1277+fraudulent misrepresentation obtained a license or registration or that 1054
1278+the real estate licensee [is guilty of any of the following] has: (1) 1055
1279+[Making] Made any material misrepresentation; (2) [making] made any 1056
1280+false promise of a character likely to influence, persuade or induce; (3) 1057
1281+[acting] acted as an agent for more than one party in a transaction 1058
1282+without the knowledge of all parties for whom the real estate licensee 1059
1283+[acts] acted; (4) [representing or attempting] represented, or attempted 1060
1284+to represent, a real estate broker, other than the real estate licensee's 1061
1285+[employer or the broker with whom the licensee is affiliated] affiliated 1062
1286+or supervising licensee, without the express knowledge and consent of 1063
1287+[the] such real estate licensee's [employer or] affiliated [broker] or 1064
1288+supervising licensee; (5) [failing] failed, within a reasonable time, to 1065
1289+account for or remit any moneys [coming] which came into the real 1066
1290+estate licensee's possession and which belong to others; (6) [entering] 1067
1291+entered into an exclusive listing contract or buyer agency contract which 1068
1292+contains a fixed termination date if such contract also provides for an 1069
1293+automatic continuation of the period of such contract beyond such date; 1070
1294+(7) [failing] failed to deliver immediately a copy of any instrument to 1071
1295+any party or parties executing [the] such instrument, where such 1072
1296+instrument has been prepared by the real estate licensee or under [the] 1073
1297+such real estate licensee's supervision and where such instrument 1074
1298+relates to the employment of [the] such real estate licensee or to any 1075
1299+matters pertaining to the consummation of a lease, or the purchase, sale 1076
1300+or exchange of real property or any other type of real estate transaction 1077
1301+in which [the] such real estate licensee may participate as a [broker or a 1078
1302+salesperson] real estate licensee; (8) [conviction] been convicted, in a 1079
1303+court of competent jurisdiction, of forgery, embezzlement, obtaining 1080
1304+money under false pretenses, larceny, extortion, conspiracy to defraud 1081
1305+[,or other like] or a similar offense, [or offenses,] provided suspension 1082
1306+or revocation under this subdivision shall be subject to the provisions of 1083
1307+section 46a-80; (9) [collecting] collected compensation or a commission 1084
1308+in advance of services to be performed and [failing] failed, upon 1085
1309+demand of the person [paying the] who paid such compensation or [the] 1086
1310+commission, to render an accounting of the use of such [money] 1087
1311+compensation or commission; (10) [commingling] commingled funds of 1088 Substitute Bill No. 6769
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1318+others with the real estate licensee's own funds, or [failing] failed to keep 1089
1319+funds of others in an escrow or [trustee] trust account; (11) engaged in 1090
1320+any act or conduct which constitutes dishonest, fraudulent or improper 1091
1321+dealings; (12) [failing] failed to provide the disclosures required by 1092
1322+section 20-325c, [;] as amended by this act; or (13) [a violation of] violated 1093
1323+any provision of this chapter or any regulation adopted under this 1094
1324+chapter. [Any such suspension or revocation of a license or imposition 1095
1325+of a fine by the commission shall be a proposed final decision and 1096
1326+submitted to the commissioner in accordance with the provisions of 1097
1327+subsection (b) of section 21a-7.] Any fine collected pursuant to this 1098
1328+section shall be deposited in the Real Estate Guaranty Fund established 1099
1329+pursuant to section 20-324a, as amended by this act. 1100
1330+(b) No person shall be relieved of responsibility for the conduct or 1101
1331+actions of such person's agents, employees or officers by reason of such 1102
1332+person's compliance with the provisions of this chapter. No person who 1103
1333+engages in the real estate business shall be relieved of responsibility for 1104
1334+such person's own conduct or actions by reason of such person's 1105
1335+employment by, or association with, any real estate licensee or 1106
1336+development owner. 1107
1337+Sec. 18. Section 20-320a of the general statutes is repealed and the 1108
1338+following is substituted in lieu thereof (Effective April 1, 2024): 1109
1339+[(a)] No real estate [broker or real estate salesperson] licensee, no 1110
1340+person affiliated with [such broker or salesperson] a real estate licensee, 1111
1341+and no person engaging in the real estate business may receive a fee, 1112
1342+commission or other form of referral fee for the referral of any buyer of 1113
1343+real property to (1) an attorney-at-law admitted to practice in this state 1114
1344+or any person affiliated with such attorney or (2) any mortgage broker, 1115
1345+any lender, as defined in subdivision (5) of section 49-31d, or any person 1116
1346+affiliated with such mortgage broker or lender. 1117
1347+[(b) The Department of Consumer Protection may, upon the request 1118
1348+of the commission or upon the verified complaint in writing of any 1119
1349+person, if such complaint, or such complaint together with evidence, 1120 Substitute Bill No. 6769
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1356+documentary or otherwise, presented in connection with such 1121
1357+complaint, shall make out a prima facie case, investigate the actions of 1122
1358+any real estate broker or real estate salesperson or any person who 1123
1359+assumes to act in any of such capacities within this state. The 1124
1360+commission may temporarily suspend or permanently revoke any 1125
1361+license issued under the provisions of this chapter, and, in addition to 1126
1362+or in lieu of such suspension or revocation, may, in its discretion, impose 1127
1363+a fine of not more than one thousand dollars for the first offense at any 1128
1364+time when, after proceedings as provided in section 20-321, the 1129
1365+commission finds that the licensee is guilty of violating any of the 1130
1366+provisions of subsection (a) of this section. Any such suspension or 1131
1367+revocation of a license or imposition of a fine by the commission shall 1132
1368+be a proposed final decision and submitted to the commissioner in 1133
1369+accordance with the provisions of subsection (b) of section 21a-7.] 1134
1370+Sec. 19. Subsection (a) of section 20-320b of the general statutes is 1135
1371+repealed and the following is substituted in lieu thereof (Effective April 1136
1372+1, 2024): 1137
1373+(a) A real estate [broker or real estate salesperson licensed under this 1138
1374+chapter] licensee shall not influence residential real estate appraisals. 1139
1375+[For the purposes of this section, "influence residential real estate 1140
1376+appraisals" includes, but is not limited to, refusal or intentional failure 1141
1377+to refer a homebuyer, or encouraging other real estate brokers or real 1142
1378+estate salespersons not to refer a homebuyer, to a mortgage broker, as 1143
1379+defined in section 36a-760, or a lender, as defined in section 36a-760, 1144
1380+based solely on the fact that the mortgage broker or lender uses an 1145
1381+appraiser who has provided an appraisal reflecting a fair market value 1146
1382+estimate that was less than the sale contract price.] 1147
1383+Sec. 20. Section 20-323 of the general statutes is repealed and the 1148
1384+following is substituted in lieu thereof (Effective April 1, 2024): 1149
1385+Any real estate licensee under this chapter who is convicted of a 1150
1386+violation of any of the offenses enumerated in subdivision (8) of 1151
1387+subsection (a) of section 20-320, as amended by this act, may incur a 1152 Substitute Bill No. 6769
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1393+
1394+forfeiture of [his or her] such real estate licensee's license and all moneys 1153
1395+that may have been paid for such license. The clerk of any court in which 1154
1396+such conviction has been rendered shall forward to the commission 1155
1397+without charge a certified copy of such conviction. The [commissioner] 1156
1398+Commissioner of Consumer Protection may revoke such licensee's 1157
1399+license after proceedings as provided in section 20-321. Such notice shall 1158
1400+be conclusive of the revocation of such license. Application for 1159
1401+reinstatement of such license shall be subject to the provisions of section 1160
1402+46a-80. 1161
1403+Sec. 21. Section 20-324a of the general statutes is repealed and the 1162
1404+following is substituted in lieu thereof (Effective April 1, 2024): 1163
1405+The commission shall establish and maintain a Real Estate Guaranty 1164
1406+Fund from which, subject to the provisions of this section and sections 1165
1407+[20-324a] 20-324b to [20-324j] 20-324i, inclusive, as amended by this act, 1166
1408+any person aggrieved by any action of a real estate [broker or real estate 1167
1409+salesperson] licensee, duly licensed in this state under section 20-312, as 1168
1410+amended by this act, by reason of the embezzlement of money or 1169
1411+property, or money or property unlawfully obtained from any person 1170
1412+by false pretenses, artifice or forgery or by reason of any fraud, 1171
1413+misrepresentation or deceit by or on the part of any such real estate 1172
1414+[broker or real estate salesperson] licensee or the unlicensed employee 1173
1415+of any such real estate [broker] licensee, may recover, upon approval by 1174
1416+the commission of an application brought pursuant to the provisions of 1175
1417+section 20-324e, as amended by this act, compensation in an amount not 1176
1418+exceeding in the aggregate the sum of twenty-five thousand dollars in 1177
1419+connection with any one real estate transaction or claim, regardless of 1178
1420+the number of persons aggrieved or parcels of real estate involved in 1179
1421+such real estate transaction or claim. 1180
1422+Sec. 22. Section 20-324b of the general statutes is repealed and the 1181
1423+following is substituted in lieu thereof (Effective April 1, 2024): 1182
1424+[Any person who receives a real estate broker's or real estate 1183
1425+salesperson's license under this chapter for the first time shall] Each real 1184 Substitute Bill No. 6769
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1431+
1432+estate licensee shall, upon application for a license under this chapter, 1185
1433+pay an additional one-time fee of twenty dollars in addition to all other 1186
1434+fees payable, which additional fee shall be credited to the Real Estate 1187
1435+Guaranty Fund. The Real Estate Guaranty Fund shall also be credited as 1188
1436+provided in sections 20-314, as amended by this act, and 20-320, as 1189
1437+amended by this act. 1190
1438+Sec. 23. Section 20-324d of the general statutes is repealed and the 1191
1439+following is substituted in lieu thereof (Effective April 1, 2024): 1192
1440+No application to recover compensation under sections 20-324a to 1193
1441+[20-324j] 20-324i, inclusive, as amended by this act, which might 1194
1442+subsequently result in an order for collection from the Real Estate 1195
1443+Guaranty Fund shall be brought later than two years from the final 1196
1444+determination of, or expiration of time for appeal in connection with, 1197
1445+any judgment. 1198
1446+Sec. 24. Subsections (a) to (f), inclusive, of section 20-324e of the 1199
1447+general statutes are repealed and the following is substituted in lieu 1200
1448+thereof (Effective April 1, 2024): 1201
1449+(a) When any aggrieved person commences any action for a 1202
1450+judgment which may result in collection from the Real Estate Guaranty 1203
1451+Fund, the aggrieved person shall notify the commission or department 1204
1452+in writing to this effect at the time of the commencement of such action. 1205
1453+Such written notice shall toll the time for making application to the 1206
1454+commission pursuant to section 20-324d, as amended by this act. The 1207
1455+commission or department shall have the right to enter an appearance, 1208
1456+intervene in or defend any such action and may waive the required 1209
1457+written notice for good cause shown. 1210
1458+(b) When any aggrieved person recovers a valid judgment in the 1211
1459+Superior Court against any real estate [broker or real estate salesperson] 1212
1460+licensee or the unlicensed employee of any such real estate [broker] 1213
1461+licensee for loss or damages sustained by reason of the embezzlement 1214
1462+of money or property, or money or property unlawfully obtained from 1215 Substitute Bill No. 6769
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1468+
1469+any person by false pretenses, artifice or forgery or by reason of any 1216
1470+fraud, misrepresentation or deceit by or on the part of such real estate 1217
1471+[broker or salesperson] licensee or the unlicensed employee of any such 1218
1472+real estate broker, such aggrieved person may upon the final 1219
1473+determination of, or expiration of time for appeal in connection with, 1220
1474+any judgment, apply to the commission for an order directing payment 1221
1475+out of the Real Estate Guaranty Fund of the amount unpaid upon the 1222
1476+judgment, subject to the limitations stated in section 20-324a, as 1223
1477+amended by this act, and the limitations specified in this section. 1224
1478+(c) The commission shall proceed upon such application in a 1225
1479+summary manner, and, upon the hearing thereof, the aggrieved person 1226
1480+shall be required to show that: (1) [He] Such aggrieved person is not a 1227
1481+spouse of the debtor or the personal representative of such spouse; (2) 1228
1482+[he] such aggrieved person has complied with all the requirements of 1229
1483+this section; (3) [he] such aggrieved person has obtained a judgment as 1230
1484+provided in subsection (b) of this section, stating the amount thereof and 1231
1485+the amount owing thereon at the date of the application; (4) [he] such 1232
1486+aggrieved person has caused to be issued a writ of execution upon the 1233
1487+judgment and the officer executing the same has made a return showing 1234
1488+that no personal or real property of the judgment debtor liable to be 1235
1489+levied upon in satisfaction of the judgment could be found, or that the 1236
1490+amount realized on the sale of them or of such of them as were found, 1237
1491+under the execution, was insufficient to satisfy the judgment, stating the 1238
1492+amount so realized and the balance remaining due on the judgment 1239
1493+after application thereon of the amount realized; (5) [he] such aggrieved 1240
1494+person has made all reasonable searches and inquiries to ascertain 1241
1495+whether the judgment debtor possesses real or personal property or 1242
1496+other assets, liable to be sold or applied in satisfaction of the judgment; 1243
1497+and (6) that by such search [he] such aggrieved person has discovered 1244
1498+no personal or real property or other assets liable to be sold or applied, 1245
1499+or that [he] such aggrieved person has discovered certain of them, 1246
1500+describing them, owned by the judgment debtor and liable to be so 1247
1501+applied, and that [he] such aggrieved person has taken all necessary 1248
1502+action and proceedings for the realization thereof, and that the amount 1249 Substitute Bill No. 6769
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1509+thereby realized was insufficient to satisfy the judgment, stating the 1250
1510+amount so realized and the balance remaining due on the judgment 1251
1511+after application of the amount realized. 1252
1512+(d) Whenever the aggrieved person satisfies the commission that it is 1253
1513+not practicable to comply with one or more of the requirements 1254
1514+enumerated in subdivisions (4), (5) and (6) of subsection (c) of this 1255
1515+section and that [the] such aggrieved person has taken all reasonable 1256
1516+steps to collect the amount of the judgment or the unsatisfied part 1257
1517+thereof and has been unable to collect the same, the commission may in 1258
1518+its discretion waive such requirements. 1259
1519+(e) The commission shall order payment from the Real Estate 1260
1520+Guaranty Fund of any sum it shall find to be payable upon the claim, 1261
1521+pursuant to the provisions of and in accordance with the limitations 1262
1522+contained in this section and section 20-324a, as amended by this act, if 1263
1523+the commission is satisfied, upon the hearing, of the truth of all matters 1264
1524+required to be shown by the aggrieved person by subsection (c) of this 1265
1525+section and that [the] such aggrieved person has fully pursued and 1266
1526+exhausted all remedies available to [him] such aggrieved person for 1267
1527+recovering the amount awarded by the judgment of the court. 1268
1528+(f) If the commission pays from the Real Estate Guaranty Fund any 1269
1529+amount in settlement of a claim or toward satisfaction of a judgment 1270
1530+against a [licensed real estate broker or real estate salesperson] real 1271
1531+estate licensee pursuant to an order under subsection (e) of this section, 1272
1532+such [broker or salesperson] real estate licensee shall not be eligible to 1273
1533+receive a new license until [he] such real estate licensee has repaid in 1274
1534+full, plus interest at a rate to be determined by the commission and 1275
1535+which shall reflect current market rates, the amount paid from the fund 1276
1536+on [his] such real estate licensee's account. A discharge in bankruptcy 1277
1537+shall not relieve a person from the penalties and disabilities provided in 1278
1538+this subsection. 1279
1539+Sec. 25. Section 20-324i of the general statutes is repealed and the 1280
1540+following is substituted in lieu thereof (Effective April 1, 2024): 1281 Substitute Bill No. 6769
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1547+The Commissioner of Consumer Protection, with the advice and 1282
1548+assistance of the commission, may adopt regulations, in accordance 1283
1549+with chapter 54, to carry out the provisions of sections 20-324a to [20-1284
1550+324j] 20-324h, inclusive, as amended by this act. 1285
1551+Sec. 26. Section 20-325 of the general statutes is repealed and the 1286
1552+following is substituted in lieu thereof (Effective April 1, 2024): 1287
1553+Any person who engages in the real estate business [of a real estate 1288
1554+broker or real estate salesperson] without obtaining a license as 1289
1555+provided in this chapter shall be fined not more than one thousand 1290
1556+dollars per violation or imprisoned not more than six months or both, 1291
1557+and shall be ineligible to obtain a license for one year from the date of 1292
1558+conviction of such offense, except that the commission or Commissioner 1293
1559+of Consumer Protection may grant a license to such person within such 1294
1560+one-year period upon application and after a hearing on such 1295
1561+application. 1296
1562+Sec. 27. Subsection (a) of section 20-325a of the general statutes is 1297
1563+repealed and the following is substituted in lieu thereof (Effective April 1298
1564+1, 2024): 1299
1565+(a) [No] Except for an out-of-state real estate licensee who is an 1300
1566+individual and seeking to recover agreed compensation authorized 1301
1567+under subsection (e) of section 20-325l, as amended by this act, no 1302
1568+person who is not licensed under the provisions of this chapter, and who 1303
1569+was not so licensed at the time the person performed the acts or 1304
1570+rendered the services for which recovery is sought, shall commence or 1305
1571+bring any action in any court of this state, after October 1, 1971, to 1306
1572+recover any commission, compensation or other payment with respect 1307
1573+to any act done or service rendered by the person, the doing or 1308
1574+rendering of which is prohibited under the provisions of this chapter 1309
1575+except by persons duly licensed under this chapter. 1310
1576+Sec. 28. Section 20-325c of the general statutes is repealed and the 1311
1577+following is substituted in lieu thereof (Effective April 1, 2024): 1312 Substitute Bill No. 6769
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1584+[(a) As used in this section "residential real property" means one to 1313
1585+four-family residential real estate located in this state.] 1314
1586+[(b)] (a) Notwithstanding any provision of the general statutes, [to the 1315
1587+contrary,] no real estate [broker or real estate salesperson] licensee, other 1316
1588+than a leasing agent, and no person affiliated with such [broker or 1317
1589+salesperson] real estate licensee, who receives a fee, commission or other 1318
1590+valuable consideration for the sale of residential real property, may 1319
1591+receive a fee, commission or other valuable consideration for 1320
1592+negotiating, soliciting, arranging, placing or finding a first mortgage 1321
1593+loan for the buyer in connection with the same sale unless disclosure is 1322
1594+made in accordance with the provisions of subsection [(c)] (b) of this 1323
1595+section. Any fee, commission or other valuable consideration received 1324
1596+by such [broker or salesperson] real estate licensee for negotiating, 1325
1597+soliciting, arranging, placing or finding a first mortgage loan shall (1) be 1326
1598+related to the services actually performed, as determined by the Banking 1327
1599+Commissioner by regulations adopted pursuant to chapter 54, (2) not be 1328
1600+imposed for the referral of the buyer to the mortgage lender by such 1329
1601+[broker or salesperson] real estate licensee, and (3) be paid directly to 1330
1602+[the broker or salesperson] such real estate licensee by the buyer rather 1331
1603+than from the mortgage loan proceeds at the time of closing. 1332
1604+[(c)] (b) Any disclosure made pursuant to subsection [(b)] (a) of this 1333
1605+section shall be made to and acknowledged by the buyer prior to the 1334
1606+time the buyer signs a contract with the real estate [broker or 1335
1607+salesperson] licensee for mortgage brokering services. Such disclosure 1336
1608+shall include the following notice printed in at least ten-point boldface 1337
1609+capital letters: 1338
1610+I UNDERSTAND THAT THE REAL ESTATE BROKER OR 1339
1611+SALESPERSON IN THIS TRANSACTION HAS OFFERED TO ASSIST 1340
1612+ME IN FINDING A MORTGAGE LOAN. ADDITIONALLY, I 1341
1613+UNDERSTAND THAT THIS REAL ESTATE BROKER OR 1342
1614+SALESPERSON DOES NOT REPRESENT ANY PARTICULAR 1343
1615+MORTGAGE LENDER AND WILL ATTEMPT TO OBTAIN THE BEST 1344
1616+TERMS AVAILABLE WITHIN THE MORTGAGE LOAN MARKET 1345 Substitute Bill No. 6769
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1623+FOR MY SPECIFIC HOME FINANCING NEEDS. IF THE REAL 1346
1624+ESTATE BROKER OR SALESPERSON DOES NOT FULFILL HIS 1347
1625+FIDUCIARY OBLIGATION I MAY FILE A COMPLAINT WITH THE 1348
1626+DEPARTMENT OF BANKING. I ALSO UNDERSTAND THAT I MAY 1349
1627+ATTEMPT TO FIND A MORTGAGE LOAN TO FINANCE THE 1350
1628+PURCHASE OF MY HOME WITHOUT THE ASSISTANCE OF THE 1351
1629+REAL ESTATE BROKER OR SALESPERSON IN WHICH CASE I WILL 1352
1630+NOT BE OBLIGATED TO PAY A FEE TO THE REAL ESTATE BROKER 1353
1631+OR SALESPERSON. 1354
1632+[(d)] (c) No mortgage lender may refuse to close a mortgage loan 1355
1633+secured by residential real property because the buyer has not paid a 1356
1634+fee, commission or other valuable consideration to a real estate [broker 1357
1635+or salesperson] licensee for negotiating, soliciting, arranging, placing or 1358
1636+finding the first mortgage loan. 1359
1637+Sec. 29. Section 20-325d of the general statutes is repealed and the 1360
1638+following is substituted in lieu thereof (Effective April 1, 2024): 1361
1639+(a) [On and after January 1, 2018, a real estate broker or real estate 1362
1640+salesperson licensed under this chapter] A real estate licensee who 1363
1641+represents a seller, lessor, prospective purchaser or lessee in a real estate 1364
1642+transaction shall, upon request, disclose [,] in writing [,] the identity of 1365
1643+[his or her] the real estate licensee's client to any party to the transaction 1366
1644+who is not represented by another real estate [broker or real estate 1367
1645+salesperson licensed under this chapter. The real estate broker or real 1368
1646+estate salesperson shall make the disclosure required under this section: 1369
1647+(1) If the transaction concerns residential real property, as defined in 1370
1648+section 20-325c, (A) at the beginning of the first personal meeting 1371
1649+concerning the prospective purchaser's or lessee's specific needs in the 1372
1650+transaction, or (B) at the beginning of the first personal meeting with the 1373
1651+seller or lessor concerning the seller's or lessor's real property; or (2) if 1374
1652+the transaction is a commercial real estate transaction, as defined in 1375
1653+section 20-311, before the prospective purchaser or lessee signs the 1376
1654+purchase contract or lease. Such disclosure shall be signed by a 1377
1655+prospective purchaser or lessee and attached to any offer or agreement 1378 Substitute Bill No. 6769
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1662+to purchase or lease signed by a prospective purchaser or lessee] 1379
1663+licensee. 1380
1664+(b) Not later than the first personal meeting, a real estate licensee 1381
1665+shall: (1) Disclose in writing to a prospective party (A) the types of 1382
1666+agency relationships available to the prospective party, and (B) that the 1383
1667+prospective party should not share confidential information with the 1384
1668+real estate licensee until such prospective party has entered into a 1385
1669+written representation agreement with such real estate licensee; and (2) 1386
1670+for residential real estate transactions, provide to a prospective party 1387
1671+information on fair housing discrimination, including a description of 1388
1672+federal and state fair housing laws, protected classes, where to obtain 1389
1673+additional information and available resources. The disclosures 1390
1674+required pursuant to this subsection may be delivered electronically to 1391
1675+the prospective party. 1392
1676+(c) The Commissioner of Consumer Protection shall adopt such 1393
1677+regulations, in accordance with chapter 54, as the commissioner deems 1394
1678+necessary to carry out the provisions of this section. 1395
1679+Sec. 30. Section 20-325f of the general statutes is repealed and the 1396
1680+following is substituted in lieu thereof (Effective April 1, 2024): 1397
1681+No real estate broker shall make any unilateral offer of subagency or 1398
1682+agree to compensate, appoint, employ, cooperate with or otherwise 1399
1683+affiliate with a subagent for the sale or purchase of real property. 1400
1684+[without the informed written consent of the person whom the real 1401
1685+estate broker represents. Such written consent shall contain the name 1402
1686+and real estate license number of the real estate broker to be appointed 1403
1687+as the subagent and shall contain a statement notifying the person 1404
1688+whom the real estate broker represents that the law imposes vicarious 1405
1689+liability on the principal for the acts of the subagent.] 1406
1690+Sec. 31. Section 20-325h of the general statutes is repealed and the 1407
1691+following is substituted in lieu thereof (Effective April 1, 2024): 1408
1692+[(a)] No real estate licensee shall: (1) Reveal any confidential 1409 Substitute Bill No. 6769
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1697+46 of 59
1698+
1699+information concerning a prospective party or a person whom the real 1410
1700+estate licensee represented either as an agent, designated buyer agent or 1411
1701+[a] designated seller agent; (2) use any confidential information 1412
1702+concerning [that] such prospective party or person to [the] such 1413
1703+prospective party's or person's disadvantage; or (3) use any confidential 1414
1704+information concerning [that] such prospective party or person for [the] 1415
1705+such real estate [broker's or real estate salesperson's] licensee's 1416
1706+advantage or the advantage of a third party, except (A) as required by 1417
1707+legal process, (B) as necessary to defend [the] such real estate [broker or 1418
1708+real estate salesperson] licensee from allegations of wrongful or 1419
1709+negligent conduct, or (C) as necessary to prevent the commission of a 1420
1710+crime. 1421
1711+[(b) As used in this section, "confidential information" means facts 1422
1712+concerning a person's assets, liabilities, income, expenses, motivations 1423
1713+to purchase, rent or sell real property and previous offers received or 1424
1714+made to purchase or lease real property which are not authorized by the 1425
1715+client, a matter of general knowledge, part of a public record or file to 1426
1716+which access is authorized pursuant to section 1-210 or otherwise 1427
1717+subject to disclosure under any other provision of the general statutes 1428
1718+or any regulation of Connecticut state agencies.] 1429
1719+Sec. 32. Section 20-325l of the general statutes is repealed and the 1430
1720+following is substituted in lieu thereof (Effective April 1, 2024): 1431
1721+[(a) As used in this section: (1) "Licensed broker" means a person 1432
1722+licensed under this chapter as a real estate broker, (2) "licensed 1433
1723+salesperson" means a person licensed under this chapter as a real estate 1434
1724+salesperson, (3) "out-of-state broker" means a person licensed in another 1435
1725+state as a real estate broker who is not licensed as a real estate broker 1436
1726+under this chapter, (4) "out-of-state salesperson" means a person 1437
1727+licensed in another state as a real estate salesperson who is not licensed 1438
1728+as a real estate salesperson under this chapter, (5) "person" means a 1439
1729+person, as defined in section 20-311, and (6) "advertising" means 1440
1730+advertising, as defined in section 20-329a.] 1441 Substitute Bill No. 6769
1731+
1732+
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1735+47 of 59
1736+
1737+[(b)] (a) An out-of-state broker may perform acts with respect to a 1442
1738+commercial real estate transaction that require a license under this 1443
1739+chapter, provided the out-of-state broker: [complies with the laws of this 1444
1740+state with respect to the transaction and:] 1445
1741+(1) Works in cooperation with a licensed broker, whether in a 1446
1742+cobrokerage, referral or other cooperative agreement or arrangement; 1447
1743+(2) Enters into a written agreement with a licensed broker that 1448
1744+includes the terms of cooperation and any compensation to be paid by 1449
1745+the licensed broker and a statement that the out-of-state broker and the 1450
1746+out-of-state broker's agents will comply with the laws of this state; 1451
1747+(3) Provides the licensed broker a copy of the out-of-state broker's 1452
1748+license or other proof of licensure from the [jurisdictions] states where 1453
1749+the out-of-state broker maintains a license as a real estate broker; [and] 1454
1750+(4) Deposits all escrow funds, security deposits, and other money 1455
1751+received pursuant to the commercial real estate transaction to be held as 1456
1752+provided in section 20-324k unless the agreement required in 1457
1753+subdivision (2) of this subsection specifies otherwise; [.] 1458
1754+(5) Complies with the laws of this state with respect to the transaction; 1459
1755+and 1460
1756+(6) Is credentialled as a real estate broker in another state. 1461
1757+[(c)] (b) An out-of-state salesperson may perform acts with respect to 1462
1758+a commercial real estate transaction that require a license as a real estate 1463
1759+salesperson under this chapter, provided the out-of-state salesperson 1464
1760+complies with the laws of this state with respect to the transaction and: 1465
1761+(1) Works under the direct supervision of an out-of-state broker who 1466
1762+meets the requirements set forth in [subdivision (1)] subdivisions (1), (5) 1467
1763+and (6) of subsection [(b)] (a) of this section; and 1468
1764+(2) Provides the licensed broker who is working in cooperation with 1469 Substitute Bill No. 6769
1765+
1766+
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1769+48 of 59
1770+
1771+the out-of-state broker a copy of the out-of-state salesperson's license or 1470
1772+other proof of licensure from the [jurisdictions] states where the out-of-1471
1773+state salesperson maintains a license as a real estate salesperson. 1472
1774+[(d)] (c) Any out-of-state broker or out-of-state salesperson licensed 1473
1775+in a state that has no distinction between a real estate broker license and 1474
1776+a real estate salesperson license shall be subject to the requirements of 1475
1777+subsection [(b)] (a) of this section with regard to any commercial real 1476
1778+estate transaction in this state. 1477
1779+[(e)] (d) Each out-of-state broker or out-of-state salesperson that 1478
1780+advertises for sale commercial real estate pursuant to this section shall 1479
1781+include in any advertising material the name of the licensed broker with 1480
1782+whom the out-of-state broker has a written agreement pursuant to 1481
1783+subdivision (2) of subsection [(b)] (a) of this section. Nothing in this 1482
1784+section shall permit an out-of-state broker or out-of-state salesperson to 1483
1785+accompany a prospective buyer at the site of commercial real estate 1484
1786+pursuant to a real estate transaction in this state. 1485
1787+(e) An out-of-state real estate licensee, other than an out-of-state 1486
1788+leasing agent, may receive compensation for referring to a real estate 1487
1789+licensee in this state a prospective party to a real estate transaction in 1488
1790+this state. 1489
1791+Sec. 33. Section 20-325m of the general statutes is repealed and the 1490
1792+following is substituted in lieu thereof (Effective April 1, 2024): 1491
1793+(a) Any real estate broker licensed under the provisions of this 1492
1794+chapter who engages in the real estate business [, as defined in section 1493
1795+20-311,] shall retain the following records for a period of not less than 1494
1796+seven years after any real estate transaction closes, all funds held in 1495
1797+escrow for such transaction are disbursed or the listing agreement or 1496
1798+buyer or tenant representation agreement expires, whichever occurs 1497
1799+later: (1) All purchase contracts, leases, options, written offers or 1498
1800+counteroffers drafted by such broker or on behalf of such broker; (2) the 1499
1801+listing agreement or buyer or tenant representation agreement, any 1500 Substitute Bill No. 6769
1802+
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1806+49 of 59
1807+
1808+extensions of or amendments to such agreements and any disclosures 1501
1809+or agreements required pursuant to sections 20-325a to 20-325l, 1502
1810+inclusive, as amended by this act; and (3) all canceled checks, unused 1503
1811+checks, checkbooks and bank statements for any escrow or trust account 1504
1812+maintained pursuant to section 20-324k. [Such] 1505
1813+(b) Each leasing agent licensed under the provisions of this chapter 1506
1814+shall retain copies of such leasing agent's employment agreement or 1507
1815+contract with a development owner for a period of not less than seven 1508
1816+years. 1509
1817+(c) All records [may] required under subsection (a) or (b) of this 1510
1818+section shall be retained in [any format, electronic or otherwise,] an 1511
1819+electronic format that is capable of producing an accurate copy of the 1512
1820+original documents unless it is commercially impractical for a real estate 1513
1821+broker or leasing agent to retain such records in such format. If it is 1514
1822+commercially impractical for a real estate broker or leasing agent to 1515
1823+retain such records in an electronic format, the real estate broker or 1516
1824+leasing agent shall retain such records in a paper format that is capable 1517
1825+of producing an accurate copy [in paper format] of the original 1518
1826+[document] documents. Each real estate broker or leasing agent shall 1519
1827+make such records available to the department upon any request made 1520
1828+by the department for such records. 1521
1829+Sec. 34. Section 20-327c of the general statutes is repealed and the 1522
1830+following is substituted in lieu thereof (Effective April 1, 2024): 1523
1831+(a) On or after January 1, 1996, every agreement to purchase 1524
1832+residential real estate, for which a written residential condition report 1525
1833+is, or written residential condition reports are, required pursuant to 1526
1834+section 20-327b, shall include a requirement that the seller credit the 1527
1835+purchaser with the sum of five hundred dollars at closing should the 1528
1836+seller fail to furnish the written residential condition report or reports as 1529
1837+required by sections 20-327b to 20-327e, inclusive. 1530
1838+(b) [(1)] No seller who credits a purchaser pursuant to subsection (a) 1531 Substitute Bill No. 6769
1839+
1840+
1841+LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06769-
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1843+50 of 59
1844+
1845+of this section shall, by reason of such credit, be excused from disclosing 1532
1846+to the purchaser any defect in the residential real estate if such defect: 1533
1847+[(A)] (1) Is subject to disclosure pursuant to section 20-327b; 1534
1848+[(B)] (2) Is within the seller's actual knowledge of such residential real 1535
1849+estate; and 1536
1850+[(C)] (3) Significantly impairs [(i)] (A) the value of such residential 1537
1851+real estate, [(ii)] (B) the health or safety of future occupants of such 1538
1852+residential real estate, or [(iii)] (C) the useful life of such residential real 1539
1853+estate. 1540
1854+[(2)] (c) A purchaser may, without limiting any other remedies 1541
1855+available to the purchaser, bring a civil action in the judicial district in 1542
1856+which the residential real estate is located to recover actual damages 1543
1857+from a seller who fails to disclose to such purchaser any defect described 1544
1858+in [subdivision (1) of this subsection to such purchaser] subsection (b) 1545
1859+of this section. 1546
1860+Sec. 35. Subsections (a) and (b) of section 20-327f of the general 1547
1861+statutes are repealed and the following is substituted in lieu thereof 1548
1862+(Effective April 1, 2024): 1549
1863+(a) With respect to a contract for the sale of [a one-to-four family] 1550
1864+residential real property, if the seller provides written notice to the 1551
1865+purchaser, prior to, or upon, entering into the contract, of the availability 1552
1866+of the lists of hazardous waste facilities pursuant to section 22a-134f, the 1553
1867+seller and any real estate licensee shall be deemed to have fully satisfied 1554
1868+any duty to disclose the presence of all hazardous waste facilities, as 1555
1869+defined in section 22a-134f even if: (1) The list required to be submitted 1556
1870+pursuant to section 22a-134f has not been submitted, (2) the list has not 1557
1871+been received or made available as required in section 22a-134f, or (3) 1558
1872+there is an error, omission or inaccuracy in the list. 1559
1873+(b) With respect to a contract for the sale of [a one-to-four family] 1560
1874+residential real property, if the seller provides written notice to the 1561 Substitute Bill No. 6769
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1876+
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1879+51 of 59
1880+
1881+purchaser, prior to, or upon, entering into the contract, of the availability 1562
1882+of information concerning environmental matters from the United 1563
1883+States Environmental Protection Agency, the National Response Center, 1564
1884+the United States Department of Defense and third-party providers, the 1565
1885+seller and any real estate licensee shall be deemed to have fully satisfied 1566
1886+any duty to disclose environmental matters concerning properties other 1567
1887+than the property that is the subject of the contract. 1568
1888+Sec. 36. Subsection (a) of section 20-327g of the general statutes is 1569
1889+repealed and the following is substituted in lieu thereof (Effective April 1570
1890+1, 2024): 1571
1891+(a) With respect to a contract for the sale of [a one-to-four family] 1572
1892+residential real property, if the seller provides written notice to the 1573
1893+purchaser, prior to, or upon, entering into the contract, that a list of local 1574
1894+properties upon which hunting or shooting sports regularly take place 1575
1895+may be available at the office of the town clerk, the seller and any real 1576
1896+estate licensee shall be deemed to have fully satisfied any duty to 1577
1897+disclose the presence of local properties upon which hunting or 1578
1898+shooting sports regularly take place, even if (1) the list is not available 1579
1899+at the office of the town clerk, or (2) there is an error, omission or 1580
1900+inaccuracy in the list. 1581
1901+Sec. 37. Subsection (b) of section 20-327h of the general statutes is 1582
1902+repealed and the following is substituted in lieu thereof (Effective April 1583
1903+1, 2024): 1584
1904+(b) Commencing sixty days after the date on which the Commission 1585
1905+on Human Rights and Opportunities makes a disclosure form available 1586
1906+pursuant to subsection (a) of this section, each person who offers a 1587
1907+residential real property [containing two or more units] in the state for 1588
1908+sale, exchange or for lease with option to buy shall attach a photocopy, 1589
1909+duplicate original, facsimile transmission or other exact reproduction or 1590
1910+duplicate of such disclosure form, signed by the prospective purchaser, 1591
1911+to any purchase agreement, option or lease containing a purchase 1592
1912+option, at the time of closing. 1593 Substitute Bill No. 6769
1913+
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1917+52 of 59
1918+
1919+Sec. 38. Section 20-328 of the general statutes is repealed and the 1594
1920+following is substituted in lieu thereof (Effective April 1, 2024): 1595
1921+The Commissioner of Consumer Protection, with advice and 1596
1922+assistance from the commission, may adopt regulations, in accordance 1597
1923+with chapter 54, relating to the form and manner of filing applications 1598
1924+for licenses under this chapter and the manner in which [licensed real 1599
1925+estate brokers and licensed real estate salespersons] real estate licensees 1600
1926+shall conduct the real estate business. 1601
1927+Sec. 39. Section 20-329 of the general statutes is repealed and the 1602
1928+following is substituted in lieu thereof (Effective April 1, 2024): 1603
1929+The provisions of this chapter concerning the licensure of real estate 1604
1930+[brokers and real estate salespersons] licensees shall not apply to: (1) 1605
1931+Any person who as owner or lessor performs any of the acts enumerated 1606
1932+in section 20-311, as amended by this act, with reference to property 1607
1933+owned, leased or sought to be acquired or leased by the person, or to the 1608
1934+person's regular employees who live at such property and are employed 1609
1935+as on-site residential superintendents, janitors or custodians, with 1610
1936+respect to the property so owned or leased or sought to be acquired or 1611
1937+leased when such acts are performed in the regular course of, or incident 1612
1938+to, the management of such property and the investment therein; (2) any 1613
1939+person acting as attorney-in-fact under a duly executed power of 1614
1940+attorney from the owner authorizing the final consummation by 1615
1941+performance of any contract for the sale, leasing or exchange of real 1616
1942+estate, or to service rendered by any attorney-at-law in the performance 1617
1943+of the attorney-at-law's duties as such attorney-at-law; (3) a receiver, 1618
1944+trustee in bankruptcy, administrator, executor or other fiduciary, while 1619
1945+acting as such, or any person selling real estate under order of any court, 1620
1946+or to a trustee acting under a trust agreement, deed of trust or will, or 1621
1947+the regular salaried employees thereof; (4) witnesses in court as to the 1622
1948+values of real estate; (5) persons in the employ of the federal or state 1623
1949+government or any political subdivision thereof while acting in the 1624
1950+course of such employment; (6) any employee of any nonprofit housing 1625
1951+corporation that (A) has been certified as a tax-exempt organization 1626 Substitute Bill No. 6769
1952+
1953+
1954+LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06769-
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1956+53 of 59
1957+
1958+under Section 501(c)(3) of the Internal Revenue Code of 1986, or any 1627
1959+subsequent corresponding internal revenue code of the United States, 1628
1960+as from time to time amended, and manages a housing project, or (B) 1629
1961+manages a housing project assisted in whole or in part by the federal 1630
1962+government pursuant to Section 8 of The United States Housing Act of 1631
1963+1937, as amended from time to time, while such employee is performing 1632
1964+duties in the regular course of, or incidental to, the management of such 1633
1965+housing project; (7) any person licensed to maintain or operate a mobile 1634
1966+manufactured home park under chapter 412 who performs any of the 1635
1967+acts enumerated in section 20-311, as amended by this act, with 1636
1968+reference to lots or mobile manufactured homes within the park or to 1637
1969+the person's employees with respect to lots or mobile manufactured 1638
1970+homes within such park when such acts are performed in the regular 1639
1971+course of, or incidental to, the management of such property and the 1640
1972+investment therein; (8) persons licensed as sellers of mobile 1641
1973+manufactured homes under section 21-67; [or] (9) any person or such 1642
1974+person's regular employee who, as owner, lessor, licensor, manager, 1643
1975+representative or agent manages, leases, or licenses space on or in a 1644
1976+tower, building or other structure for (A) "personal wireless services 1645
1977+facilities" or facilities for "private mobile service" as those terms are 1646
1978+defined in 47 USC 332, which facilities shall be unattended, and the 1647
1979+installation and maintenance of related devices authorized by the 1648
1980+Federal Communications Commission, and ancillary equipment used to 1649
1981+operate such devices and equipment shelters therefor, in an area not to 1650
1982+exceed three hundred sixty square feet for any one service established 1651
1983+by the Federal Communications Commission in 47 CFR, as amended 1652
1984+from time to time, by a provider of any such service, and (B) any right 1653
1985+appropriate to access such facilities and connect or use utilities in 1654
1986+connection with such facilities; and (10) any person who is employed by 1655
1987+a broker to perform clerical services, which person shall not negotiate 1656
1988+the terms of an agreement, list a property unless on behalf of a real estate 1657
1989+licensee, open or be listed as a signatory on a broker's escrow or trust 1658
1990+account or sell, buy or lease real property for another person for 1659
1991+compensation. 1660 Substitute Bill No. 6769
1992+
1993+
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1996+54 of 59
1997+
1998+Sec. 40. Section 20-329a of the general statutes is repealed and the 1661
1999+following is substituted in lieu thereof (Effective April 1, 2024): 1662
2000+As used in this section and sections [20-329a] 20-329b to 20-329n, 1663
2001+inclusive, as amended by this act: 1664
2002+(1) "Disposition" or "dispose of" means any sale, exchange, lease, 1665
2003+assignment, award by lottery or other transaction designed to convey 1666
2004+an interest in a subdivision or parcel, lot, or unit in a subdivision when 1667
2005+undertaken for gain or profit; 1668
2006+(2) "Offer" means every inducement, solicitation or attempt to bring 1669
2007+about a disposition; 1670
2008+(3) "Person" means an individual, firm, company, association, 1671
2009+corporation, limited liability company, government or governmental 1672
2010+subdivision or agency, business trust, estate, trust, partnership, 1673
2011+unincorporated association or organization, two or more of any of the 1674
2012+foregoing having a joint or common interest, or any other legal or 1675
2013+commercial entity; 1676
2014+(4) "Broker" means a resident real estate broker duly licensed under 1677
2015+this chapter; 1678
2016+(5) "Salesperson" means any person duly licensed as a real estate 1679
2017+salesperson under this chapter; 1680
2018+(6) "Purchaser" means a person who acquires an interest in any lot, 1681
2019+parcel or unit in a subdivision; and 1682
2020+(7) "Subdivision" means any improved or unimproved land or tract 1683
2021+of land located outside this state which is divided or proposed to be 1684
2022+divided into five or more lots, parcels, units, or interests for the purpose 1685
2023+of disposition, at any time as part of a common promotional plan. Any 1686
2024+land which is under common ownership or which is controlled by a 1687
2025+single developer or a group of developers acting in concert, is 1688
2026+contiguous in area, and is designated or advertised as a common unit or 1689 Substitute Bill No. 6769
2027+
2028+
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2031+55 of 59
2032+
2033+known by a common name, shall be presumed, without regard to the 1690
2034+number of lots, parcels, units or interests covered by each individual 1691
2035+offering, to be part of a common promotional plan. [; and] 1692
2036+[(8) "Advertising" means publishing or causing to be published: (A) 1693
2037+By means of any newspaper or periodical; (B) by means of any radio or 1694
2038+television broadcast; (C) by means of any written or printed or 1695
2039+photographic matter produced by any duplicating process producing 1696
2040+ten copies or more, any information offering for sale or for the purpose 1697
2041+of causing or inducing any other person to purchase or to acquire an 1698
2042+interest in the title to subdivided lands, including the land sales contract 1699
2043+to be used and any photographs or drawings or artist's representations 1700
2044+of physical conditions or facilities on the property existing or to exist; or 1701
2045+(D) by means of any material used in connection with the disposition or 1702
2046+offer of subdivided lands by radio, television, telephone or any other 1703
2047+electronic means. "Advertising" does not include: Stockholder 1704
2048+communications such as annual reports and interim financial reports, 1705
2049+proxy materials, registration statements, securities prospectuses, 1706
2050+applications for listing securities on stock exchanges, and the like; 1707
2051+prospectuses, property reports, offering statements or other documents 1708
2052+required to be delivered to prospective purchasers by an agency of any 1709
2053+other state or the federal government; all communications addressed to 1710
2054+and relating to the account of any persons who have previously 1711
2055+executed a contract for the purchase of the subdivider's lands except 1712
2056+where directed to the sale of additional lands; or press releases or other 1713
2057+communications delivered to newspapers or other periodicals for 1714
2058+general information or public relations purposes, provided no charge is 1715
2059+made by such newspapers or other periodicals for the publication or use 1716
2060+of any part of such communications.] 1717
2061+Sec. 41. Section 20-329n of the general statutes is repealed and the 1718
2062+following is substituted in lieu thereof (Effective April 1, 2024): 1719
2063+All moneys paid or advanced by a purchaser or lessee or prospective 1720
2064+purchaser or prospective lessee for any lot, parcel, unit or interest in any 1721
2065+subdivision, the disposition of which is controlled by sections 20-329a, 1722 Substitute Bill No. 6769
2066+
2067+
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2070+56 of 59
2071+
2072+as amended by this act, 20-329b, 20-329d, 20-329e, 20-329f [,] and 20-1723
2073+329h, [and 20-329i,] or such portion of such moneys as the commission 1724
2074+may determine is sufficient for the protection of the interests of such 1725
2075+purchaser or lessee shall be deposited by the seller or lessor in an escrow 1726
2076+account, approved by the commission, in a bank doing business in this 1727
2077+state. Such money shall remain in such escrow account until (1) a proper 1728
2078+and valid release is obtained for such money, (2) the owner or 1729
2079+subdivider or the purchaser or lessee has defaulted under their contract 1730
2080+for sale or lease and the commission or a court has made a determination 1731
2081+as to the disposition of such money, or (3) the owner or subdivider or 1732
2082+the seller or lessor orders the return of such money to such purchaser or 1733
2083+lessee. 1734
2084+Sec. 42. Subsection (c) of section 47-90a of the general statutes is 1735
2085+repealed and the following is substituted in lieu thereof (Effective April 1736
2086+1, 2024): 1737
2087+(c) Every person who directly or indirectly controls a declarant liable 1738
2088+under subsection (a) of this section, every general partner, officer or 1739
2089+director of a declarant and every person occupying a similar status or 1740
2090+performing a similar function, every employee of the declarant who 1741
2091+materially aids in the disposition, and every agent who materially aids 1742
2092+in the disposition is also liable jointly and severally with and to the same 1743
2093+extent as the declarant, provided the plaintiff sustains the burden of 1744
2094+proof that such person knew or, in the exercise of reasonable care 1745
2095+expected by such persons in the reasonable exercise of their duties, 1746
2096+should have known of the existence of the facts by reason of which the 1747
2097+liability is alleged to exist. There is a right to contribution in cases of 1748
2098+contract among persons so liable. No person shall be liable under this 1749
2099+section whose relationship to the declarant or other person consists 1750
2100+solely of rendering professional and other customary services, 1751
2101+including, but not limited to: (1) An attorney-at-law, architect, land 1752
2102+surveyor or engineer; (2) a lending institution which is not a declarant 1753
2103+whose relationship to the declarant consists solely of rendering 1754
2104+customary banking services and holding a mortgage on all or a portion 1755 Substitute Bill No. 6769
2105+
2106+
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2109+57 of 59
2110+
2111+of the condominium which mortgage, or agreements or instruments 1756
2112+relating thereto, may contain mutual covenants and agreements 1757
2113+concerning the approval of the condominium instruments and 1758
2114+amendments thereto, and regulates the activity of the declarant under 1759
2115+the condominium instruments or an officer, director or employee of 1760
2116+such lending institution; (3) a real estate broker or salesman whose 1761
2117+relationship to the declarant consists solely of [rendering services 1762
2118+described in subdivision (6) of] engaging in the real estate business, as 1763
2119+defined in section 20-311, as amended by this act, and other customary 1764
2120+services; or (4) a person whose sole involvement in the disposition of a 1765
2121+condominium unit occurs subsequent to the date of the act or omission 1766
2122+out of which any liability under subsection (a) of this section arises. 1767
2123+Sec. 43. Subsection (a) of section 47-42f of the general statutes is 1768
2124+repealed and the following is substituted in lieu thereof (Effective April 1769
2125+1, 2024): 1770
2126+(a) As used in this section: (1) "Residential real property" has the same 1771
2127+meaning as provided in section [20-325c] 20-311, as amended by this act, 1772
2128+but does not include property owned by the state or any political 1773
2129+subdivision thereof; (2) "benefited property" or "property that benefits" 1774
2130+includes residential real property burdened by an easement or right-of-1775
2131+way, the owner of which residential real property uses such easement 1776
2132+or right-of-way; and (3) "easement" or "right-of-way" means a private 1777
2133+appurtenant easement or right-of-way. 1778
2134+Sec. 44. Sections 20-329i and 20-324j of the general statutes are 1779
2135+repealed. (Effective April 1, 2024) 1780
2136+This act shall take effect as follows and shall amend the following
2137+sections:
2138+
2139+Section 1 April 1, 2024 20-311
2140+Sec. 2 April 1, 2024 New section
2141+Sec. 3 April 1, 2024 New section
2142+Sec. 4 April 1, 2024 New section
2143+Sec. 5 April 1, 2024 New section Substitute Bill No. 6769
2144+
2145+
2146+LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06769-
2147+R02-HB.docx }
2148+58 of 59
2149+
2150+Sec. 6 April 1, 2024 New section
2151+Sec. 7 April 1, 2024 New section
2152+Sec. 8 April 1, 2024 20-311b
2153+Sec. 9 April 1, 2024 20-312
2154+Sec. 10 April 1, 2024 20-312b
2155+Sec. 11 April 1, 2024 20-314
2156+Sec. 12 April 1, 2024 20-314a
2157+Sec. 13 April 1, 2024 20-316(b) and (c)
2158+Sec. 14 April 1, 2024 20-317
2159+Sec. 15 April 1, 2024 20-319
2160+Sec. 16 April 1, 2024 20-319a
2161+Sec. 17 April 1, 2024 20-320
2162+Sec. 18 April 1, 2024 20-320a
2163+Sec. 19 April 1, 2024 20-320b(a)
2164+Sec. 20 April 1, 2024 20-323
2165+Sec. 21 April 1, 2024 20-324a
2166+Sec. 22 April 1, 2024 20-324b
2167+Sec. 23 April 1, 2024 20-324d
2168+Sec. 24 April 1, 2024 20-324e(a) to (f)
2169+Sec. 25 April 1, 2024 20-324i
2170+Sec. 26 April 1, 2024 20-325
2171+Sec. 27 April 1, 2024 20-325a(a)
2172+Sec. 28 April 1, 2024 20-325c
2173+Sec. 29 April 1, 2024 20-325d
2174+Sec. 30 April 1, 2024 20-325f
2175+Sec. 31 April 1, 2024 20-325h
2176+Sec. 32 April 1, 2024 20-325l
2177+Sec. 33 April 1, 2024 20-325m
2178+Sec. 34 April 1, 2024 20-327c
2179+Sec. 35 April 1, 2024 20-327f(a) and (b)
2180+Sec. 36 April 1, 2024 20-327g(a)
2181+Sec. 37 April 1, 2024 20-327h(b)
2182+Sec. 38 April 1, 2024 20-328
2183+Sec. 39 April 1, 2024 20-329
2184+Sec. 40 April 1, 2024 20-329a
2185+Sec. 41 April 1, 2024 20-329n
2186+Sec. 42 April 1, 2024 47-90a(c)
2187+Sec. 43 April 1, 2024 47-42f(a)
2188+Sec. 44 April 1, 2024 Repealer section
2189+ Substitute Bill No. 6769
2190+
2191+
2192+LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06769-
2193+R02-HB.docx }
2194+59 of 59
2195+
2196+
2197+GL Joint Favorable Subst.
2198+INS Joint Favorable
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