Substitute House Bill No. 6769
Public Act No. 23-84
AN ACT CONCERNING THE DEPARTMENT OF CONSUMER
PROTECTION'S RECOMMENDATIONS REGARDING REAL
ESTATE LICENSING AND ENFORCEMENT.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Section 20-311 of the general statutes is repealed and the
following is substituted in lieu thereof (Effective April 1, 2024):
As used in this chapter and sections 2 to 7, inclusive, of this act, unless
the context otherwise requires:
(1) "Advertising" (A) means disseminating, publishing or causing to
be posted by way of any (i) print media, including, but not limited to,
outdoor signage and periodicals, (ii) audio or video broadcast,
streaming or other electronic dissemination, or (iii) written or
photographic material disseminated or posted via online, telephonic
notification, electronic mail or other electronic means, and (B) does not
include any (i) stockholder communication, including, but not limited
to, any annual report, interim financial report, proxy material,
registration statement, securities prospectus or application for listing a
security on a stock exchange, (ii) prospectus, property report, offering
statement or other document that any federal agency or agency of
another state requires be delivered to a prospective purchaser, (iii) Substitute House Bill No. 6769
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communication addressed to, and relating to the account of, a person
who has executed a contract for the purchase of a subdivider's lands,
except if such communication concerns the sale of additional lands, or
(iv) press release or other communication delivered to a media outlet for
general information or public relations purposes, provided no charge is
imposed by such media outlet for publication or use of any part of such
communication;
(2) "Affiliated" means having a working relationship with a real estate
licensee by way of an (A) employer-employee relationship, or (B)
independent contractor relationship;
(3) "Associate broker" means a real estate broker who (A) is affiliated
with a supervising licensee as an independent contractor or employed
by a supervising licensee, and (B) has the authority to engage in the real
estate business on behalf of such supervising licensee;
(4) "Business entity" means any association, corporation, limited
liability company, limited liability partnership or partnership;
[(1)] (5) "Commercial real estate transaction" means any transaction
involving the sale, exchange, lease or sublease of real property other
than (A) real property containing any building or structure occupied, or
intended to be occupied, by not more than four families, or (B) a single
building lot to be used for family or household purposes;
[(2)] (6) "Commission" means the Connecticut Real Estate
Commission appointed under the provisions of section 20-311a;
(7) "Confidential information" means any fact concerning a person's
assets, expenses, income, liabilities, motivations to purchase, rent or sell
real property and previous offers received or made to purchase or lease
real property which (A) a client has not authorized for release, or (B) is
not (i) a matter of general knowledge, (ii) part of a public record or file
to which access is authorized pursuant to section 1-210, or (iii) otherwise Substitute House Bill No. 6769
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subject to disclosure under any other provision of the general statutes
or regulations of Connecticut state agencies;
(8) "Custodial broker" means any individual who is (A) licensed as a
real estate broker, and (B) temporarily appointed solely to (i) conclude
the real estate business matters of another broker who is deceased or
incapacitated, (ii) transition such matters to a real estate broker who is
alive and not incapacitated, or (iii) assist in transitioning the deceased
or incapacitated broker's ownership interest in a business entity that is
engaged in the real estate business for the purpose of satisfying the
requirements established in section 20-312, as amended by this act;
(9) "Department" means the Department of Consumer Protection;
[(3)] (10) "Designated agency" means the appointment by a real estate
broker of one or more brokers or salespersons affiliated with or
employed by the real estate broker to solely represent a buyer or tenant
as a designated buyer's agent and appoint another to represent a seller
or landlord as a designated seller's agent in a transaction;
(11) "Designated broker" means the individual real estate broker
whom a real estate broker business entity names as the individual
broker responsible for the supervision and overall operation of such
business entity's engagement in the real estate business in this state;
[(4)] (12) "Designated buyer agent" means a [broker or salesperson]
real estate licensee who is designated by the real estate broker by whom
such real estate licensee is employed, or with whom [the broker or
salesperson] such real estate licensee is affiliated, [or employed to]
solely to represent a named buyer or tenant client of the real estate
broker during the term of a buyer representation agreement or
authorization;
[(5)] (13) "Designated seller agent" means a [broker or salesperson]
real estate licensee who is designated by the real estate broker by whom Substitute House Bill No. 6769
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such real estate licensee is employed, or with whom [the broker or
salesperson] such real estate licensee is affiliated, [or employed to]
solely to represent a named seller or landlord client of the real estate
broker during the term of a listing agreement or authorization;
(14) "Development owner" means (A) the owner of record of a
multiunit development that is offered for lease, or (B) the parent
company of such owner of record if such parent company holds a one
hundred per cent ownership interest in such owner of record;
[(6) "Engaging in the real estate business"] (15) "Engage in the real
estate business" means to, while acting for another and for a fee,
commission or other valuable consideration, [in the listing for sale,
selling, exchanging, buying or renting, or offering or attempting to
negotiate a sale, exchange, purchase or rental of] negotiate for or offer,
or attempt to list for sale, sell, exchange, buy or rent, an estate or interest
in real estate or [a resale of] to resell a mobile manufactured home, as
defined in [subdivision (1) of section 21-64, or collecting upon a loan
secured or to be secured by a mortgage or other encumbrance upon or
transfer of real estate] section 21-64;
(16) "Incapacity" means any physical or mental incapacity which
prevents an individual from substantially satisfying such individual's
duties and responsibilities as a real estate licensee;
(17) "Influence residential real estate appraisals" includes, but is not
limited to, refusing or intentional failing to refer a homebuyer, or
encouraging other real estate licensees not to refer a homebuyer, to a
mortgage broker or lender, as such terms are defined in section 36a-760,
based solely on the fact that the mortgage broker or lender uses an
appraiser who has provided an appraisal reflecting a fair market value
estimate that was less than the sale contract price;
(18) "Leasing agent" means any individual, other than a real estate Substitute House Bill No. 6769
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licensee, who (A) acts as an agent for a principal for a commission, fee
or other valuable consideration, and (B) engages in leasing or renting
activity, including, but not limited to, (i) collecting security deposits, (ii)
offering or attempting to negotiate a rental, or (iii) collecting, offering or
attempting to collect rent for the use of real estate;
(19) "Multiunit development" means any residential complex with at
least fifty units that are leased or available to be leased;
(20) "Negotiate" means acting, directly or indirectly, as an
intermediary by facilitating, or participating in, communications
between parties related to the parties' interests in a real estate or mobile
manufactured home transaction;
(21) "Nonmaterial fact concerning real property" means any fact, set
of facts or circumstances surrounding real property which includes, but
is not limited to, the fact that (A) an occupant of real property is or has
been infected with a disease on the list of reportable diseases, emergency
illnesses and health conditions issued by the Commissioner of Public
Health pursuant to section 19a-2a, or (B) the real property was at any
time suspected to have been the site of a death or felony;
[(7)] (22) "Person" means any individual [, partnership, association,
limited liability company or corporation] or business entity;
(23) "Promotional note" (A) means any promissory note that (i) is
secured by a trust deed executed (I) on unimproved real property, (II)
after construction of an improvement of real property but before the first
sale of such property so improved, or (III) as a means of financing the
first purchase of such property so improved, and (ii) is subordinate, or
which by its terms may become subordinate, to any other trust deed on
such property, and (B) does not include any note which was executed
more than three years prior to being offered for sale or was secured by
a first trust deed on real property in a subdivision, which evidences a Substitute House Bill No. 6769
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bona fide loan made in connection with the financing of the usual costs
of the development of one or more residential, commercial or industrial
buildings on the property under a written agreement providing (i) for
either the disbursement of the loan funds as costs are incurred or in
relation to the progress of the work, and (ii) for title insurance insuring
the priority of the security as against mechanic's liens or for the final
disbursement of at least ten per cent of the loan funds after the
expiration of the period for the filing of mechanic's liens;
(24) "Prospective party" means any person that communicates with a
real estate licensee in contemplation of potential representation by the
real estate licensee in a real estate transaction;
[(8)] (25) "Real estate broker" or "broker" means (A) any person [,
partnership, association, limited liability company or corporation which
acts for another person or entity and for a fee, commission or other
valuable consideration, lists for sale, sells, exchanges, buys or rents, or
offers or attempts to negotiate a sale, exchange, purchase or rental of, an
estate or interest in real estate, or a resale of a mobile manufactured
home, as defined in subdivision (1) of section 21-64, or collects or offers
or attempts to collect rent for the use of real estate] engaged in the real
estate business, and (B) any person [, partnership, association, limited
liability company or corporation] employed by or on behalf of the owner
or owners of lots or other parcels of real estate, at a stated salary, upon
commission, upon a salary and commission basis or otherwise to sell
such real estate, or any parts thereof, in lots or other parcels, and who
sells or exchanges, or offers, attempts or agrees to negotiate the sale or
exchange of, any such lot or parcel of real estate;
(26) "Real estate licensee" means any real estate broker or real estate
salesperson licensed pursuant to this chapter;
[(9)] (27) "Real estate salesperson" or "salesperson" means [a person]
any individual who is affiliated with [any real estate broker as an Substitute House Bill No. 6769
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independent contractor or employed by a real estate broker to list for
sale, sell or offer for sale, to buy or offer to buy or to negotiate the
purchase or sale or exchange of real estate, or to offer for resale, a mobile
manufactured home, as defined in subdivision (1) of section 21-64, or to
lease or rent or offer to lease, rent or place for rent any real estate, or to
collect or offer or attempt to collect rent for the use of real estate] a
supervising licensee to (A) engage in the real estate business for or on
behalf of such [real estate broker, or who offers, sells or attempts to sell
the real estate or mobile manufactured homes of a licensed broker]
supervising licensee, or (B) if such individual is acting for another
person as a designated seller agent or designated buyer agent, [lists for
sale, sells, exchanges, buys or rents, or offers or attempts to negotiate a
sale, exchange, purchase or rental of, an estate or interest in real estate,
or a resale of a mobile manufactured home, as defined in subsection (a)
of section 21-64, or collects or offers or attempts to collect rent for the
use of real estate, but does not include employees of any real estate
broker whose principal occupation is clerical work in an office, or
janitors or custodians engaged principally in that occupation] engage in
the real estate business;
(28) "Real estate transaction" means any transaction in which (A) real
property is legally transferred to another person, or (B) a lease
agreement is executed between a landlord and a tenant;
(29) "Residential real property" means any one to four-family
residential real estate located in this state, including, but not limited to,
(A) a cooperative or condominium where the total number of units in
such cooperative or condominium does not exceed four units, and (B)
any individual unit within a multiunit development;
(30) "School" means any person that offers prelicensing or continuing
education courses approved pursuant to this chapter and sections 3 and
4 of this act; Substitute House Bill No. 6769
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(31) "Supervising licensee" means the real estate broker that is
responsible for controlling and supervising another real estate licensee
or a team;
[(10)] (32) "Team" means [a group] any combination of at least two
licensed real estate brokers, designated brokers or real estate
salespersons who are affiliated with the same [sponsoring real estate
broker] supervising licensee and engage in advertising as a group using
a team name; and
[(11)] (33) "Team name" means the name used to refer to a team in
team advertisements.
Sec. 2. (NEW) (Effective April 1, 2024) (a) No associate broker shall
engage in the real estate business unless the supervising licensee that is
responsible for controlling and supervising the associate broker (1)
knows that such associate broker is engaging in the real estate business,
and (2) has consented to such associate broker engaging in the real estate
business.
(b) Each supervising licensee shall be responsible for the actions of
the associate brokers who are under such supervising licensee's control
and supervision to the same extent that such supervising licensee would
be responsible for such associate brokers if such associate brokers were
real estate salespersons affiliated with such supervising licensee.
(c) If an associate broker's affiliation with a supervising licensee is
terminated, the associate broker shall notify the department of such
termination not later than fourteen calendar days after such termination
or such associate broker's affiliation with another supervising licensee,
whichever occurs first.
(d) Each associate broker shall comply with all advertising
requirements and standards that apply to real estate brokers, and shall
include the name of the supervising licensee who controls and Substitute House Bill No. 6769
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supervises such associate broker at a prominent location in all of such
associate broker's advertisements.
Sec. 3. (NEW) (Effective April 1, 2024) (a) (1) A school shall register
with the department, in a form and manner prescribed by the
Commissioner of Consumer Protection, prior to offering any
prelicensing or continuing education course. Such form shall include an
attestation by the school that:
(A) All courses offered by such school comply with the requirements
established in section 4 of this act; and
(B) All instructors teaching courses at such school are qualified
pursuant to subsection (c) of this section and section 4 of this act.
(2) No school shall offer any prelicensing or continuing education
course in this state unless such school maintains an active registration
with the department under this section.
(b) Each school registration issued pursuant to this section shall
expire biennially, and the initial registration fee and renewal fee for each
such school registration shall be one hundred dollars.
(c) No school shall permit an instructor to teach a course approved
under chapter 392 of the general statutes unless such school has
determined that the instructor has:
(1) At least five years of experience as a practicing real estate licensee;
(2) Expertise, or a professional designation from an institute or
society, in the field in which such instructor proposes to teach; or
(3) Experience teaching a course in a formal education program or
has attended an accredited college or university extension instructors'
seminar. For collegiate level courses that are part of a degree program,
the instructor shall have (A) teaching experience and a master's degree Substitute House Bill No. 6769
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in an appropriate field, or (B) such other combination of qualifications
as the commission may, in the commission's discretion, approve.
(d) No school shall offer any course that does not satisfy the
requirements established in section 4 of this act.
Sec. 4. (NEW) (Effective April 1, 2024) (a) Each school that is registered
with the department pursuant to section 3 of this act shall register with
the department, in a form and manner prescribed by the Commissioner
of Consumer Protection, each prelicensing or continuing education
course that such school intends to offer in this state. The fee to register
each course under this section shall be fifty dollars, and each course
registration application submitted to the department pursuant to this
section shall include:
(1) An outline of the course content detailing the total duration of
such course and the amount of time spent on each subject covered as
part of such course;
(2) The name of, and contact information for, each course instructor;
(3) A copy of the certificate issued to students upon completion of
such course;
(4) The cancellation and refund policy available to students for such
course;
(5) An attestation by the school that such course meets all the
requirements established in this section, section 20-314a of the general
statutes, as amended by this act, and all regulations adopted pursuant
to chapter 392 of the general statutes; and
(6) If such course is provided on an in-person basis, the location at
which such course is provided on an in-person basis.
(b) Notwithstanding subdivision (3) of subsection (a) of this section, Substitute House Bill No. 6769
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a school that offers more than one course may submit to the department
a template course completion certificate for the department's
consideration. If the department approves a template course completion
certificate, the school that submitted such certificate to the department
may use such template to issue all course completion certificates and not
be required to submit a copy of such certificates to the department
pursuant to subdivision (3) of subsection (a) of this section.
(c) No prelicensing or continuing education course shall qualify
towards the prelicensing or continuing education requirements
established for a real estate license under chapter 392 of the general
statutes unless such course has been approved by the department
pursuant to this section.
(d) The department shall not approve any prelicensing course under
this section unless such course is provided on an in-person basis or by
way of electronic means that incorporates a live online format.
(e) (1) Subject to the provisions of subdivision (2) of this subsection,
each school that offers a continuing education course under this section
shall ensure that no student may complete such course in less time than
the total course duration specified in the application that such school
filed with the department for such course pursuant to subsection (a) of
this section.
(2) If a school offers a course described in subdivision (1) of this
subsection by electronic means, the school may satisfy the requirements
established in subdivision (1) of this subsection by:
(A) Offering a live online course format using telecommunications
technology that allows for real-time audio communication between the
instructor and students; or
(B) Using technology that prohibits a student from completing the
course in less time than the total course duration specified in the Substitute House Bill No. 6769
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application that such school filed with the department for such course
pursuant to subsection (a) of this section.
(f) If a school offers any prelicensing or continuing education course
under this section by electronic means that do not allow for real-time
audio communication between the instructor and students, such school
shall include in such course periodic interactive assessments to confirm
each student's level of comprehension of, and engagement with, such
course.
(g) Each course registration issued pursuant to this section shall
expire five years after such registration is issued.
Sec. 5. (NEW) (Effective April 1, 2024) (a) If a real estate licensee
engages in the real estate business and a buyer or renter of real estate
uses an interpreter, other than the real estate licensee or an employee of
the real estate licensee, in conducting a real estate transaction or
negotiations, the real estate licensee shall provide to the buyer or renter
and interpreter, and obtain the buyer's or renter's and interpreter's
signatures on, forms containing the following language:
"I, (name of buyer or renter), used (name of interpreter) to act as my
interpreter during this real estate transaction or these negotiations. The
obligations of this contract or other written agreement were explained
to me in my native language by the interpreter. I understand the
contract or other written agreement.
(signature of buyer or renter)
(relationship of interpreter to buyer or renter)
I, (name of interpreter), acted as interpreter during this real estate
transaction or these negotiations. The obligations of the contract or other
written agreement were explained to (name of buyer or renter) in their
native language. I understand the contract or other written agreement. Substitute House Bill No. 6769
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(signature of interpreter)
(relationship of interpreter to buyer or renter)."
(b) Except as provided in subsection (c) of this section, if a real estate
licensee engages in the real estate business and acts as an interpreter for
a buyer or renter in conducting a transaction or negotiations, the real
estate licensee shall provide to the buyer or renter, and obtain the
buyer's or renter's signature on, a form containing the following
language written in the buyer's or renter's native language:
"This real estate transaction or these negotiations were conducted in
(buyer's or renter's native language), which is my native language. I
voluntarily choose to have the Real Estate (Broker/Salesperson) act as
my interpreter during the negotiations. The obligations of the contract
or other written agreement were explained to me in my native language.
I understand the contract or other written agreement."
(c) If a language that cannot be reduced to writing is used to conduct
a real estate transaction or negotiations, the form required under
subsection (b) of this section shall be in the English language.
Sec. 6. (NEW) (Effective April 1, 2024) (a) If a real estate broker dies or
is incapacitated, the executor of such broker's estate or any other person
who is legally authorized to act on behalf of such broker in a financial
transaction may apply to the department, in a form and manner
prescribed by the department, for the appointment of a custodial broker.
If the department approves an application for the appointment of a
custodial broker, the department shall appoint a custodial broker for the
deceased or incapacitated broker. Except as provided in subsection (b)
of this section, each custodial broker who is appointed pursuant to this
subsection shall serve for a term not to exceed one hundred eighty days.
(b) The department may, in the department's discretion, extend a
custodial broker's term beyond one hundred eighty days if the Substitute House Bill No. 6769
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department receives a hardship application that is submitted to the
department in a form and manner prescribed by the department.
(c) Each custodial broker shall act to preserve the financial interests
of the deceased or incapacitated real estate broker, or the estate of the
deceased real estate broker, for whom such custodial broker is
appointed.
(d) No real estate broker who is appointed as a custodial broker to
conclude the business of a deceased or incapacitated individual real
estate broker shall negotiate the purchase, sale or lease of any real estate
on behalf of such deceased or incapacitated broker unless:
(1) The prospective purchaser, seller, lessor or lessee of such real
estate entered into a preexisting buyer agreement, listing agreement or
leasing agreement with such deceased or incapacitated broker; and
(2) The prospective purchaser or lessor of such real estate has
executed a contract or paid a deposit to a seller or lessee to reserve a
right to purchase or lease such real estate from such seller or lessee.
(e) No business entity shall engage in the real estate business while
the designated broker for such business entity is deceased or
incapacitated unless a custodial broker has been appointed for such
business entity.
(f) If a custodial broker is appointed to serve as a designated broker
for a business entity, the business entity may engage in the real estate
business to the same extent that such business entity would engage in
such business if such designated broker was not a custodial broker.
(g) No real estate salesperson or team member shall engage in the real
estate business while the supervising licensee that is responsible for
controlling and supervising such salesperson or team is deceased or
incapacitated unless a custodial broker has been appointed for such Substitute House Bill No. 6769
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supervising licensee.
Sec. 7. (NEW) (Effective April 1, 2024) No leasing agent shall engage in
the real estate business except for leasing or renting real property that is
exclusively used for residential occupancy. Leasing agents shall not
engage in any activity that requires a real estate broker's or real estate
salesperson's license, including, but not limited to, selling, offering,
listing, negotiating, referring or showing for sale, entering into lease-to-
own agreements or leasing commercial real estate. A leasing agent shall
be employed by a development owner. A leasing agent shall not offer
leasing services for any person that is not a development owner. No
leasing agent shall engage in the real estate business concerning any
property other than on behalf of the owner of record of a multiunit
development that employs such leasing agent. A leasing agent shall
obtain a written contract from the development owner to demonstrate
such employment prior to engaging in any leasing activity at such
development. Such contract shall be made available to the department,
and produced by the leasing agent in an electronic form, upon a request
by the department for such contract.
Sec. 8. Section 20-311b of the general statutes is repealed and the
following is substituted in lieu thereof (Effective April 1, 2024):
(a) Within thirty days after the appointment of the members of the
commission, the commission shall meet in the city of Hartford for the
purpose of organizing by selecting such officers other than a
chairperson as the commission may deem necessary and appropriate. A
majority of the members of the commission shall constitute a quorum
for the exercise of the powers or authority conferred upon it.
(b) [(1)] The commission shall authorize the [Department of
Consumer Protection] department to issue licenses to real estate
[brokers and real estate salespersons] licensees. Substitute House Bill No. 6769
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[(2)] (c) The commission shall administer the provisions of this
chapter as to licensure and issuance, renewal, suspension or revocation
of licenses concerning the real estate business.
[(c)] (d) The commission shall be provided with the necessary office
space in Hartford by the Commissioner of Administrative Services. The
place of business of the commission and all files, records and property
of the commission shall at all times be and remain at such office, except
that inactive files shall be stored at a location designated by the
commission.
[(d)] (e) The commission shall hold meetings and hearings in
Hartford, in space provided by the Commissioner of Administrative
Services, or at such places outside of Hartford as shall be determined by
the chairman of the commission. The commission shall meet at least
once in each three-month period and may meet more often at the call of
its chairman. The chairman of the commission shall call a meeting of the
commission whenever requested to do so by a majority of the members
of the commission.
[(e)] (f) The commission shall vote on all matters requiring a decision
and votes shall be recorded in the commission's minutes.
Sec. 9. Section 20-312 of the general statutes is repealed and the
following is substituted in lieu thereof (Effective April 1, 2024):
(a) No person shall act as a real estate [broker or real estate
salesperson] licensee without a license issued by the commission or the
Commissioner of Consumer Protection, unless exempt under this
chapter. The [Commissioner of Consumer Protection] commissioner
may enter into any contract for the purpose of administratively
processing the renewal of licenses on behalf of the commission.
(b) The practice of engaging in the real estate business, or the offer to
[practice real estate brokerage] engage in the real estate business in this Substitute House Bill No. 6769
Public Act No. 23-84 17 of 60
state by [individual licensed real estate brokers or real estate
salespersons as a corporation, limited liability company, partnership or
limited liability partnership, a] real estate licensees, as a business entity
is permitted, provided:
(1) A material part of the business entity's business [of which]
includes engaging in the real estate [brokerage, is permitted, provided
(1) the] business;
(2) The business entity's personnel [of such corporation, limited
liability company, partnership or limited liability partnership] who
engage in the real estate [brokerage] business [as real estate brokers or
real estate salespersons, and the real estate brokers whose ownership,
control, membership or partnership interest is credited toward the
requirements of subdivision (3) of this subsection, are licensed or
exempt from licensure under this chapter, (2) the corporation, limited
liability company, partnership or limited liability partnership] are
licensed, or exempt from licensure, under this chapter;
(3) The business entity has been issued a real estate broker license [by
the commission as provided] as set forth in this section; [and]
(4) The business entity has paid the license or renewal fee required
for a real estate broker's license as set forth in section 20-314, as amended
by this act; [,and (3) except for] and
(5) The business entity is a publicly traded corporation or, if the
business entity is not a publicly traded corporation:
(A) [with respect to a corporation other than a nonstock corporation,]
The business entity is a stock corporation and one or more real estate
brokers, who are either licensed or exempt from licensure under this
chapter, own or control fifty-one per cent or more of the total issued
shares of the corporation; [,] Substitute House Bill No. 6769
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(B) [with respect to] The business entity is a nonstock corporation [,]
and one or more real estate brokers, who are licensed or exempt from
licensure under this chapter, constitute at least fifty-one per cent of the
members of the nonstock corporation; [,]
(C) [with respect to] The business entity is a limited liability company
[,] and one or more real estate brokers, who are licensed or exempt from
licensure under this chapter, own or control at least fifty-one per cent of
the interest in the limited liability company, as defined in section 34-
243a; [,] or
(D) [with respect to] The business entity is a partnership or limited
liability partnership [, one or more real estate brokers'] and the
partnership interest, as defined in section 34-301, of one or more real
estate brokers, who are licensed or exempt from licensure under this
chapter, constitutes at least fifty-one per cent of the total partnership
interest. [No such corporation, limited liability company, partnership or
limited liability partnership shall be relieved of responsibility for the
conduct or acts of its agents, employees or officers by reason of its
compliance with this section, nor shall any individual practicing real
estate brokerage be relieved of responsibility for real estate services
performed by reason of the individual's employment or relationship
with such corporation, limited liability company, partnership or limited
liability partnership. The Real Estate Commission may refuse to
authorize the issuance or renewal of a license if any facts exist that
would entitle the commission to suspend or revoke an existing license.]
(c) A [corporation, limited liability company, partnership or limited
liability partnership] business entity desiring a real estate broker license
shall file with the commission or the [commissioner] Commissioner of
Consumer Protection an application on such forms and in such manner
as prescribed by the [Department of Consumer Protection] department.
Each such [corporation, limited liability company, partnership or
limited liability partnership] business entity shall file with the Substitute House Bill No. 6769
Public Act No. 23-84 19 of 60
commission, [a designation of at least one individual licensed or
qualified to be licensed as a real estate broker in this state who shall be
in charge of the real estate brokerage business of such corporation,
limited liability company, partnership or limited liability partnership in
this state] in a form and manner prescribed by the department, the
identity of, and contact information for, at least one designated broker.
Such [corporation, limited liability company, partnership or limited
liability partnership] business entity shall notify the commission of any
change in [such designation] the identity of, or contact information for,
such designated broker not later than thirty days after such change
becomes effective.
(d) The Real Estate Commission may impose a fine of not more than
[one] five thousand dollars per violation on any [corporation, limited
liability company, partnership or limited liability partnership] person
that engages in the real estate business, including, but not limited to,
leasing or rental activity, without a license required by this section. Any
such imposition of a fine by the commission shall be a proposed final
decision and submitted to the [commissioner] Commissioner of
Consumer Protection in accordance with the provisions of subsection
(b) of section 21a-7.
(e) [(1) (A) Except as provided in subdivision (2) of this subsection,
each] Each team shall register, on a form and in a manner prescribed by
the [commissioner] Commissioner of Consumer Protection, with the
[Department of Consumer Protection] department. Each initial
registration shall be valid for a period of one year and be subject to
renewal for additional one-year periods. Each team shall pay to the
department an initial registration fee of five hundred sixty-five dollars
when the team files its initial registration, and a registration renewal fee
of three hundred seventy-five dollars when the team files each
registration renewal, pursuant to this subparagraph. Each team shall
include in each registration form that the team files with the department Substitute House Bill No. 6769
Public Act No. 23-84 20 of 60
pursuant to this [subparagraph] subsection:
[(i) The] (1) Such team's team name, which shall:
[(I)] (A) Include the full name of at least one licensed real estate
broker or real estate salesperson who is part of [the] such team or be
immediately followed by "at/of [full name of the [sponsoring real estate
broker] team's supervising licensee]";
[(II)] (B) Not include the name of any individual who is not a licensed
real estate broker or real estate salesperson; and
[(III)] (C) With the exception of "team", not include any abbreviation,
term or phrase, including, but not limited to, "associates", "company",
"corporation", "group", "LLC", "real estate" or "realty", that implies that
[the] such team is a business entity;
[(ii)] (2) The name of, and contact information for, [the] such team's
[sponsoring real estate broker] supervising licensee, who shall serve as
[the] such team's primary contact, ensure that [the] such team complies
with all applicable laws and regulations concerning team
advertisements and ensure that [the] such team timely files accurate
registration forms and registration updates with the department
pursuant to this [subdivision] subsection; and
[(iii)] (3) The name and contact information for each real estate broker
or real estate salesperson who is part of [the] such team.
[(B)] (f) A team shall send notice to the department disclosing any
change to the information contained in the team's registration form. The
team shall send such notice to the department, on a form and in a
manner prescribed by the [commissioner] Commissioner of Consumer
Protection, not later than twelve days after the date of such change. A
team may transfer the team's registration from one supervising licensee
to another supervising licensee, without applying for a new team Substitute House Bill No. 6769
Public Act No. 23-84 21 of 60
registration, if (1) all members of such team transfer to such other
supervising licensee, and (2) both supervising licensees agree to such
transfer.
[(C)] (g) Each team shall comply with all advertising requirements
and standards that apply to real estate brokers, and shall include the
name of [the] such team's [sponsoring real estate broker] supervising
licensee at a prominent location in all of [the] such team's
advertisements.
[(2) The commissioner may, in the commissioner's discretion, engage
the services of such third parties that the commissioner deems necessary
to assist the commissioner in implementing the provisions of
subdivision (1) of this subsection, provided no expenditure of state
funds shall be made to cover the cost of hiring a consultant to make
programmatic changes to the licensing system.]
Sec. 10. Section 20-312b of the general statutes is repealed and the
following is substituted in lieu thereof (Effective April 1, 2024):
A [licensed] real estate [broker or real estate salesperson] licensee
shall not be considered an employee under the provisions of section 31-
275 if substantially all of the remuneration for the services performed by
such [broker or salesperson] real estate licensee, whether paid in cash or
otherwise, is directly related to sales or other output rather than to the
number of hours worked, and such services are performed by the
[broker or salesperson] real estate licensee pursuant to a written contract
that contains the following provisions:
(1) The [broker or salesperson] real estate licensee, for purposes of
workers' compensation, is engaged as an independent contractor
associated with the person for whom services are performed;
(2) The [broker or salesperson] real estate licensee shall be paid a
commission based on [his] such real estate licensee's gross sales or Substitute House Bill No. 6769
Public Act No. 23-84 22 of 60
leases, if any, without deduction for taxes, which commission shall be
directly related to sales, leases or other output;
(3) The [broker or salesperson] real estate licensee shall not receive
any remuneration related to the number of hours worked and shall not
be treated as an employee with respect to such services for purposes of
workers' compensation;
(4) The [broker or salesperson] real estate licensee shall be permitted
to work any hours [he] such real estate licensee chooses;
(5) The [broker or salesperson] real estate licensee shall be permitted
to work out of [his] such real estate licensee's own home or the office of
the person for whom services are performed;
(6) The [broker or salesperson] real estate licensee shall be free to
engage in outside employment;
(7) The person for whom the services are performed may provide
office facilities and supplies for the use of the [broker or salesperson]
real estate licensee, but [the broker or salesperson] such real estate
licensee shall otherwise pay [his] such real estate licensee's own
expenses, including, but not limited to, automobile, travel and
entertainment expenses; and
(8) The contract may be terminated by either party to such contract at
any time upon notice given to the other party to such contract.
Sec. 11. Section 20-314 of the general statutes is repealed and the
following is substituted in lieu thereof (Effective April 1, 2024):
(a) Licenses shall be granted under this chapter only to persons who
bear a good reputation for honesty, truthfulness and fair dealing and
who are competent to transact the business of a real estate broker or real
estate salesperson in such manner as to safeguard the interests of the Substitute House Bill No. 6769
Public Act No. 23-84 23 of 60
public.
(b) Each application for a license or for a renewal thereof shall be
made in writing, on such forms and in such manner as is prescribed by
the [Department of Consumer Protection and accompanied by such
evidence in support of such application as is prescribed by the
commission. The commission may require such information with regard
to an applicant as the commission deems desirable, with due regard to
the paramount interests of the public, as to the honesty, truthfulness,
integrity and competency of the applicant and, where the applicant is a
corporation, association or partnership, as to the honesty, truthfulness,
integrity and competency of the officers of such corporation or the
members of such association or partnership] department.
(c) In order to determine the competency of any applicant for a real
estate [broker's license or a real estate salesperson's] licensee's license,
the commission or Commissioner of Consumer Protection shall, on
payment of an application fee of one hundred twenty dollars by an
applicant for a real estate broker's license or an application fee of eighty
dollars by an applicant for a real estate salesperson's license, subject
such applicant to personal written examination as to the applicant's
competency to act as a real estate broker or real estate salesperson, as
the case may be. [Such] Each examination shall be prepared by the
[Department of Consumer Protection] department or by a national
testing service designated by the [Commissioner of Consumer
Protection] commissioner and shall be administered to applicants by the
[Department of Consumer Protection] department or by such testing
service at such times and places as the commissioner may deem
necessary. The commission or [Commissioner of Consumer Protection]
commissioner may waive the uniform portion of the written
examination requirement in the case of an applicant who has taken the
national testing service examination in another state within two years
from the date of application and has received a score deemed Substitute House Bill No. 6769
Public Act No. 23-84 24 of 60
satisfactory by the commission or [Commissioner of Consumer
Protection] commissioner. The [Commissioner of Consumer Protection]
commissioner shall adopt regulations, in accordance with chapter 54,
establishing passing scores for examinations. In addition to such
application fee, applicants taking the examination administered by a
national testing service shall be required to pay directly to such testing
service an examination fee covering the cost of such examination. Each
payment of such application fee shall entitle the applicant to take such
examination within the one-year period from the date of payment.
[(d) (1) (A) Each applicant applying for a real estate broker's license
on or after July 1, 2016, but before January 1, 2022, shall, before being
admitted to such examination, prove to the satisfaction of the
commission or the Commissioner of Consumer Protection that the
applicant (i) (I) has been actively engaged for at least two years as a
licensed real estate salesperson under the supervision of a licensed real
estate broker in this state, (II) has successfully completed a course
approved by the commission or commissioner in real estate principles
and practices of at least sixty classroom hours of study, (III) has
successfully completed a course approved by the commission or
commissioner in real estate legal compliance consisting of at least fifteen
classroom hours of study, (IV) has successfully completed a course
approved by the commission or commissioner in real estate brokerage
principles and practices consisting of at least fifteen classroom hours,
and (V) has successfully completed two elective courses, each consisting
of fifteen classroom hours of study, as prescribed by the commission or
commissioner, or (ii) has equivalent experience or education as
determined by the commission or commissioner.]
[(B)] (d) (1) Each applicant [applying for a real estate broker's license
on or after January 1, 2022,] shall, before being admitted to such
examination, prove to the satisfaction of the commission or the
Commissioner of Consumer Protection that the applicant [(i) (I)] (A) (i) Substitute House Bill No. 6769
Public Act No. 23-84 25 of 60
has been actively engaged as a licensed real estate salesperson under the
supervision of [a licensed real estate broker in this state for] a
supervising licensee, who is licensed in this state, for a minimum period
of three years immediately preceding the date the applicant filed such
applicant's application, during which period such salesperson engaged
in the real estate business for at least one thousand five hundred hours
[during the three years immediately preceding the date on which such
applicant filed such applicant's application,] and such supervising
[licensed real estate broker] licensee, or such supervising [licensed real
estate broker's] licensee's authorized representative, has certified the
accuracy of a record of such applicant's active engagement on a form
provided by such applicant to such supervising [licensed real estate
broker] licensee or authorized representative, [(II)] (ii) has successfully
completed a course approved by the commission or commissioner in
real estate principles and practices of at least sixty classroom hours of
study, [(III)] (iii) has successfully completed a course approved by the
commission or commissioner in real estate legal compliance consisting
of at least fifteen classroom hours of study, [(IV)] (iv) has successfully
completed a course approved by the commission or commissioner in
real estate brokerage principles and practices consisting of at least
fifteen classroom hours, [(V)] (v) has successfully completed two
elective courses, each consisting of fifteen classroom hours of study, as
prescribed by the commission or commissioner, and [(VI)] (vi) has
represented a seller, buyer, lessor or lessee in at least four real estate
transactions that closed during the three years immediately preceding
the date on which such applicant filed such applicant's application, or
[(ii)] (B) has equivalent experience or education as determined by the
commission or commissioner. Each supervising [licensed real estate
broker] licensee, or authorized representative of such supervising
[licensed real estate broker] licensee, shall certify the accuracy or
inaccuracy of a record provided by an applicant to such supervising
[licensed real estate broker] licensee or authorized representative under
subparagraph [(B)(i)(I)] (A)(i) of this subdivision not later than ninety Substitute House Bill No. 6769
Public Act No. 23-84 26 of 60
days after such applicant provides such record to such supervising
[licensed real estate broker] licensee or authorized representative.
(2) The commission or the [Commissioner of Consumer Protection]
commissioner shall waive the elective courses under subparagraph
[(A)(i)(V) or (B)(i)(V)] (A)(v) of subdivision (1) of this subsection if the
applicant has successfully completed at least twenty real estate
transactions within five years immediately preceding the date of
application. [As used in this subdivision, "real estate transaction" means
any transaction in which real property is legally transferred to another
party or in which a lease agreement is executed between a landlord and
a tenant.]
(3) Each applicant for a real estate salesperson's license shall, before
being admitted to such examination, prove to the satisfaction of the
commission or the [Commissioner of Consumer Protection ]
commissioner that the applicant (A) has successfully completed a course
approved by the commission or commissioner in real estate principles
and practices consisting of at least sixty classroom hours of study, or (B)
has equivalent experience or education as determined by the
commission or commissioner.
(e) The provisions of subsections (c) and (d) of this section shall not
apply to any renewal of a real estate broker's license, or a real estate
salesperson's license issued prior to October 1, 1973.
(f) All licenses issued under the provisions of this chapter shall expire
[annually] biennially. At the time of application for a real estate broker's
license, there shall be paid to the [commission] department, for each
individual applicant and for each [proposed active member or officer of
a firm, partnership, association or corporation] business entity, the sum
of [five hundred sixty-five] one thousand one hundred thirty dollars,
and for the [annual] biennial renewal thereof, the sum of [three hundred
seventy-five] seven hundred fifty dollars, except that for licenses Substitute House Bill No. 6769
Public Act No. 23-84 27 of 60
expiring on March 31, 2022, a prorated renewal fee shall be charged to
reflect the fact that the March 2022, renewal shall expire on November
30, 2023. At the time of application for a real estate salesperson's license,
there shall be paid to the [commission two hundred eighty-five]
department five hundred seventy dollars and for the [annual] biennial
renewal thereof the sum of [two hundred eighty-five] five hundred
seventy dollars. [Three] Six dollars of each such [annual] biennial
renewal fee shall be payable to the Real Estate Guaranty Fund
established pursuant to section 20-324a, as amended by this act. A real
estate broker's license issued to any [partnership, association or
corporation] business entity shall entitle the [individual designated in
the application, as provided in section 20-312] designated broker, upon
compliance with the terms of this chapter, but without the payment of
any further fee, to perform all of the acts of a real estate broker under
this chapter on behalf of such [partnership, association or corporation]
business entity. Any license which expires and is not renewed [pursuant
to this subsection] on or before the ninetieth day following the
expiration date of such license may be reinstated by the commission [,
if, not later than two years after the date of expiration, the former
licensee pays to the commission for] or department, in the commission's
or department's discretion, provided such license has expired for less
than three years and the former licensee (1) attests that such former
licensee did not work in this state in the occupation or profession in
which such former licensee was licensed while such former licensee's
license was lapsed, (2) pays the renewal fee due for such license for the
year in which such license is reinstated, and (3) completes any
continuing education required for such license for the year preceding
such reinstatement. If an applicant for reinstatement worked in this state
in the occupation or profession in which such applicant was formerly
licensed while such license was lapsed, the applicant shall pay all license
and late fees due and owing for the lapse period and demonstrate that
such applicant has completed all continuing education required for such
license for the year preceding such reinstatement. Such late fees shall be Substitute House Bill No. 6769
Public Act No. 23-84 28 of 60
assessed for each real estate broker's license [the sum] in the amount of
three hundred seventy-five dollars and for each real estate salesperson's
license [the sum] in the amount of two hundred eighty-five dollars for
each year or fraction thereof from the date of expiration of the previous
license to the date of payment for reinstatement. [, except that any] If a
license has lapsed for at least three years, the former licensee is ineligible
for reinstatement under this subsection and may apply for a new license.
Notwithstanding any contrary provision of this subsection, a former
licensee whose license expired after such former licensee entered
military service shall be reinstated without payment of any fee if an
application for reinstatement is filed with the commission [within two
years after the date of expiration] or department before the third
anniversary of such expiration date, and the former licensee provides
evidence that is sufficient to demonstrate to the commission or
department that such former licensee completed at least six hours of
continuing education for such license, including, but not limited to, the
mandatory continuing education required for such license, during the
calendar year preceding the date on which such application for
reinstatement is filed. Any such reinstated broker's license shall expire
on the next succeeding November thirtieth. [, except that any broker's
license that is reinstated before March 31, 2022, shall expire on March
31, 2022.] Any such reinstated real estate salesperson's license shall
expire on the next succeeding May thirty-first.
(g) [Any person whose application has been filed as provided in this
section and who is refused a license shall be given notice and afforded
an opportunity for hearing as provided in the regulations adopted by
the Commissioner of Consumer Protection.] Following a denial of a
license or license renewal application filed under this section, the
department shall send a notice to the applicant who filed such
application disclosing such denial and that such applicant may request
a hearing by submitting to the Commissioner of Consumer Protection a
written hearing request not later than thirty days after the date such Substitute House Bill No. 6769
Public Act No. 23-84 29 of 60
denial notice was sent to such applicant. If the applicant requests a
hearing during such thirty-day period, the department shall send a
notice to such applicant disclosing the grounds for such denial and
conduct a hearing concerning such denial in accordance with the
provisions of chapter 54. If the commissioner's denial is sustained after
such hearing, the applicant may file a new application for such license
or license renewal not sooner than one year after the date on which such
denial was sustained.
Sec. 12. Section 20-314a of the general statutes is repealed and the
following is substituted in lieu thereof (Effective April 1, 2024):
(a) The Commissioner of Consumer Protection, with the advice and
assistance of the commission, may adopt regulations, in accordance
with chapter 54, relating to the approval of schools offering prelicensing
and continuing education courses, [in real estate principles and practice
and related subjects,] the content of such courses and the advertising to
the public of the services [of] offered by such schools. Such regulations
shall not require [(1)] approval of instructors at such schools. [, or (2) a
course to be conducted in a classroom location approved for such use
by a local fire marshal provided the course is conducted in a hotel,
restaurant or other public building or a place of public assembly, as
defined in section 19-13-B105 of the regulations of Connecticut state
agencies.] No school may be disapproved solely because the school's
courses are offered or taught by electronic means, and no course may be
disapproved solely because the course is offered or taught by electronic
means if such course satisfies the requirements established in section 4
of this act.
(b) The commission or department may exempt any applicant for a
real estate broker's license from the requirements concerning experience
under the provisions of subsection (d) of section 20-314, as amended by
this act, if the commission or department determines that such applicant
is unable to meet such requirements solely because such applicant has Substitute House Bill No. 6769
Public Act No. 23-84 30 of 60
been subjected to discrimination based on race, creed or color, which
discrimination interfered with such applicant's ability to meet such
requirements.
Sec. 13. Subsections (b) and (c) of section 20-316 of the general statutes
are repealed and the following is substituted in lieu thereof (Effective
April 1, 2024):
(b) No license under this chapter shall be issued by the [Department
of Consumer Protection] department to any applicant (1) whose
application for a license as a real estate [broker or real estate salesperson]
licensee has, within one year prior to the date of [his] such applicant's
application under this chapter, been rejected in this state, in any other
state or in the District of Columbia, or (2) whose license as a real estate
[broker or real estate salesperson] licensee has, within one year prior to
the date of [his] such applicant's application under this chapter, been
revoked in this state, in any other state or in the District of Columbia.
(c) No real estate license [as a real estate broker or real estate
salesperson] shall be issued under this chapter to any person who [has
not attained the age of] is younger than eighteen years of age.
Sec. 14. Section 20-317 of the general statutes is repealed and the
following is substituted in lieu thereof (Effective April 1, 2024):
(a) A person licensed in another state [as a real estate broker or
salesperson] to engage in the real estate business may become a real
estate [broker or real estate salesperson] licensee in this state by
conforming to all of the provisions of this chapter. The commission or
Commissioner of Consumer Protection shall recognize a current, valid
license issued to a currently practicing, competent real estate [broker or
real estate salesperson] professional engaging in the real estate business
in, and recognized by, another state as satisfactorily qualifying [the
broker or salesperson] such real estate professional for a license as a real Substitute House Bill No. 6769
Public Act No. 23-84 31 of 60
estate [broker or real estate salesperson] licensee under this chapter,
provided (1) the laws of the state in which [the broker or salesperson]
such real estate professional is licensed require that applicants for
licenses as real estate [brokers and real estate salespersons] licensees
establish their competency by written examinations, [and allow licenses
to be issued to residents of the state of Connecticut, licensed under this
chapter, without examination,] (2) the licensure requirements of such
state are substantially similar to or higher than those of this state, and
(3) [the broker or salesperson] such real estate professional has no
disciplinary proceeding or unresolved complaint pending against [the
broker or salesperson] such real estate professional. If [the] an applicant
real estate professional is licensed in a state that does not have such
requirements, such applicant real estate professional shall be required
to pass the Connecticut portion of the real estate examination.
(b) [Every applicant licensed in another state shall file an irrevocable
consent that suits and actions may be commenced against such
applicant in the proper court in any judicial district of the state in which
a cause of action may arise or in which the plaintiff may reside, by the
service of any process or pleading, authorized by the laws of this state,
on the chairperson of the commission, such consent stipulating and
agreeing that such service of such process or pleading shall be taken and
held in all courts to be as valid and binding as if service had been made
upon such applicant in the state of Connecticut. If any process or
pleadings under this chapter are served upon the chairperson, it shall
be by duplicate copies, one of which shall be filed in the office of the
commission, and the other immediately forwarded by registered or
certified mail, to the applicant against whom such process or pleadings
are directed, at the last-known address of such applicant as shown by
the records of the department. No default in any such proceedings or
action shall be taken unless it appears by affidavit of the chairperson of
the commission that a copy of the process or pleading was mailed to the
defendant as required by this subsection, and no judgment by default Substitute House Bill No. 6769
Public Act No. 23-84 32 of 60
shall be taken in any such action or proceeding within twenty days after
the date of mailing of such process or pleading to the out-of-state
defendant.] A real estate professional who satisfies the requirements
established in subsection (a) of this section may apply for licensure in
this state as set forth in section 21a-11b.
Sec. 15. Section 20-319 of the general statutes is repealed and the
following is substituted in lieu thereof (Effective April 1, 2024):
(a) The commission shall authorize the [Department of Consumer
Protection] department to issue [an annual] a two-year renewal license
to any applicant who possesses the qualifications specified in, and
[otherwise] has otherwise complied with the provisions of, this chapter
and any regulation adopted [under] pursuant to this chapter. The
commission shall authorize [said] the department to issue [an annual] a
two-year renewal of a real estate broker's license to any business entity
licensed pursuant to subsection (b) of section 20-312, as amended by this
act, provided such business entity: (1) Was so licensed as of September
30, 2005, notwithstanding the fact such business entity does not meet the
requirements for publicly traded corporations required by subdivision
[(3)] (5) of subsection (b) of section 20-312, as amended by this act, or (2)
changes [its] such business entity's designated [real estate] broker
pursuant to subsection (c) of section 20-312, as amended by this act.
(b) There [is] are hereby established [an annual] two-year renewal
[license] licenses to be issued by the [Department of Consumer
Protection. Persons licensed in accordance with the provisions of this
chapter] department to real estate licensees. Each real estate licensee
who files an application with the department seeking a two-year
renewal license shall fulfill a continuing education requirement.
[Applicants] Each applicant for [an annual] a two-year renewal license
[for real estate brokers or real estate salespersons] shall, in addition to
the other requirements imposed by the provisions of this chapter, [in
any even-numbered year,] submit to the commission or department Substitute House Bill No. 6769
Public Act No. 23-84 33 of 60
proof [of] that such applicant is in compliance with the continuing
education requirements [of] established in this [subsection to the
commission. Each] section. Each real estate licensee shall pay [an annual
four-dollar] a biennial eight-dollar continuing education processing fee
to cover the administrative costs associated with [the review] reviewing
and auditing [of] continuing education submissions. The continuing
education requirement for real estate licensees may be satisfied by
successful completion of any of the following during the two-year
period preceding [such] a renewal: (1) A course or courses, approved by
the commission or department, of continuing education in current real
estate practices and licensing laws, including, but not limited to,
practices and laws concerning common int erest communities,
consisting of not less than twelve hours of classroom study; or (2) a
written examination prepared and administered by either the
[Department of Consumer Protection] department, or by a national
testing service approved by the department, which demonstrates a
knowledge of current real estate practices and licensing laws; or (3)
equivalent continuing educational experience or study as determined
by regulations adopted pursuant to subsection (d) of this section. An
applicant for examination under subdivision (2) of this subsection shall
pay the required examination fee to the national testing service, if
administered by such testing service, or to the [Department of
Consumer Protection] department, if administered by the department.
(c) If the commission or department refuses to grant [an annual] a
two-year renewal license, the licensee or applicant, upon written notice
received as provided for in this chapter, may have recourse to any of the
remedies provided by sections 20-314, as amended by this act, and 20-
322.
(d) The Commissioner of Consumer Protection, in consultation with
the commission, shall adopt regulations, in accordance with chapter 54,
[concerning the approval of schools, institutions or organizations Substitute House Bill No. 6769
Public Act No. 23-84 34 of 60
offering courses in current real estate practices and licensing laws,
including, but not limited to, practices and laws concerning common
interest communities, and the content of such courses] to establish
continuing education requirements. Such regulations shall include, but
not be limited to: (1) Specifications for meeting equivalent continuing
educational experience or study; and (2) exceptions from continuous
education requirements for reasons of health or instances of individual
hardship. [No school, institution or organization that offers a course in
current real estate practices and licensing laws may be disapproved
solely because its courses are offered or taught by electronic means, and
no course may be disapproved solely because it is offered or taught by
electronic means.]
(e) If a real estate licensee fails to satisfy the continuing education
requirements established pursuant to this section for any two-year
license period, the real estate licensee shall pay to the department a fee
in the amount of:
(1) Three hundred fifteen dollars if such licensee reports to the
department, in a form and manner prescribed by the department, that
such real estate licensee failed to satisfy such continuing education
requirements during such license period but completed such continuing
education requirements not later than two months after such license
period expired; or
(2) Six hundred twenty-five dollars if such licensee reports to the
department, in a form and manner prescribed by the department, that
such real estate licensee failed to satisfy such continuing education
requirements during such license period but completed such continuing
education requirements more than two months after such license period
expired but not later than four months after such license period expired.
Sec. 16. Section 20-319a of the general statutes is repealed and the
following is substituted in lieu thereof (Effective April 1, 2024): Substitute House Bill No. 6769
Public Act No. 23-84 35 of 60
(a) [Any] Each licensed real estate salesperson or associate broker
who transfers [his employment from one broker to another or his] such
real estate salesperson's or associate broker's affiliation with a broker [as
an independent contractor] or property owner shall register such
transfer with, and pay a registration fee of twenty-five dollars to, the
[commission] department.
(b) A fee of twenty-five dollars shall be paid to the [commission]
department for the issuance of a license certification.
(c) A fee of twenty-five dollars shall be paid to the [Department of
Consumer Protection] department for any change made to, or transfer
of, a team's registration after the team files an initial registration with
the department pursuant to [subdivision (1) of] subsection (e) of section
20-312, as amended by this act.
(d) If a team transfers to a new supervising licensee, the new
supervising licensee shall electronically update the team's registration
information with the department not later than fourteen calendar days
after such transfer.
Sec. 17. Section 20-320 of the general statutes is repealed and the
following is substituted in lieu thereof (Effective April 1, 2024):
(a) The [Department of Consumer Protection] department may [,
upon the request of the commission or upon the verified complaint in
writing of any person, if such complaint, or such complaint together
with evidence, documentary or otherwise, presented in connection with
such complaint, shall make out a prima facie case,] investigate the
actions of any [real estate broker or real estate salesperson or any person
who assumes to act in any of such capacities] person who engages in the
real estate business or offers real estate courses within this state. The
commission or department may temporarily suspend or permanently
revoke any license or registration issued under the provisions of this Substitute House Bill No. 6769
Public Act No. 23-84 36 of 60
chapter and, in addition to or in lieu of such suspension or revocation,
may, in [its] the commission's or department's discretion, impose a fine
of not more than [two] five thousand dollars per violation at any time
when, after proceedings as provided in section 20-321, the commission
or department finds that the real estate licensee has by false or
fraudulent misrepresentation obtained a license or registration or that
the real estate licensee [is guilty of any of the following] has: (1)
[Making] Made any material misrepresentation; (2) [making] made any
false promise of a character likely to influence, persuade or induce; (3)
[acting] acted as an agent for more than one party in a transaction
without the knowledge of all parties for whom the real estate licensee
[acts] acted; (4) [representing or attempting] represented, or attempted
to represent, a real estate broker, other than the real estate licensee's
[employer or the broker with whom the licensee is affiliated] affiliated
or supervising licensee, without the express knowledge and consent of
[the] such real estate licensee's [employer or] affiliated [broker] or
supervising licensee; (5) [failing] failed, within a reasonable time, to
account for or remit any moneys [coming] which came into the real
estate licensee's possession and which belong to others; (6) [entering]
entered into an exclusive listing contract or buyer agency contract which
contains a fixed termination date if such contract also provides for an
automatic continuation of the period of such contract beyond such date;
(7) [failing] failed to deliver immediately a copy of any instrument to
any party or parties executing [the] such instrument, where such
instrument has been prepared by the real estate licensee or under [the]
such real estate licensee's supervision and where such instrument
relates to the employment of [the] such real estate licensee or to any
matters pertaining to the consummation of a lease, or the purchase, sale
or exchange of real property or any other type of real estate transaction
in which [the] such real estate licensee may participate as a [broker or a
salesperson] real estate licensee; (8) [conviction] been convicted, in a
court of competent jurisdiction, of forgery, embezzlement, obtaining
money under false pretenses, larceny, extortion, conspiracy to defraud Substitute House Bill No. 6769
Public Act No. 23-84 37 of 60
[,or other like] or a similar offense, [or offenses,] provided suspension
or revocation under this subdivision shall be subject to the provisions of
section 46a-80; (9) [collecting] collected compensation or a commission
in advance of services to be performed and [failing] failed, upon
demand of the person [paying the] who paid such compensation or [the]
commission, to render an accounting of the use of such [money]
compensation or commission; (10) [commingling] commingled funds of
others with the real estate licensee's own funds, or [failing] failed to keep
funds of others in an escrow or [trustee] trust account; (11) engaged in
any act or conduct which constitutes dishonest, fraudulent or improper
dealings; (12) [failing] failed to provide the disclosures required by
section 20-325c, [;] as amended by this act; or (13) [a violation of] violated
any provision of this chapter or any regulation adopted under this
chapter. [Any such suspension or revocation of a license or imposition
of a fine by the commission shall be a proposed final decision and
submitted to the commissioner in accordance with the provisions of
subsection (b) of section 21a-7.] Any fine collected pursuant to this
section shall be deposited in the Real Estate Guaranty Fund established
pursuant to section 20-324a, as amended by this act.
(b) No person shall be relieved of responsibility for the conduct or
actions of such person's agents, employees or officers by reason of such
person's compliance with the provisions of this chapter. No person who
engages in the real estate business shall be relieved of responsibility for
such person's own conduct or actions by reason of such person's
employment by, or association with, any real estate licensee or
development owner.
Sec. 18. Section 20-320a of the general statutes is repealed and the
following is substituted in lieu thereof (Effective April 1, 2024):
[(a)] No real estate [broker or real estate salesperson] licensee, no
person affiliated with [such broker or salesperson] a real estate licensee,
and no person engaging in the real estate business may receive a fee, Substitute House Bill No. 6769
Public Act No. 23-84 38 of 60
commission or other form of referral fee for the referral of any buyer of
real property to (1) an attorney-at-law admitted to practice in this state
or any person affiliated with such attorney or (2) any mortgage broker,
any lender, as defined in subdivision (5) of section 49-31d, or any person
affiliated with such mortgage broker or lender.
[(b) The Department of Consumer Protection may, upon the request
of the commission or upon the verified complaint in writing of any
person, if such complaint, or such complaint together with evidence,
documentary or otherwise, presented in connection with such
complaint, shall make out a prima facie case, investigate the actions of
any real estate broker or real estate salesperson or any person who
assumes to act in any of such capacities within this state. The
commission may temporarily suspend or permanently revoke any
license issued under the provisions of this chapter, and, in addition to
or in lieu of such suspension or revocation, may, in its discretion, impose
a fine of not more than one thousand dollars for the first offense at any
time when, after proceedings as provided in section 20-321, the
commission finds that the licensee is guilty of violating any of the
provisions of subsection (a) of this section. Any such suspension or
revocation of a license or imposition of a fine by the commission shall
be a proposed final decision and submitted to the commissioner in
accordance with the provisions of subsection (b) of section 21a-7.]
Sec. 19. Subsection (a) of section 20-320b of the general statutes is
repealed and the following is substituted in lieu thereof (Effective April
1, 2024):
(a) A real estate [broker or real estate salesperson licensed under this
chapter] licensee shall not influence residential real estate appraisals.
[For the purposes of this section, "influence residential real estate
appraisals" includes, but is not limited to, refusal or intentional failure
to refer a homebuyer, or encouraging other real estate brokers or real
estate salespersons not to refer a homebuyer, to a mortgage broker, as Substitute House Bill No. 6769
Public Act No. 23-84 39 of 60
defined in section 36a-760, or a lender, as defined in section 36a-760,
based solely on the fact that the mortgage broker or lender uses an
appraiser who has provided an appraisal reflecting a fair market value
estimate that was less than the sale contract price.]
Sec. 20. Section 20-323 of the general statutes is repealed and the
following is substituted in lieu thereof (Effective April 1, 2024):
Any real estate licensee under this chapter who is convicted of a
violation of any of the offenses enumerated in subdivision (8) of
subsection (a) of section 20-320, as amended by this act, may incur a
forfeiture of [his or her] such real estate licensee's license and all moneys
that may have been paid for such license. The clerk of any court in which
such conviction has been rendered shall forward to the commission
without charge a certified copy of such conviction. The [commissioner]
Commissioner of Consumer Protection may revoke such licensee's
license after proceedings as provided in section 20-321. Such notice shall
be conclusive of the revocation of such license. Application for
reinstatement of such license shall be subject to the provisions of section
46a-80.
Sec. 21. Section 20-324a of the general statutes is repealed and the
following is substituted in lieu thereof (Effective April 1, 2024):
The commission shall establish and maintain a Real Estate Guaranty
Fund from which, subject to the provisions of this section and sections
[20-324a] 20-324b to [20-324j] 20-324i, inclusive, as amended by this act,
any person aggrieved by any action of a real estate [broker or real estate
salesperson] licensee, duly licensed in this state under section 20-312, as
amended by this act, by reason of the embezzlement of money or
property, or money or property unlawfully obtained from any person
by false pretenses, artifice or forgery or by reason of any fraud,
misrepresentation or deceit by or on the part of any such real estate
[broker or real estate salesperson] licensee or the unlicensed employee Substitute House Bill No. 6769
Public Act No. 23-84 40 of 60
of any such real estate [broker] licensee, may recover, upon approval by
the commission of an application brought pursuant to the provisions of
section 20-324e, as amended by this act, compensation in an amount not
exceeding in the aggregate the sum of twenty-five thousand dollars in
connection with any one real estate transaction or claim, regardless of
the number of persons aggrieved or parcels of real estate involved in
such real estate transaction or claim.
Sec. 22. Section 20-324b of the general statutes is repealed and the
following is substituted in lieu thereof (Effective April 1, 2024):
[Any person who receives a real estate broker's or real estate
salesperson's license under this chapter for the first time shall] Each real
estate licensee shall, upon application for a license under this chapter,
pay an additional one-time fee of twenty dollars in addition to all other
fees payable, which additional fee shall be credited to the Real Estate
Guaranty Fund. The Real Estate Guaranty Fund shall also be credited as
provided in sections 20-314, as amended by this act, and 20-320, as
amended by this act.
Sec. 23. Section 20-324d of the general statutes is repealed and the
following is substituted in lieu thereof (Effective April 1, 2024):
No application to recover compensation under sections 20-324a to
[20-324j] 20-324i, inclusive, as amended by this act, which might
subsequently result in an order for collection from the Real Estate
Guaranty Fund shall be brought later than two years from the final
determination of, or expiration of time for appeal in connection with,
any judgment.
Sec. 24. Subsections (a) to (f), inclusive, of section 20-324e of the
general statutes are repealed and the following is substituted in lieu
thereof (Effective April 1, 2024):
(a) When any aggrieved person commences any action for a Substitute House Bill No. 6769
Public Act No. 23-84 41 of 60
judgment which may result in collection from the Real Estate Guaranty
Fund, the aggrieved person shall notify the commission or department
in writing to this effect at the time of the commencement of such action.
Such written notice shall toll the time for making application to the
commission pursuant to section 20-324d, as amended by this act. The
commission or department shall have the right to enter an appearance,
intervene in or defend any such action and may waive the required
written notice for good cause shown.
(b) When any aggrieved person recovers a valid judgment in the
Superior Court against any real estate [broker or real estate salesperson]
licensee or the unlicensed employee of any such real estate [broker]
licensee for loss or damages sustained by reason of the embezzlement
of money or property, or money or property unlawfully obtained from
any person by false pretenses, artifice or forgery or by reason of any
fraud, misrepresentation or deceit by or on the part of such real estate
[broker or salesperson] licensee or the unlicensed employee of any such
real estate broker, such aggrieved person may upon the final
determination of, or expiration of time for appeal in connection with,
any judgment, apply to the commission for an order directing payment
out of the Real Estate Guaranty Fund of the amount unpaid upon the
judgment, subject to the limitations stated in section 20-324a, as
amended by this act, and the limitations specified in this section.
(c) The commission shall proceed upon such application in a
summary manner, and, upon the hearing thereof, the aggrieved person
shall be required to show that: (1) [He] Such aggrieved person is not a
spouse of the debtor or the personal representative of such spouse; (2)
[he] such aggrieved person has complied with all the requirements of
this section; (3) [he] such aggrieved person has obtained a judgment as
provided in subsection (b) of this section, stating the amount thereof and
the amount owing thereon at the date of the application; (4) [he] such
aggrieved person has caused to be issued a writ of execution upon the Substitute House Bill No. 6769
Public Act No. 23-84 42 of 60
judgment and the officer executing the same has made a return showing
that no personal or real property of the judgment debtor liable to be
levied upon in satisfaction of the judgment could be found, or that the
amount realized on the sale of them or of such of them as were found,
under the execution, was insufficient to satisfy the judgment, stating the
amount so realized and the balance remaining due on the judgment
after application thereon of the amount realized; (5) [he] such aggrieved
person has made all reasonable searches and inquiries to ascertain
whether the judgment debtor possesses real or personal property or
other assets, liable to be sold or applied in satisfaction of the judgment;
and (6) that by such search [he] such aggrieved person has discovered
no personal or real property or other assets liable to be sold or applied,
or that [he] such aggrieved person has discovered certain of them,
describing them, owned by the judgment debtor and liable to be so
applied, and that [he] such aggrieved person has taken all necessary
action and proceedings for the realization thereof, and that the amount
thereby realized was insufficient to satisfy the judgment, stating the
amount so realized and the balance remaining due on the judgment
after application of the amount realized.
(d) Whenever the aggrieved person satisfies the commission that it is
not practicable to comply with one or more of the requirements
enumerated in subdivisions (4), (5) and (6) of subsection (c) of this
section and that [the] such aggrieved person has taken all reasonable
steps to collect the amount of the judgment or the unsatisfied part
thereof and has been unable to collect the same, the commission may in
its discretion waive such requirements.
(e) The commission shall order payment from the Real Estate
Guaranty Fund of any sum it shall find to be payable upon the claim,
pursuant to the provisions of and in accordance with the limitations
contained in this section and section 20-324a, as amended by this act, if
the commission is satisfied, upon the hearing, of the truth of all matters Substitute House Bill No. 6769
Public Act No. 23-84 43 of 60
required to be shown by the aggrieved person by subsection (c) of this
section and that [the] such aggrieved person has fully pursued and
exhausted all remedies available to [him] such aggrieved person for
recovering the amount awarded by the judgment of the court.
(f) If the commission pays from the Real Estate Guaranty Fund any
amount in settlement of a claim or toward satisfaction of a judgment
against a [licensed real estate broker or real estate salesperson] real
estate licensee pursuant to an order under subsection (e) of this section,
such [broker or salesperson] real estate licensee shall not be eligible to
receive a new license until [he] such real estate licensee has repaid in
full, plus interest at a rate to be determined by the commission and
which shall reflect current market rates, the amount paid from the fund
on [his] such real estate licensee's account. A discharge in bankruptcy
shall not relieve a person from the penalties and disabilities provided in
this subsection.
Sec. 25. Section 20-324i of the general statutes is repealed and the
following is substituted in lieu thereof (Effective April 1, 2024):
The Commissioner of Consumer Protection, with the advice and
assistance of the commission, may adopt regulations, in accordance
with chapter 54, to carry out the provisions of sections 20-324a to [20-
324j] 20-324h, inclusive, as amended by this act.
Sec. 26. Section 20-325 of the general statutes is repealed and the
following is substituted in lieu thereof (Effective April 1, 2024):
Any person who engages in the real estate business [of a real estate
broker or real estate salesperson] without obtaining a license as
provided in this chapter shall be fined not more than one thousand
dollars per violation or imprisoned not more than six months or both,
and shall be ineligible to obtain a license for one year from the date of
conviction of such offense, except that the commission or Commissioner Substitute House Bill No. 6769
Public Act No. 23-84 44 of 60
of Consumer Protection may grant a license to such person within such
one-year period upon application and after a hearing on such
application.
Sec. 27. Subsection (a) of section 20-325a of the general statutes is
repealed and the following is substituted in lieu thereof (Effective April
1, 2024):
(a) [No] Except for an out-of-state real estate licensee who is an
individual and seeking to recover agreed compensation authorized
under subsection (e) of section 20-325l, as amended by this act, no
person who is not licensed under the provisions of this chapter, and who
was not so licensed at the time the person performed the acts or
rendered the services for which recovery is sought, shall commence or
bring any action in any court of this state, after October 1, 1971, to
recover any commission, compensation or other payment with respect
to any act done or service rendered by the person, the doing or
rendering of which is prohibited under the provisions of this chapter
except by persons duly licensed under this chapter.
Sec. 28. Section 20-325c of the general statutes is repealed and the
following is substituted in lieu thereof (Effective April 1, 2024):
[(a) As used in this section "residential real property" means one to
four-family residential real estate located in this state.]
[(b)] (a) Notwithstanding any provision of the general statutes, [to the
contrary,] no real estate [broker or real estate salesperson] licensee, and
no person affiliated with such [broker or salesperson] real estate
licensee, who receives a fee, commission or other valuable consideration
for the sale of residential real property, may receive a fee, commission
or other valuable consideration for negotiating, soliciting, arranging,
placing or finding a first mortgage loan for the buyer in connection with
the same sale unless disclosure is made in accordance with the Substitute House Bill No. 6769
Public Act No. 23-84 45 of 60
provisions of subsection [(c)] (b) of this section. Any fee, commission or
other valuable consideration received by such [broker or salesperson]
real estate licensee for negotiating, soliciting, arranging, placing or
finding a first mortgage loan shall (1) be related to the services actually
performed, as determined by the Banking Commissioner by regulations
adopted pursuant to chapter 54, (2) not be imposed for the referral of
the buyer to the mortgage lender by such [broker or salesperson] real
estate licensee, and (3) be paid directly to [the broker or salesperson]
such real estate licensee by the buyer rather than from the mortgage loan
proceeds at the time of closing.
[(c)] (b) Any disclosure made pursuant to subsection [(b)] (a) of this
section shall be made to and acknowledged by the buyer prior to the
time the buyer signs a contract with the real estate [broker or
salesperson] licensee for mortgage brokering services. Such disclosure
shall include the following notice printed in at least ten-point boldface
capital letters:
I UNDERSTAND THAT THE REAL ESTATE BROKER OR
SALESPERSON IN THIS TRANSACTION HAS OFFERED TO ASSIST
ME IN FINDING A MORTGAGE LOAN. ADDITIONALLY, I
UNDERSTAND THAT THIS REAL ESTATE BROKER OR
SALESPERSON DOES NOT REPRESENT ANY PARTICULAR
MORTGAGE LENDER AND WILL ATTEMPT TO OBTAIN THE BEST
TERMS AVAILABLE WITHIN THE MORTGAGE LOAN MARKET
FOR MY SPECIFIC HOME FINANCING NEEDS. IF THE REAL
ESTATE BROKER OR SALESPERSON DOES NOT FULFILL HIS
FIDUCIARY OBLIGATION I MAY FILE A COMPLAINT WITH THE
DEPARTMENT OF BANKING. I ALSO UNDERSTAND THAT I MAY
ATTEMPT TO FIND A MORTGAGE LOAN TO FINANCE THE
PURCHASE OF MY HOME WITHOUT THE ASSISTANCE OF THE
REAL ESTATE BROKER OR SALESPERSON IN WHICH CASE I WILL
NOT BE OBLIGATED TO PAY A FEE TO THE REAL ESTATE BROKER Substitute House Bill No. 6769
Public Act No. 23-84 46 of 60
OR SALESPERSON.
[(d)] (c) No mortgage lender may refuse to close a mortgage loan
secured by residential real property because the buyer has not paid a
fee, commission or other valuable consideration to a real estate [broker
or salesperson] licensee for negotiating, soliciting, arranging, placing or
finding the first mortgage loan.
Sec. 29. Section 20-325d of the general statutes is repealed and the
following is substituted in lieu thereof (Effective April 1, 2024):
(a) [On and after January 1, 2018, a real estate broker or real estate
salesperson licensed under this chapter] A real estate licensee who
represents a seller, lessor, prospective purchaser or lessee in a real estate
transaction shall, upon request, disclose [,] in writing [,] the identity of
[his or her] the real estate licensee's client to any party to the transaction
who is not represented by another real estate [broker or real estate
salesperson licensed under this chapter. The real estate broker or real
estate salesperson shall make the disclosure required under this section:
(1) If the transaction concerns residential real property, as defined in
section 20-325c, (A) at the beginning of the first personal meeting
concerning the prospective purchaser's or lessee's specific needs in the
transaction, or (B) at the beginning of the first personal meeting with the
seller or lessor concerning the seller's or lessor's real property; or (2) if
the transaction is a commercial real estate transaction, as defined in
section 20-311, before the prospective purchaser or lessee signs the
purchase contract or lease. Such disclosure shall be signed by a
prospective purchaser or lessee and attached to any offer or agreement
to purchase or lease signed by a prospective purchaser or lessee]
licensee.
(b) Not later than the first personal meeting, a real estate licensee
shall: (1) Disclose in writing to a prospective party (A) the types of
agency relationships available to the prospective party, and (B) that the Substitute House Bill No. 6769
Public Act No. 23-84 47 of 60
prospective party should not share confidential information with the
real estate licensee until such prospective party has entered into a
written representation agreement with such real estate licensee; and (2)
for residential real estate transactions, provide to a prospective party
information on fair housing discrimination, including a description of
federal and state fair housing laws, protected classes, where to obtain
additional information and available resources. The disclosures
required pursuant to this subsection may be delivered electronically to
the prospective party.
(c) The Commissioner of Consumer Protection shall adopt such
regulations, in accordance with chapter 54, as the commissioner deems
necessary to carry out the provisions of this section.
Sec. 30. Section 20-325f of the general statutes is repealed and the
following is substituted in lieu thereof (Effective April 1, 2024):
No real estate broker shall make any unilateral offer of subagency or
agree to compensate, appoint, employ, cooperate with or otherwise
affiliate with a subagent for the sale or purchase of real property.
[without the informed written consent of the person whom the real
estate broker represents. Such written consent shall contain the name
and real estate license number of the real estate broker to be appointed
as the subagent and shall contain a statement notifying the person
whom the real estate broker represents that the law imposes vicarious
liability on the principal for the acts of the subagent.]
Sec. 31. Section 20-325h of the general statutes is repealed and the
following is substituted in lieu thereof (Effective April 1, 2024):
[(a)] No real estate licensee shall: (1) Reveal any confidential
information concerning a prospective party or a person whom the real
estate licensee represented either as an agent, designated buyer agent or
[a] designated seller agent; (2) use any confidential information Substitute House Bill No. 6769
Public Act No. 23-84 48 of 60
concerning [that] such prospective party or person to [the] such
prospective party's or person's disadvantage; or (3) use any confidential
information concerning [that] such prospective party or person for [the]
such real estate [broker's or real estate salesperson's] licensee's
advantage or the advantage of a third party, except (A) as required by
legal process, (B) as necessary to defend [the] such real estate [broker or
real estate salesperson] licensee from allegations of wrongful or
negligent conduct, or (C) as necessary to prevent the commission of a
crime.
[(b) As used in this section, "confidential information" means facts
concerning a person's assets, liabilities, income, expenses, motivations
to purchase, rent or sell real property and previous offers received or
made to purchase or lease real property which are not authorized by the
client, a matter of general knowledge, part of a public record or file to
which access is authorized pursuant to section 1-210 or otherwise
subject to disclosure under any other provision of the general statutes
or any regulation of Connecticut state agencies.]
Sec. 32. Section 20-325l of the general statutes is repealed and the
following is substituted in lieu thereof (Effective April 1, 2024):
[(a) As used in this section: (1) "Licensed broker" means a person
licensed under this chapter as a real estate broker, (2) "licensed
salesperson" means a person licensed under this chapter as a real estate
salesperson, (3) "out-of-state broker" means a person licensed in another
state as a real estate broker who is not licensed as a real estate broker
under this chapter, (4) "out-of-state salesperson" means a person
licensed in another state as a real estate salesperson who is not licensed
as a real estate salesperson under this chapter, (5) "person" means a
person, as defined in section 20-311, and (6) "advertising" means
advertising, as defined in section 20-329a.]
[(b)] (a) An out-of-state broker may perform acts with respect to a Substitute House Bill No. 6769
Public Act No. 23-84 49 of 60
commercial real estate transaction that require a license under this
chapter, provided the out-of-state broker: [complies with the laws of this
state with respect to the transaction and:]
(1) Works in cooperation with a licensed broker, whether in a
cobrokerage, referral or other cooperative agreement or arrangement;
(2) Enters into a written agreement with a licensed broker that
includes the terms of cooperation and any compensation to be paid by
the licensed broker and a statement that the out-of-state broker and the
out-of-state broker's agents will comply with the laws of this state;
(3) Provides the licensed broker a copy of the out-of-state broker's
license or other proof of licensure from the [jurisdictions] states where
the out-of-state broker maintains a license as a real estate broker; [and]
(4) Deposits all escrow funds, security deposits, and other money
received pursuant to the commercial real estate transaction to be held as
provided in section 20-324k unless the agreement required in
subdivision (2) of this subsection specifies otherwise; [.]
(5) Complies with the laws of this state with respect to the transaction;
and
(6) Is credentialled as a real estate broker in another state.
[(c)] (b) An out-of-state salesperson may perform acts with respect to
a commercial real estate transaction that require a license as a real estate
salesperson under this chapter, provided the out-of-state salesperson
complies with the laws of this state with respect to the transaction and:
(1) Works under the direct supervision of an out-of-state broker who
meets the requirements set forth in [subdivision (1)] subdivisions (1), (5)
and (6) of subsection [(b)] (a) of this section; and
(2) Provides the licensed broker who is working in cooperation with Substitute House Bill No. 6769
Public Act No. 23-84 50 of 60
the out-of-state broker a copy of the out-of-state salesperson's license or
other proof of licensure from the [jurisdictions] states where the out-of-
state salesperson maintains a license as a real estate salesperson.
[(d)] (c) Any out-of-state broker or out-of-state salesperson licensed
in a state that has no distinction between a real estate broker license and
a real estate salesperson license shall be subject to the requirements of
subsection [(b)] (a) of this section with regard to any commercial real
estate transaction in this state.
[(e)] (d) Each out-of-state broker or out-of-state salesperson that
advertises for sale commercial real estate pursuant to this section shall
include in any advertising material the name of the licensed broker with
whom the out-of-state broker has a written agreement pursuant to
subdivision (2) of subsection [(b)] (a) of this section. Nothing in this
section shall permit an out-of-state broker or out-of-state salesperson to
accompany a prospective buyer at the site of commercial real estate
pursuant to a real estate transaction in this state.
(e) An out-of-state real estate licensee may receive compensation for
referring to a real estate licensee in this state a prospective party to a real
estate transaction in this state.
Sec. 33. Section 20-325m of the general statutes is repealed and the
following is substituted in lieu thereof (Effective April 1, 2024):
(a) Any real estate broker licensed under the provisions of this
chapter who engages in the real estate business [, as defined in section
20-311,] shall retain the following records for a period of not less than
seven years after any real estate transaction closes, all funds held in
escrow for such transaction are disbursed or the listing agreement or
buyer or tenant representation agreement expires, whichever occurs
later: (1) All purchase contracts, leases, options, written offers or
counteroffers drafted by such broker or on behalf of such broker; (2) the Substitute House Bill No. 6769
Public Act No. 23-84 51 of 60
listing agreement or buyer or tenant representation agreement, any
extensions of or amendments to such agreements and any disclosures
or agreements required pursuant to sections 20-325a to 20-325l,
inclusive, as amended by this act; and (3) all canceled checks, unused
checks, checkbooks and bank statements for any escrow or trust account
maintained pursuant to section 20-324k. [Such]
(b) Each leasing agent shall retain copies of such leasing agent's
employment agreement or contract with a development owner for a
period of not less than seven years.
(c) All records [may] required under subsection (a) or (b) of this
section shall be retained in [any format, electronic or otherwise,] an
electronic format that is capable of producing an accurate copy of the
original documents unless it is commercially impractical for a real estate
broker or leasing agent to retain such records in such format. If it is
commercially impractical for a real estate broker or leasing agent to
retain such records in an electronic format, the real estate broker or
leasing agent shall retain such records in a paper format that is capable
of producing an accurate copy [in paper format] of the original
[document] documents. Each real estate broker or leasing agent shall
make such records available to the department upon any request made
by the department for such records.
Sec. 34. Section 20-327c of the general statutes is repealed and the
following is substituted in lieu thereof (Effective April 1, 2024):
(a) On or after January 1, 1996, every agreement to purchase
residential real estate, for which a written residential condition report
is, or written residential condition reports are, required pursuant to
section 20-327b, shall include a requirement that the seller credit the
purchaser with the sum of five hundred dollars at closing should the
seller fail to furnish the written residential condition report or reports as
required by sections 20-327b to 20-327e, inclusive. Substitute House Bill No. 6769
Public Act No. 23-84 52 of 60
(b) [(1)] No seller who credits a purchaser pursuant to subsection (a)
of this section shall, by reason of such credit, be excused from disclosing
to the purchaser any defect in the residential real estate if such defect:
[(A)] (1) Is subject to disclosure pursuant to section 20-327b;
[(B)] (2) Is within the seller's actual knowledge of such residential real
estate; and
[(C)] (3) Significantly impairs [(i)] (A) the value of such residential
real estate, [(ii)] (B) the health or safety of future occupants of such
residential real estate, or [(iii)] (C) the useful life of such residential real
estate.
[(2)] (c) A purchaser may, without limiting any other remedies
available to the purchaser, bring a civil action in the judicial district in
which the residential real estate is located to recover actual damages
from a seller who fails to disclose to such purchaser any defect described
in [subdivision (1) of this subsection to such purchaser] subsection (b)
of this section.
Sec. 35. Subsections (a) and (b) of section 20-327f of the general
statutes are repealed and the following is substituted in lieu thereof
(Effective April 1, 2024):
(a) With respect to a contract for the sale of [a one-to-four family]
residential real property, if the seller provides written notice to the
purchaser, prior to, or upon, entering into the contract, of the availability
of the lists of hazardous waste facilities pursuant to section 22a-134f, the
seller and any real estate licensee shall be deemed to have fully satisfied
any duty to disclose the presence of all hazardous waste facilities, as
defined in section 22a-134f even if: (1) The list required to be submitted
pursuant to section 22a-134f has not been submitted, (2) the list has not
been received or made available as required in section 22a-134f, or (3)
there is an error, omission or inaccuracy in the list. Substitute House Bill No. 6769
Public Act No. 23-84 53 of 60
(b) With respect to a contract for the sale of [a one-to-four family]
residential real property, if the seller provides written notice to the
purchaser, prior to, or upon, entering into the contract, of the availability
of information concerning environmental matters from the United
States Environmental Protection Agency, the National Response Center,
the United States Department of Defense and third-party providers, the
seller and any real estate licensee shall be deemed to have fully satisfied
any duty to disclose environmental matters concerning properties other
than the property that is the subject of the contract.
Sec. 36. Subsection (a) of section 20-327g of the general statutes is
repealed and the following is substituted in lieu thereof (Effective April
1, 2024):
(a) With respect to a contract for the sale of [a one-to-four family]
residential real property, if the seller provides written notice to the
purchaser, prior to, or upon, entering into the contract, that a list of local
properties upon which hunting or shooting sports regularly take place
may be available at the office of the town clerk, the seller and any real
estate licensee shall be deemed to have fully satisfied any duty to
disclose the presence of local properties upon which hunting or
shooting sports regularly take place, even if (1) the list is not available
at the office of the town clerk, or (2) there is an error, omission or
inaccuracy in the list.
Sec. 37. Subsection (b) of section 20-327h of the general statutes is
repealed and the following is substituted in lieu thereof (Effective April
1, 2024):
(b) Commencing sixty days after the date on which the Commission
on Human Rights and Opportunities makes a disclosure form available
pursuant to subsection (a) of this section, each person who offers a
residential real property [containing two or more units] in the state for
sale, exchange or for lease with option to buy shall attach a photocopy, Substitute House Bill No. 6769
Public Act No. 23-84 54 of 60
duplicate original, facsimile transmission or other exact reproduction or
duplicate of such disclosure form, signed by the prospective purchaser,
to any purchase agreement, option or lease containing a purchase
option, at the time of closing.
Sec. 38. Section 20-328 of the general statutes is repealed and the
following is substituted in lieu thereof (Effective April 1, 2024):
The Commissioner of Consumer Protection, with advice and
assistance from the commission, may adopt regulations, in accordance
with chapter 54, relating to the form and manner of filing applications
for licenses under this chapter and the manner in which [licensed real
estate brokers and licensed real estate salespersons] real estate licensees
shall conduct the real estate business.
Sec. 39. Section 20-329 of the general statutes is repealed and the
following is substituted in lieu thereof (Effective April 1, 2024):
The provisions of this chapter concerning the licensure of real estate
[brokers and real estate salespersons] licensees shall not apply to: (1)
Any person who as owner or lessor performs any of the acts enumerated
in section 20-311, as amended by this act, with reference to property
owned, leased or sought to be acquired or leased by the person, or to the
person's regular employees who live at such property and are employed
as on-site residential superintendents, janitors or custodians, with
respect to the property so owned or leased or sought to be acquired or
leased when such acts are performed in the regular course of, or incident
to, the management of such property and the investment therein; (2) any
person acting as attorney-in-fact under a duly executed power of
attorney from the owner authorizing the final consummation by
performance of any contract for the sale, leasing or exchange of real
estate, or to service rendered by any attorney-at-law in the performance
of the attorney-at-law's duties as such attorney-at-law; (3) a receiver,
trustee in bankruptcy, administrator, executor or other fiduciary, while Substitute House Bill No. 6769
Public Act No. 23-84 55 of 60
acting as such, or any person selling real estate under order of any court,
or to a trustee acting under a trust agreement, deed of trust or will, or
the regular salaried employees thereof; (4) witnesses in court as to the
values of real estate; (5) persons in the employ of the federal or state
government or any political subdivision thereof while acting in the
course of such employment; (6) any employee of any nonprofit housing
corporation that (A) has been certified as a tax-exempt organization
under Section 501(c)(3) of the Internal Revenue Code of 1986, or any
subsequent corresponding internal revenue code of the United States,
as from time to time amended, and manages a housing project, or (B)
manages a housing project assisted in whole or in part by the federal
government pursuant to Section 8 of The United States Housing Act of
1937, as amended from time to time, while such employee is performing
duties in the regular course of, or incidental to, the management of such
housing project; (7) any person licensed to maintain or operate a mobile
manufactured home park under chapter 412 who performs any of the
acts enumerated in section 20-311, as amended by this act, with
reference to lots or mobile manufactured homes within the park or to
the person's employees with respect to lots or mobile manufactured
homes within such park when such acts are performed in the regular
course of, or incidental to, the management of such property and the
investment therein; (8) persons licensed as sellers of mobile
manufactured homes under section 21-67; [or] (9) any person or such
person's regular employee who, as owner, lessor, licensor, manager,
representative or agent manages, leases, or licenses space on or in a
tower, building or other structure for (A) "personal wireless services
facilities" or facilities for "private mobile service" as those terms are
defined in 47 USC 332, which facilities shall be unattended, and the
installation and maintenance of related devices authorized by the
Federal Communications Commission, and ancillary equipment used to
operate such devices and equipment shelters therefor, in an area not to
exceed three hundred sixty square feet for any one service established
by the Federal Communications Commission in 47 CFR, as amended Substitute House Bill No. 6769
Public Act No. 23-84 56 of 60
from time to time, by a provider of any such service, and (B) any right
appropriate to access such facilities and connect or use utilities in
connection with such facilities; (10) any leasing agent who is solely
engaged in leasing activities authorized under this chapter; and (11) any
person who is employed by a broker to perform clerical services, which
person shall not negotiate the terms of an agreement, list a property
unless on behalf of a real estate licensee, open or be listed as a signatory
on a broker's escrow or trust account or sell, buy or lease real property
for another person for compensation.
Sec. 40. Section 20-329a of the general statutes is repealed and the
following is substituted in lieu thereof (Effective April 1, 2024):
As used in this section and sections [20-329a] 20-329b to 20-329n,
inclusive, as amended by this act:
(1) "Disposition" or "dispose of" means any sale, exchange, lease,
assignment, award by lottery or other transaction designed to convey
an interest in a subdivision or parcel, lot, or unit in a subdivision when
undertaken for gain or profit;
(2) "Offer" means every inducement, solicitation or attempt to bring
about a disposition;
(3) "Person" means an individual, firm, company, association,
corporation, limited liability company, government or governmental
subdivision or agency, business trust, estate, trust, partnership,
unincorporated association or organization, two or more of any of the
foregoing having a joint or common interest, or any other legal or
commercial entity;
(4) "Broker" means a resident real estate broker duly licensed under
this chapter;
(5) "Salesperson" means any person duly licensed as a real estate Substitute House Bill No. 6769
Public Act No. 23-84 57 of 60
salesperson under this chapter;
(6) "Purchaser" means a person who acquires an interest in any lot,
parcel or unit in a subdivision; and
(7) "Subdivision" means any improved or unimproved land or tract
of land located outside this state which is divided or proposed to be
divided into five or more lots, parcels, units, or interests for the purpose
of disposition, at any time as part of a common promotional plan. Any
land which is under common ownership or which is controlled by a
single developer or a group of developers acting in concert, is
contiguous in area, and is designated or advertised as a common unit or
known by a common name, shall be presumed, without regard to the
number of lots, parcels, units or interests covered by each individual
offering, to be part of a common promotional plan. [; and]
[(8) "Advertising" means publishing or causing to be published: (A)
By means of any newspaper or periodical; (B) by means of any radio or
television broadcast; (C) by means of any written or printed or
photographic matter produced by any duplicating process producing
ten copies or more, any information offering for sale or for the purpose
of causing or inducing any other person to purchase or to acquire an
interest in the title to subdivided lands, including the land sales contract
to be used and any photographs or drawings or artist's representations
of physical conditions or facilities on the property existing or to exist; or
(D) by means of any material used in connection with the disposition or
offer of subdivided lands by radio, television, telephone or any other
electronic means. "Advertising" does not include: Stockholder
communications such as annual reports and interim financial reports,
proxy materials, registration statements, securities prospectuses,
applications for listing securities on stock exchanges, and the like;
prospectuses, property reports, offering statements or other documents
required to be delivered to prospective purchasers by an agency of any
other state or the federal government; all communications addressed to Substitute House Bill No. 6769
Public Act No. 23-84 58 of 60
and relating to the account of any persons who have previously
executed a contract for the purchase of the subdivider's lands except
where directed to the sale of additional lands; or press releases or other
communications delivered to newspapers or other periodicals for
general information or public relations purposes, provided no charge is
made by such newspapers or other periodicals for the publication or use
of any part of such communications.]
Sec. 41. Section 20-329n of the general statutes is repealed and the
following is substituted in lieu thereof (Effective April 1, 2024):
All moneys paid or advanced by a purchaser or lessee or prospective
purchaser or prospective lessee for any lot, parcel, unit or interest in any
subdivision, the disposition of which is controlled by sections 20-329a,
as amended by this act, 20-329b, 20-329d, 20-329e, 20-329f [,] and 20-
329h, [and 20-329i,] or such portion of such moneys as the commission
may determine is sufficient for the protection of the interests of such
purchaser or lessee shall be deposited by the seller or lessor in an escrow
account, approved by the commission, in a bank doing business in this
state. Such money shall remain in such escrow account until (1) a proper
and valid release is obtained for such money, (2) the owner or
subdivider or the purchaser or lessee has defaulted under their contract
for sale or lease and the commission or a court has made a determination
as to the disposition of such money, or (3) the owner or subdivider or
the seller or lessor orders the return of such money to such purchaser or
lessee.
Sec. 42. Subsection (c) of section 47-90a of the general statutes is
repealed and the following is substituted in lieu thereof (Effective April
1, 2024):
(c) Every person who directly or indirectly controls a declarant liable
under subsection (a) of this section, every general partner, officer or
director of a declarant and every person occupying a similar status or Substitute House Bill No. 6769
Public Act No. 23-84 59 of 60
performing a similar function, every employee of the declarant who
materially aids in the disposition, and every agent who materially aids
in the disposition is also liable jointly and severally with and to the same
extent as the declarant, provided the plaintiff sustains the burden of
proof that such person knew or, in the exercise of reasonable care
expected by such persons in the reasonable exercise of their duties,
should have known of the existence of the facts by reason of which the
liability is alleged to exist. There is a right to contribution in cases of
contract among persons so liable. No person shall be liable under this
section whose relationship to the declarant or other person consists
solely of rendering professional and other customary services,
including, but not limited to: (1) An attorney-at-law, architect, land
surveyor or engineer; (2) a lending institution which is not a declarant
whose relationship to the declarant consists solely of rendering
customary banking services and holding a mortgage on all or a portion
of the condominium which mortgage, or agreements or instruments
relating thereto, may contain mutual covenants and agreements
concerning the approval of the condominium instruments and
amendments thereto, and regulates the activity of the declarant under
the condominium instruments or an officer, director or employee of
such lending institution; (3) a real estate broker or salesman whose
relationship to the declarant consists solely of [rendering services
described in subdivision (6) of] engaging in the real estate business, as
defined in section 20-311, as amended by this act, and other customary
services; or (4) a person whose sole involvement in the disposition of a
condominium unit occurs subsequent to the date of the act or omission
out of which any liability under subsection (a) of this section arises.
Sec. 43. Subsection (a) of section 47-42f of the general statutes is
repealed and the following is substituted in lieu thereof (Effective April
1, 2024):
(a) As used in this section: (1) "Residential real property" has the same Substitute House Bill No. 6769
Public Act No. 23-84 60 of 60
meaning as provided in section [20-325c] 20-311, as amended by this act,
but does not include property owned by the state or any political
subdivision thereof; (2) "benefited property" or "property that benefits"
includes residential real property burdened by an easement or right-of-
way, the owner of which residential real property uses such easement
or right-of-way; and (3) "easement" or "right-of-way" means a private
appurtenant easement or right-of-way.
Sec. 44. Sections 20-329i and 20-324j of the general statutes are
repealed. (Effective April 1, 2024)