Connecticut 2025 Regular Session

Connecticut House Bill HB05572 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
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3		-	LCO 1 of 3
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5		-	General Assembly Substitute Bill No. 5572
	4	+	LCO No. 5126 1 of 4
	5	+
	6	+	General Assembly Committee Bill No. 5572
6	7		January Session, 2025
	8	+	LCO No. 5126
	9	+
	10	+
	11	+	Referred to Committee on GENERAL LAW
	12	+
	13	+
	14	+	Introduced by:
	15	+	(GL)
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10	19		AN ACT CONCERNING REAL ESTATE WHOLESALERS AND REAL
11	20		ESTATE WHOLESALE CONTRACTS.
12	21		Be it enacted by the Senate and House of Representatives in General
13	22		Assembly convened:
14	23
15	24		Section 1. (NEW) (Effective October 1, 2025) (a) As used in this section: 1
16	25		(1) "Commissioner" means the Commissioner of Consumer 2
17	26		Protection; 3
18	27		(2) "Department" means the Department of Consumer Protection; 4
19	28		(3) "Person" has the same meaning as provided in section 20-311 of 5
20	29		the general statutes; 6
21	30		(4) "Real estate wholesaler" (A) means a person who enters into a real 7
22	31		estate wholesale contract for the purpose of facilitating or orchestrating 8
23	32		the sale of a seller's real property to a third party, and (B) does not 9
24		-	include a real estate licensee engaged in the real estate business, as ~~such~~ 10
	33	+	include a real estate licensee engaged in the real estate business, as said 10
25	34		terms are defined in section 20-311 of the general statutes; and 11
26	35		(5) "Real estate wholesale contract" means an agreement between a 12
27	36		real estate wholesaler and the seller of real property that requires the 13
	37	+	Committee Bill No. 5572
	38	+
	39	+
	40	+	LCO No. 5126 2 of 4
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28	42		real estate wholesaler to, for compensation and without assuming 14
29	43		possession of the real property, facilitate or orchestrate the sale of such 15
30		-	real property to a third party. 16 Substitute Bill No. 5572
31		-
32		-
33		-	LCO 2 of 3
34		-
	44	+	real property to a third party. 16
35	45		(b) (1) Except as provided in subdivision (2) of this subsection, no 17
36	46		person shall act as a real estate wholesaler in this state unless the 18
37	47		Department of Consumer Protection has issued a real estate wholesaler 19
38		-	license to such person pursuant to this subdivision. A person ~~seeking a~~ 20
39		-	real estate wholesaler license shall submit an application to the 21
	48	+	license to such person pursuant to this subdivision. A person who 20
	49	+	desires a real estate wholesaler license shall submit an application to the 21
40	50		department in a form and manner prescribed by the Commissioner of 22
41	51		Consumer Protection. Each initial license application submitted 23
42	52		pursuant to this subdivision shall be accompanied by a nonrefundable 24
43	53		application fee in the amount of two hundred eighty-five dollars. Each 25
44	54		real estate wholesaler license issued pursuant to this subdivision shall 26
45	55		be valid for a period not to exceed one year and may be renewed for 27
46	56		successive one-year periods by submitting a license renewal application 28
47	57		to the department in a form and manner prescribed by the 29
48	58		commissioner. Each license renewal application submitted pursuant to 30
49	59		this subdivision shall be accompanied by a nonrefundable renewal fee 31
50	60		in the amount of two hundred eighty-five dollars. 32
51	61		(2) No real estate wholesaler shall be required to obtain a real estate 33
52	62		wholesaler license from the department under subdivision (1) of this 34
53	63		subsection for any calendar year in which such real estate wholesaler 35
54	64		enters into not more than one real estate wholesale contract. 36
55	65		(c) (1) Each real estate wholesale contract shall, at a minimum, 37
56	66		include: 38
57	67		(A) The name of the real estate wholesaler; 39
58	68		(B) The license number of the real estate wholesaler license issued to 40
59	69		the real estate wholesaler pursuant to subdivision (1) of subsection (b) 41
60	70		of this section, if any; 42
61	71		(C) A provision providing (i) the seller with a ten-day period within 43
	72	+	Committee Bill No. 5572
	73	+
	74	+
	75	+	LCO No. 5126 3 of 4
	76	+
62	77		which the seller may, at the seller's expense, have an attorney review the 44
63	78		terms of such real estate wholesale contract, and (ii) that the seller may 45
64	79		cancel such real estate wholesale contract during such ten-day period 46
65		-	without incurring any penalty or obligation; and 47 Substitute Bill No. 5572
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67		-
68		-	LCO 3 of 3
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	80	+	without incurring any penalty or obligation; and 47
70	81		(D) The following statement, in not less than sixteen-point type, at the 48
71	82		top of the first page of such real estate wholesale contract: 49
72	83		"ENGAGING WITH A WHOLESALER TO SELL A PROPERTY IS A 50
73	84		SERIOUS DECISION AND PROSPECTIVE SELLERS ARE ADVISED 51
74	85		TO CONSULT AN ATTORNEY OR LICENSED REAL ESTATE 52
75	86		PROFESSIONAL TO ENSURE THEY ARE RECEIVING THE BEST 53
76	87		PRICE AND CONTRACT TERMS POSSIBLE .". 54
77	88		(2) No real estate wholesale contract shall provide for a closing date 55
78	89		that is more than seventy days after the date on which all parties to such 56
79	90		contract executed such contract. The parties to a real estate wholesale 57
80	91		contract may agree to extend such seventy-day period, provided such 58
81	92		extension is made in writing and signed by all parties to such contract. 59
82	93		In the absence of any such extension, the real estate wholesale contract 60
83	94		shall automatically terminate upon expiration of such seventy-day 61
84	95		period. 62
85	96		(d) The Commissioner of Consumer Protection may adopt 63
86	97		regulations, in accordance with the provisions of chapter 54 of the 64
87	98		general statutes, to implement the provisions of this section. 65
88		-	(e) Any violation of the provisions of ~~subsections (b) and (c) of this~~ 66
89		-	~~section shall be deemed an~~ unfair or deceptive trade practice under 67
90		-	~~subsection (a) of section 42-110b~~ of the general statutes. 68
	99	+	(e) Any violation of the provisions of this section shall be deemed an 66
	100	+	unfair or deceptive trade practice under subsection (a) of section 42-110b 67
	101	+	of the general statutes. 68
91	102		This act shall take effect as follows and shall amend the following
92	103		sections:
93	104
94	105		Section 1 October 1, 2025 New section
95	106
96		-	Statement of Legislative Commissioners:
97		-	In Subsec. (b)(1), "who desires" was changed to "seeking" for consistency
98		-	with standard drafting conventions; and in Subsec. (e), "subsections (b)
99		-	and (c) of" was added before "this section" for consistency with standard
100		-	drafting conventions.
	107	+	Committee Bill No. 5572
101	108
102		-	GL Joint Favorable Subst. -LCO
	109	+
	110	+	LCO No. 5126 4 of 4
	111	+
	112	+	Statement of Purpose:
	113	+	To provide for (1) the licensing and regulation of real estate wholesalers,
	114	+	and (2) the regulation of real estate wholesale contracts.
	115	+
	116	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
	117	+	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
	118	+	underlined.]
	119	+
	120	+	Co-Sponsors: REP. ZULLO, 99th Dist.; SEN. CICARELLA, 34th Dist.
	121	+
	122	+	H.B. 5572
	123	+
103	124