Connecticut Seal

General Assembly

 

Raised Bill No. 5164

February Session, 2008

 

LCO No. 1553

 

*01553_______BA_*

Referred to Committee on Banks

 

Introduced by:

 

(BA)

 

AN ACT CONCERNING BUYER PROTECTION IN FORECLOSURE BY SALES.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Section 49-26 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2008):

(a) When a sale has been made pursuant to a judgment therefor and ratified by the court, a conveyance of the property sold shall be executed by the person appointed to make the sale, which conveyance shall vest in the purchaser the same estate that would have vested in the mortgagee or lienholder if the mortgage or lien had been foreclosed by strict foreclosure, and to this extent such conveyance shall be valid against all parties to the cause and their privies, but against no other persons. The court, at the time of or after ratification of the sale, may order possession of the property sold to be delivered to the purchaser and may issue an execution of ejectment after the time for appeal of the ratification of the sale has expired.

(b) If the property to be delivered to the purchaser, pursuant to a ratified judgment of sale, suffers intentional property damage, including, but not limited to, removal of fixtures or personal property from the property sold, in the time period between the sale of the property and prior to the date of possession by the purchaser, the purchaser may appeal to the court to reopen the court's ratification of the sale or to rescind or modify the purchaser's agreement to purchase. If the court finds that the intentional property damage was not caused by the purchaser and diminishes the value of the property, the court may rescind its ratification of the sale or permit the purchaser to rescind or modify its agreement to purchase.

This act shall take effect as follows and shall amend the following sections:

Section 1

October 1, 2008

49-26

Statement of Purpose:

To create a statutory cause of action and remedy for purchasers of foreclosed property where the property value is diminished through intentional damage during the period of time between the sale of the property and possession by the purchaser.

[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]