STATE OF CONNECTICUT

STATE OF

CONNECTICUT

REAL ESTATE LAWS AND REGULATIONS

CONCERNING THE CONDUCT OF

APPRAISERS, BROKERS AND SALESPERSONS

Prepared for the Department of Consumer Protection

and the Connecticut Real Estate Commission

Hartford, Connecticut

Prepared by the Center for Real Estate and Urban Economic Studies

University of Connecticut

Storrs, CT

October 2017

CONNECTICUT DEPARTMENT OF CONSUMER PROTECTION

OCCUPATIONAL AND PROFESSIONAL LICENSING DIVISION

Dannel P. Malloy, Governor

Michelle H. Seagull, Commissioner

Department of Consumer Protection

Richard E. Maloney

Richard M. Hurlburt

William Zenga

Kelly Harvey

Linda Kieft-Robitaille

Director Trade Practices Division

Director Occupational and Professional Licensing Division

Supervising Special Investigator

Real Estate Examiner

Real Estate Examiner

Phone: 860-713-6150

Fax: 860-713-7230

Email: realestate@

Internet Address:

Connecticut Real Estate Commission

2nd District

2nd District

5th District

3rd District

1st District

4th District

1st District

Joseph B. Castonguay

Linda C. Burnham

Lana K. Ogrodnik

Theodore F. Ells, Esq.

Joseph H. Kronen

Morag Vance

Amy Bergquist

Acting Chair, Broker

Salesperson

Broker

Public Member

Public Member

Public Member

Broker

Robin Washbond

Real Estate Commission Secretary

Connecticut Real Estate Appraisal Commission

John J. Galvin Jr.

Gerald Rasmussen

Shawna M. Baron

Linda M. Sepso

Norris A. Hawkins

Certified General Appraiser

Certified General Appraiser

Certified Residential Appraiser

Certified Residential Appraiser

Public Member

This compilation of real estate laws and regulations relating to the licensure and conduct of appraisers, brokers,

and salespersons is designed to be used as a handy reference source. It is not a substitute for the official

Connecticut General Statutes and Regulations, and may inadvertently contain errors or omissions.

Real Estate Laws and Regulations Concerning the Conduct of Real Estate Appraisers, Brokers and Salespersons

REAL ESTATE LICENSING LAW

Sec. 20-311.

Definitions¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­............. 1

Sec. 20-311a. Real Estate Commission¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­ 1

Sec. 20-311b. Duties of commission¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­ 2

Sec. 20-311d. Bond for chairperson¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­ 2

Sec. 20-311e. Deposit of fees¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­..¡­¡­¡­¡­ 2

Sec. 20-311f.

Arbitration of disputes between brokers or salespersons¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­. 2

Sec. 20-312.

Licensing¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­........ 2

Sec. 20-312a. Liability of brokers for salespersons affiliated as independent contractors¡­¡­¡­¡­¡­¡­.. 3

Sec. 20-312b. Licensed real estate broker or real estate salesperson not deemed ¡°employee¡±¡­¡­¡­ 3

Sec. 20-313.

Application for license¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­.¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­ 4

Sec. 20-314.

License qualifications. Examinations. Renewals. Fees. Reinstatement. Hearings¡­¡­¡­ 4

Sec. 20-314a. Regulations concerning approval of schools, courses, programs and advertising.¡­.¡­ 5

Sec. 20-314b. Validity of license¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­..¡­¡­¡­ 5

Sec. 20-314c. Real estate student intern program. Application.¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­.¡­. 5

Sec. 20-316.

Grounds for refusal of license¡­¡­¡­..¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­..¡­¡­¡­¡­¡­. 6

Sec. 20-317.

Persons licensed in another state as a real estate broker or salesperson¡­¡­¡­¡­¡­¡­¡­ 6

Sec. 20-318.

Certificate¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­ 6

Sec. 20-319.

Renewal. Continuing education requirements. Regulations¡­¡­¡­¡­¡­¡­¡­.¡­¡­¡­¡­¡­¡­¡­. 6

Sec. 20-319a. Change of salesperson¡¯s employment or affiliation. Fees¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­ 7

Sec. 20-320.

Suspension or revocation of licenses. Fines¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­.¡­¡­¡­¡­¡­¡­¡­ 7

Sec. 20-320a. Paid referral of any buyer of real property to an attorney, mortgage broker¡­¡­¡­¡­.. 8

Sec. 20-320b. Prohibition against influencing real estate appraisals. Violation, penalty¡­¡­¡­¡­¡­¡­¡­ 8

Sec. 20-321.

Notice and hearing¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­ 8

Sec. 20-322.

Appeal¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­..¡­¡­¡­¡­¡­. 8

Sec. 20-323.

Revocation of license upon conviction of crime¡­¡­¡­¡­¡­¡­.¡­¡­¡­¡­¡­¡­..¡­¡­¡­.¡­.¡­¡­¡­¡­ 8

Sec. 20-324.

Misrepresentation; penalty¡­¡­¡­¡­¡­¡­¡­.¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­.¡­.¡­¡­¡­¡­ 9

Sec. 20-324a. Real Estate Guaranty Fund¡­¡­¡­¡­¡­¡­¡­.¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­..¡­¡­¡­¡­¡­¡­¡­.¡­.¡­¡­¡­¡­¡­ 9

Sec. 20-324b. Fee payable to fund¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­.¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­..¡­¡­.¡­¡­¡­¡­¡­ 9

Sec. 20-324c. Level of guaranty fund. Credits to guaranty fund and General Fund¡­¡­.¡­.¡­.¡­¡­¡­¡­¡­ 9

Sec. 20-324d. Limitation of actions¡­¡­¡­¡­¡­¡­¡­¡­¡­.¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­.¡­.¡­¡­¡­¡­ 9

Sec. 20-324e. Procedure¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­.¡­¡­¡­¡­¡­¡­¡­¡­..¡­¡­¡­¡­¡­¡­.¡­.¡­¡­.¡­¡­¡­¡­ 9

Sec. 20-324f.

Penalty for false or untrue claim¡­¡­¡­¡­¡­¡­..¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­.¡­¡­¡­¡­¡­.¡­..¡­¡­¡­¡­¡­¡­ 10

Sec. 20-324g. Procedure for commission¡­¡­¡­¡­¡­¡­¡­¡­¡­.¡­¡­¡­¡­¡­¡­¡­¡­¡­.¡­¡­¡­¡­¡­¡­.¡­¡­..¡­¡­¡­¡­¡­¡­ 10

Sec. 20-324h. Payment from guaranty fund¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­.¡­¡­¡­¡­¡­¡­..¡­¡­¡­¡­¡­.¡­¡­¡­..¡­¡­¡­¡­¡­¡­ 10

Sec. 20-324i.

Regulations¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­..¡­¡­¡­¡­..¡­¡­¡­¡­¡­¡­ 11

Sec. 20-324j.

Appeal of commission decision, order or regulation¡­¡­¡­¡­¡­..¡­¡­¡­..¡­¡­¡­..¡­¡­¡­¡­¡­¡­ 11

Sec. 20-324k. Brokers to maintain escrow or trust account for certain moneys held¡­¡­¡­¡­¡­¡­¡­¡­¡­. 11

Sec. 20-325.

Engaging in business without license¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­ 11

Sec. 20-325a. Actions to recover commissions arising out of real estate transactions.¡­¡­¡­¡­¡­¡­¡­¡­ 11

Sec. 20-325b. Certain real estate agreements to contain notice regarding commissions¡­¡­¡­¡­¡­¡­¡­ 14

Sec. 20-325c. Real estate broker or salesperson acting as mortgage broker¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­ 14

Sec. 20-325d. Disclosure of representation¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­..¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­ 15

Sec. 20-325e. Hearings on real property claims for liens. Foreclosures. Judicial intervention¡­¡­¡­¡­. 15

Sec. 20-325f.

Broker subagency. Written consent of client required. Vicarious liability of principal.. 16

Real Estate Laws and Regulations Concerning the Conduct of Real Estate Appraisers, Brokers and Salespersons

Sec. 20-325g.

Sec. 20-325h.

Sec. 20-325i.

Sec. 20-325j.

Sec. 20-325k.

Sec. 20-325l.

Sec. 20-325m.

Sec. 20-326.

Sec. 20-327a.

Sec. 20-327b.

Sec. 20-327c.

Sec. 20-327d.

Sec. 20-327e.

Sec. 20-327f.

Sec. 20-327g.

Sec. 20-327h.

Sec. 20-328.

Sec. 20-329.

Dual agency consent agreements. Conclusive presumption of informed consent¡­¡­. 16

Prohibitions on use or disclosure of confidential information¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­.. 17

Designated buyer agents and seller agents¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­. 17

Regulations re appointment of designated buyer or seller agent¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­ 18

Commercial real estate transactions. Notice of commission rights.¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­.. 18

Cooperation with out-of-state brokers and salespersons regarding transactions¡­¡­¡­ 19

Real estate brokers to retain certain real estate transaction records¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­ 19

Report to Governor. ¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­ 20

Periodic publication of information and material. ¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­ 20

Residential condition reports. Exemption. Regulations¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­ 20

Credit due purchaser at closing if report not furnished¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­ 22

No new implied or express warranties created¡­¡­¡­¡­¡­¡­¡­.¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­.. 22

Sellers representation construed to extend to his actual knowledge only¡­¡­¡­¡­¡­¡­¡­ 22

Notice re existence of hazardous waste facilities¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­.. 22

Notice of list of properties upon which hunting or shooting sports take place¡­¡­¡­¡­¡­ 22

Notice re housing discrimination and fair housing laws¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­. 23

Regulations¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­..¡­¡­¡­. 23

Exceptions concerning the licensure of brokers and salespersons¡­¡­¡­¡­¡­¡­¡­..¡­¡­¡­¡­. 23

INTERSTATE LAND SALES

Sec. 20-329a. Advertising and sale in this state of property in another state: Definitions¡­¡­¡­..¡­¡­¡­ 24

Sec. 20-329b. Excepted activities. Filing fees¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­ 24

Sec. 20-329c. Secretary as agent for service of process; bond; license required¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­.. 25

Sec. 20-329d. Submission of documents, promotional plan and advertising materials to commission. 25

Sec. 20-329e. Investigation by department¡­¡­¡­¡­¡­..¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­.. 26

Sec. 20-329f. Issuance of license. Fees¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­.. 26

Sec. 20-329g. Reference to commission or department prohibited¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­ 26

Sec. 20-329h. Rights of purchasers¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­ 26

Sec. 20-329i. Penalty¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­.¡­¡­¡­¡­¡­. 27

Sec. 20-329j. Commission members may not participate¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­ 27

Sec. 20-329k. Non-liability of advertising media¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­.¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­.. 27

Sec. 20-329l. Appeal¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­..¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­. 27

Sec. 20-329m. Regulations¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­. 27

Sec. 20-329n. Deposits of purchasers and lessees to be held in escrow¡­¡­¡­¡­¡­..¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­ 27

Sec. 20-329o. Real property securities dealers. Certain sales not deemed a sale to the public¡­¡­¡­..... 28

Sec. 20-329p. License and endorsement requirements¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­.¡­¡­¡­¡­¡­¡­.. 29

Sec. 20-329q. Statement to purchaser¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­.... 29

Sec. 20-329r. Appraisal of real property¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­.¡­¡­¡­¡­¡­¡­¡­¡­ 29

Sec. 20-329s. Filing and approval of materials to be used by dealer¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­.¡­¡­¡­¡­¡­ 29

Sec. 20-329t. Annual financial report¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­.¡­¡­¡­¡­¡­¡­.. 30

Sec. 20-329u. Desist order for violation. Appeal¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­.¡­¡­¡­¡­¡­.. 30

Sec. 20-329v. Permit to sell real property security required. Application¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­.¡­¡­¡­¡­¡­.. 30

Sec. 20-329w. Issuance or denial of permit. Limitation of commission¡¯s authority. Hearing¡­¡­¡­¡­¡­¡­.. 30

Sec. 20-329x. Prohibited acts. Penalty¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­.¡­¡­¡­¡­¡­¡­. 31

Sec. 20-329y. Civil action for injury from transaction¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­.¡­¡­¡­¡­¡­¡­ 31

Sec. 20-329z. Regulations¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­..¡­¡­¡­¡­¡­¡­¡­¡­¡­ 31

Sec. 20-329aa. Appeal¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­.¡­¡­¡­¡­¡­¡­ 31

Sec. 20-329bb. Exemptions¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­.¡­¡­¡­¡­¡­ 31

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