OLR Bill Analysis

sSB 1100 (File 59, as amended by House “A” and Senate “A”)*

AN ACT CONCERNING OFFERS TO PURCHASE SUBDIVISION LOTS.

SUMMARY:

Under current law, anyone who “sells or offers for sale” any lot subdivided based on a planning commission's conditional approval of the subdivision before receiving the final approval is subject to a fine of up to $ 500 for each lot sold or offered for sale. The bill instead subjects anyone who “transfers title” to such a lot before receiving final approval to a $ 1,000 fine for each title transferred. Thus, it permits a person to sell or offer for sale such a lot, but not close on the sale until receiving final approval.

The bill also gives the buyer of such a conditionally approved lot a limited right to rescind the sale contract within three days of receiving notice of the planning commission's final approval. The buyer may rescind the contract if the final approval includes new amendments or conditions that he or she finds unacceptable. Both the final approval and the rescission must be in writing.

The bill specifies that it does not authorize marketing a lot before conditional approval is granted or renewed for it.

*House Amendment “A” requires the commission's final subdivision approval notice and buyer's rescission to be in writing.

*Senate Amendment “A” replaces provisions limiting the legal effect of selling or offering for sale a conditionally approved subdivision lot with provisions giving a buyer a limited right to rescind a sale contract for such a lot. It eliminates the penalty for selling such a lot and imposes a penalty for transferring title before receiving final subdivision approval.

EFFECTIVE DATE: July 1, 2007

COMMITTEE ACTION

Insurance and Real Estate Committee

Joint Favorable

Planning and Development Committee

Joint Favorable

Judiciary Committee

Joint Favorable