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General Assembly Substitute Bill No. 5572
January Session, 2025
AN ACT CONCERNING REAL ESTATE WHOLESALERS AND REAL
ESTATE WHOLESALE CONTRACTS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. (NEW) (Effective October 1, 2025) (a) As used in this section: 1
(1) "Commissioner" means the Commissioner of Consumer 2
Protection; 3
(2) "Department" means the Department of Consumer Protection; 4
(3) "Person" has the same meaning as provided in section 20-311 of 5
the general statutes; 6
(4) "Real estate wholesaler" (A) means a person who enters into a real 7
estate wholesale contract for the purpose of facilitating or orchestrating 8
the sale of a seller's real property to a third party, and (B) does not 9
include a real estate licensee engaged in the real estate business, as such 10
terms are defined in section 20-311 of the general statutes; and 11
(5) "Real estate wholesale contract" means an agreement between a 12
real estate wholesaler and the seller of real property that requires the 13
real estate wholesaler to, for compensation and without assuming 14
possession of the real property, facilitate or orchestrate the sale of such 15
real property to a third party. 16 Substitute Bill No. 5572
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(b) (1) Except as provided in subdivision (2) of this subsection, no 17
person shall act as a real estate wholesaler in this state unless the 18
Department of Consumer Protection has issued a real estate wholesaler 19
license to such person pursuant to this subdivision. A person seeking a 20
real estate wholesaler license shall submit an application to the 21
department in a form and manner prescribed by the Commissioner of 22
Consumer Protection. Each initial license application submitted 23
pursuant to this subdivision shall be accompanied by a nonrefundable 24
application fee in the amount of two hundred eighty-five dollars. Each 25
real estate wholesaler license issued pursuant to this subdivision shall 26
be valid for a period not to exceed one year and may be renewed for 27
successive one-year periods by submitting a license renewal application 28
to the department in a form and manner prescribed by the 29
commissioner. Each license renewal application submitted pursuant to 30
this subdivision shall be accompanied by a nonrefundable renewal fee 31
in the amount of two hundred eighty-five dollars. 32
(2) No real estate wholesaler shall be required to obtain a real estate 33
wholesaler license from the department under subdivision (1) of this 34
subsection for any calendar year in which such real estate wholesaler 35
enters into not more than one real estate wholesale contract. 36
(c) (1) Each real estate wholesale contract shall, at a minimum, 37
include: 38
(A) The name of the real estate wholesaler; 39
(B) The license number of the real estate wholesaler license issued to 40
the real estate wholesaler pursuant to subdivision (1) of subsection (b) 41
of this section, if any; 42
(C) A provision providing (i) the seller with a ten-day period within 43
which the seller may, at the seller's expense, have an attorney review the 44
terms of such real estate wholesale contract, and (ii) that the seller may 45
cancel such real estate wholesale contract during such ten-day period 46
without incurring any penalty or obligation; and 47 Substitute Bill No. 5572
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(D) The following statement, in not less than sixteen-point type, at the 48
top of the first page of such real estate wholesale contract: 49
"ENGAGING WITH A WHOLESALER TO SELL A PROPERTY IS A 50
SERIOUS DECISION AND PROSPECTIVE SELLERS ARE ADVISED 51
TO CONSULT AN ATTORNEY OR LICENSED REAL ESTATE 52
PROFESSIONAL TO ENSURE THEY ARE RECEIVING THE BEST 53
PRICE AND CONTRACT TERMS POSSIBLE.". 54
(2) No real estate wholesale contract shall provide for a closing date 55
that is more than seventy days after the date on which all parties to such 56
contract executed such contract. The parties to a real estate wholesale 57
contract may agree to extend such seventy-day period, provided such 58
extension is made in writing and signed by all parties to such contract. 59
In the absence of any such extension, the real estate wholesale contract 60
shall automatically terminate upon expiration of such seventy-day 61
period. 62
(d) The Commissioner of Consumer Protection may adopt 63
regulations, in accordance with the provisions of chapter 54 of the 64
general statutes, to implement the provisions of this section. 65
(e) Any violation of the provisions of subsections (b) and (c) of this 66
section shall be deemed an unfair or deceptive trade practice under 67
subsection (a) of section 42-110b of the general statutes. 68
This act shall take effect as follows and shall amend the following
sections:
Section 1 October 1, 2025 New section
Statement of Legislative Commissioners:
In Subsec. (b)(1), "who desires" was changed to "seeking" for consistency
with standard drafting conventions; and in Subsec. (e), "subsections (b)
and (c) of" was added before "this section" for consistency with standard
drafting conventions.
GL Joint Favorable Subst. -LCO