Sec. 47-96. Fees. Determination of value of securities. (a) The fee for filing an
application for a permit for the sale of real estate syndicate securities or renewal thereof
is one hundred dollars plus one-tenth of one per cent of the aggregate value of the
certificates of interest sought to be issued in this state up to a maximum aggregate fee
of one thousand five hundred dollars. For the purpose of determining the fees fixed in
this section, the value of the real estate syndicate securities shall be the price at which
they are proposed to be sold, including obligations to make future payments, or the value
as alleged in the application, or the actual value, as determined by the commission, of
the consideration, if other than money, to be received therefor, whichever is greater.
(b) The fee for filing any application for a permit to issue real estate syndicate
securities evidencing any change in the rights, preferences, privileges or restrictions on
outstanding real estate syndicate securities is one hundred dollars. Where such issuance
will result in an increase in the aggregate face amount of the real estate syndicate securities, the fee shall be in accordance with subdivision (a).
(P.A. 73-593, S. 21, 35.)
Sec. 47-97. Qualification of securities no endorsement by commission; representations to prospective purchasers; permit to state issuance is permissive only.
(a) Neither the fact that an application for qualification under this chapter has been filed
nor the fact that such qualification has become effective constitutes a finding by the
commission that any document filed under this chapter is true, complete or not misleading. Neither any such fact nor the fact that an exemption is available for a real estate
syndicate security or a transaction means that the commission has passed in any way
upon the merits or qualifications of, or recommended or given approval to, any person,
real estate syndicate security or transaction.
(b) No person shall make or cause to be made to any prospective purchaser any
representation inconsistent with subdivision (a) of this section.
(c) Every permit shall recite in bold type that the issuance thereof is permissive only
and does not constitute a recommendation or endorsement of the real estate syndicate
securities to be issued.
(P.A. 73-593, S. 10, 13, 35.)
Sec. 47-98. Sale of unqualified real estate syndicate securities prohibited. No
issuer shall offer or sell to the public in this state any real estate syndicate security unless
such sale has been qualified under section 47-92 or unless such real estate syndicate
security or transaction is exempted under section 47-101. No issuer shall offer or sell
in this state any real estate syndicate security issued by it in connection with any change
in the rights, preferences, privileges or restrictions of or on an outstanding real estate
syndicate security unless such sale has been qualified under section 47-92 or unless
such real estate syndicate security or transaction is exempted under section 47-101.
(P.A. 73-593, S. 5, 35.)
Sec. 47-99. Advertisement of securities; prior filing; hearings; media responsibility. (a) No person shall publish any advertisement in this state concerning any real
estate syndicate security sold or offered for sale in this state unless a true copy of the
advertisement has first been filed in the office of the commission at least three business
days prior to the publication or such shorter period as the commission may by regulation
or order allow.
(b) No person shall publish any advertisement concerning any real estate syndicate
security in this state after the commission finds that the advertisement contains any
statement that is false or misleading or omits to make any statement necessary in order
to make the statements made in the light of the circumstances under which they were
made not misleading and so notifies the person in writing. After such notification is
issued, the person or persons named therein may, within twenty days after receipt of
the notification, file a written request for a hearing. Said hearing shall be held within
the time period and in accordance with the procedures set forth for hearings contained
in section 20-321.
(c) The owner, publisher, licensee or operator of any newspaper, magazine, visual
or sound radio broadcasting station or network of stations or the agents or employees
of any such owner, publisher, licensee or operator of such newspaper, magazine, station
or network of stations shall not be liable under this chapter for any advertising regarding
any real estate syndicate security sold or offered for sale in this state carried in any such
newspaper or magazine or by any such visual or sound radio broadcasting station or
network of stations nor shall any of them be liable under said chapter for the contents
of any such advertisement.
(P.A. 73-593, S. 23, 24, 34, 35.)
See Sec. 47-103(b) re conduct of hearings.
Sec. 47-100. Sale does not require licensure as real estate salesperson or broker. The sale of real estate syndicate securities shall not be an act requiring licensure
as a real estate salesperson or broker as defined in section 20-311.
(P.A. 73-593, S. 33, 35; P.A. 96-200, S. 25.)
History: P.A. 96-200 substituted "salesperson" for "salesman".
Sec. 47-101. Exceptions. (a) The provisions of this chapter do not apply to any of
the following: (i) Any real estate syndicate securities or participation in an oil, gas, or
mining title or lease; (ii) any shares, memberships or certificates of interest or participation in a mutual water company; (iii) any share, membership or certificate of interest in
a real estate investment trust subject to the provisions of sections 20-329o to 20-329bb,
inclusive; (iv) any real estate syndicate security for which a registration has been filed
under the Federal Securities Act of 1933; (v) any membership interest or other right or
privilege of purchasers created in or in connection with any of the forms of development
referred to in the Condominium Act of 1976, as set forth in sections 47-68a to 47-90c,
inclusive.
(b) Any offer or sale of a real estate syndicate security in a transaction not involving
a public offering within the meaning of Section 4(2) of the Federal Securities Act of
1933, presently constituted as Section 77(d)(2) of Title 15 of the United States Code is
exempt from the provisions of this chapter, provided it shall be a conclusive presumption
that any such offer or sale to less than eighteen persons shall be a private offering.
(c) There shall be exempted from the provisions of this chapter any other transaction
which the commission by regulation exempts as not being comprehended within the
purposes of this chapter and the qualification of which it finds is not necessary or appropriate in the public interest or for the protection of investors.
(P.A. 73-593, S. 2-4, 35; P.A. 79-602, S. 131.)
History: P.A. 79-602 referred to "Condominium Act of 1976" rather than to "Unit Ownership Act" in Subsec. (a).
Sec. 47-102. Waiver of chapter void. Exception. Any condition, stipulation or
provision purporting to bind any person acquiring any real estate syndicate security to
waive compliance with any provisions of this chapter or any regulation or order hereunder is void unless written approval thereof by the commission is obtained.
(P.A. 73-593, S. 30, 35.)
Sec. 47-103. Real Estate Commission to establish regulations. Hearings. (a)
The commission may establish such regulations as are reasonably necessary to carry
out the intent and purpose of the provisions of this chapter. Such regulations shall be
adopted, amended, or repealed in accordance with the provisions of chapter 54 and
chapter 392.
(b) All hearings initiated under the provisions of this chapter shall be conducted in
accordance with the provisions of section 20-321 and other applicable provisions of
chapter 392.
(P.A. 73-593, S. 22, 27, 35.)
Sec. 47-104. Required form of sales contracts. The commission may by regulation require as a condition of qualification that any real estate syndicate securities authorized under section 47-92 be sold only on a form of subscription or sale contract approved
by the commission, and that a signed or conformed copy of each contract be preserved
for such period as the commission may find reasonable and necessary to specify by
regulation.
(P.A. 73-593, S. 15, 35.)
Sec. 47-105. Required records and reports. Examination of records; examination costs. (a) Every issuer qualifying real estate syndicate securities for sale in this
state shall at all times keep and maintain a complete set of books, records and accounts
of such sales and the disposition of the proceeds thereof, and shall thereafter, at such
times as are required by the commission, make and file in the office of the commission
a report, setting forth the interests sold by it under such qualification, the proceeds
derived therefrom and the disposition thereof.
(b) The commission shall have the right to examine such records at any time and,
when such examination requires out-of-state travel, the issuer shall pay the cost of such
examination at the discretion of and as determined by the commission.
(P.A. 73-593, S. 14, 35.)
Sec. 47-106. Penalty for false statement. No person shall wilfully make any untrue statement of a material fact in any application, notice, or report filed with the commission under this chapter, or wilfully omit to state in any such application, notice or
report any material fact which is required to be stated therein. Any person violating this
section shall be subject to the penalty provided in section 20-324.
(P.A. 73-593, S. 12, 35.)
Sec. 47-107. Investigations by commission; powers. (a) The commission in its
discretion may make such public or private investigations within or outside of this state
as it deems necessary to determine whether any person has violated or is about to violate
any provision of this chapter or any regulation or order hereunder or to aid in the enforcement of this chapter or in the prescribing of regulations and forms hereunder.
(b) The commission in its discretion may make such examinations or investigations
as it deems necessary to determine whether any person or company has violated any
provisions of this chapter, or any regulation, order or permit hereunder. For the purpose
of any examination or investigation under this chapter, the chairman or any officer
designated by him may administer oaths and affirmation, subpoena witnesses, compel
their attendance, audit books, accounts and records, take evidence and require the production of any books, papers, correspondence, memoranda, agreements or other documents or records which the commission deems relevant or material to the inquiry.
(P.A. 73-593, S. 19, 26, 35.)
Sec. 47-108. Appointment of attorney for service. Every applicant for qualification of real estate syndicate securities under this chapter shall file with the chairman of
the commission, in such form as it by regulation prescribes, an irrevocable consent
appointing the chairman of the commission or his successor in office to be his attorney
to receive service of any lawful process in any noncriminal suit, action or proceeding
against him or his successor, executor or administrator, which arises under this chapter
or any regulation or order promulgated hereunder after the consent has been filed, with
the same force and validity as if served personally on the person filing the consent.
Service may be made by leaving a copy of the process in the office of the commission
but it is not effective unless the plaintiff, who may be the commission in a suit, action
or proceeding instituted by it, forthwith sends notice of the service and a copy of the
process by registered or certified mail to the defendant or respondent at his last address
on file with the commission, and the plaintiff's affidavit of compliance with this section
is filed in the case on or before the return day of the process, if any, or within such
further time as the court allows.
(P.A. 73-593, S. 11, 35; P.A. 75-567, S. 73, 80; P.A. 81-472, S. 86, 159.)
History: P.A. 75-567 substituted "regulation" for "rule"; P.A. 81-472 made technical changes.
Sec. 47-109. Actions, limitation of time, prerequisite. (a) No action shall be
maintained to enforce any liability created under this chapter, unless brought before
the expiration of two years after the act or transaction constituting the violation or the
expiration of one year after the discovery by the plaintiff of the facts constituting the
violation, whichever shall first expire.
(b) No purchaser of a real estate syndicate security may commence an action under
this chapter, if, before suit is commenced, such buyer shall have received a written offer
(1) stating the respect in which liability under section 47-98 or 47-106 may have arisen;
(2) offering to repurchase the real estate syndicate security for a cash price payable upon
delivery of the real estate syndicate security equal to the consideration paid, with interest
at the legal rate from the date of payment, less the amount of any income received on
the real estate syndicate security, or, if the purchaser no longer owns the real estate
syndicate security, offering to pay the purchaser upon the acceptance of the offer an
amount in cash equal to the damages computed in accordance with section 47-110 provided such offer may be accepted by the purchaser at any time within a specified period
of not less than thirty days after the date of receipt thereof; and (3) setting forth the
provisions of this subdivision, and such purchaser shall have failed to accept such offer
in writing within the specified period after receipt thereof.
(P.A. 73-593, S. 32, 35; P.A. 74-338, S. 44, 94.)
History: P.A. 74-338 made technical correction in Subsec. (b), replacing reference to "this section" with reference to
Sec. 47-110.