Substitute Senate Bill No. 240
Substitute Senate Bill No. 240
PUBLIC ACT NO. 98-10
AN ACT CONCERNING TECHNICAL REVISIONS TO CHAPTER
392 OF THE GENERAL STATUTES CONCERNING REAL ESTATE
BROKERS AND SALESPERSONS, TO CERTAIN STATUTES
CONCERNING THE CONNECTICUT REAL ESTATE COMMISSION
AND THE CONNECTICUT REAL ESTATE APPRAISAL
COMMISSION, AND TO CHAPTER 400g OF THE GENERAL
STATUTES CONCERNING REAL ESTATE APPRAISERS.
Be it enacted by the Senate and House of
Representatives in General Assembly convened:
Section 1. Section 20-311 of the general
statutes is repealed and the following is
substituted in lieu thereof:
As used in this chapter, AS AMENDED BY THIS
ACT, UNLESS THE CONTEXT OTHERWISE REQUIRES:
(1) "Real estate broker" OR "BROKER" means (A)
any person, partnership, association, limited
liability company or corporation which, for
another and for a fee, commission or other
valuable consideration, lists for sale, sells,
exchanges, buys or rents, or offers or attempts to
negotiate a sale, exchange, purchase or rental of,
an estate or interest in real estate, or a resale
of a mobile manufactured home, as defined in
[subsection (a)] SUBDIVISION (1) of section 21-64,
or collects or offers or attempts to collect rent
for the use of real estate, [. "Real estate
broker" also includes] AND (B) any person,
partnership, association, limited liability
company or corporation employed by or on behalf of
the owner or owners of lots or other parcels of
real estate, at a stated salary, upon commission,
upon a salary and commission basis or otherwise to
sell such real estate, or any parts thereof, in
lots or other parcels, and who sells or exchanges,
or offers, attempts or agrees to negotiate the
sale or exchange of, any such lot or parcel of
real estate;
(2) "Real estate salesperson" OR "SALESPERSON"
means a person affiliated with any real estate
broker as an independent contractor or employed by
a real estate broker to list for sale, sell or
offer for sale, to buy or offer to buy or to
negotiate the purchase or sale or exchange of real
estate, or to offer for resale, a mobile
manufactured home, as defined in [subsection (a)]
SUBDIVISION (1) of section 21-64, or to lease or
rent or offer to lease, rent or place for rent any
real estate, or to collect or offer or attempt to
collect rent for the use of real estate for or
[in] ON behalf of such real estate broker, or who
offers, sells or attempts to sell the real estate
or mobile manufactured homes of a licensed broker,
[provided] BUT DOES NOT INCLUDE employees of any
real estate broker whose principal occupation is
clerical work in an office, or janitors or
custodians engaged principally in that occupation;
[, shall not be deemed to be real estate
salespersons within the terms of this chapter;]
(3) "Engaging in the real estate business"
means acting for another and for a fee, commission
or other valuable consideration in the listing for
sale, selling, exchanging, buying or renting, or
offering or attempting to negotiate a sale,
exchange, purchase or rental of, an estate or
interest in real estate or a resale of a mobile
manufactured home, as defined in [subsection (a)]
SUBDIVISION (1) of section 21-64, or collecting
upon a loan secured or to be secured by a mortgage
or other encumbrance upon or transfer of real
estate;
(4) "Person" means [and includes] any
individual, partnership, association, limited
liability company or corporation; AND
(5) "COMMISSION" MEANS THE CONNECTICUT REAL
ESTATE COMMISSION APPOINTED UNDER THE PROVISIONS
OF SECTION 20-311a, AS AMENDED BY THIS ACT.
Sec. 2. Section 20-311a of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) There is created in the Department of
Consumer Protection the Connecticut Real Estate
Commission.
(b) The [Real Estate Commission] COMMISSION
shall consist of eight persons, electors of the
state, appointed by the Governor. Three of the
members shall be at the time of appointment
licensed real estate brokers, two of the members
shall be at the time of appointment licensed real
estate salespersons and three of the members shall
be public members. Not more than a bare majority
of [said] THE commission shall be members of the
same political party and there shall be at least
one member from each congressional district.
(c) The members of the [Real Estate
Commission] COMMISSION shall serve until the
expiration of the term for which they were
appointed and until their successors have
qualified. Members shall not be compensated for
their services but shall be reimbursed for
necessary expenses incurred in the performance of
their duties. The Governor may remove any
[commissioner] MEMBER for cause upon notice and an
opportunity to be heard. Upon the death,
resignation or removal of a member, the Governor
shall appoint a successor to serve for the
unexpired portion of the vacated term and until
[his] SUCH MEMBER'S successor is appointed and
qualifies. Each member shall, before entering upon
his duties, take and file with the [Real Estate
Commission] COMMISSION an oath TO faithfully [to]
perform the duties of his office.
Sec. 3. Section 20-311b of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) Within thirty days after the appointment
of the members of the [Real Estate Commission]
COMMISSION, the commission shall meet in the city
of Hartford for the purpose of organizing by
selecting such officers other than a chairperson
as the commission may deem necessary and
appropriate. A majority of the members of the
commission shall constitute a quorum for the
exercise of the powers or authority conferred upon
it.
(b) (1) The [Real Estate Commission]
COMMISSION shall authorize the Department of
Consumer Protection to issue licenses to real
estate brokers and real estate salespersons. The
[Real Estate Commission] COMMISSION shall receive
and approve applications for real estate student
intern programs pursuant to the provisions of
section 20-314c, AS AMENDED BY THIS ACT.
(2) The [Real Estate Commission] COMMISSION
shall administer the provisions of this chapter,
AS AMENDED BY THIS ACT, as to licensure and
issuance, renewal, suspension or revocation of
licenses concerning the real estate business.
(c) The commission shall be provided with the
necessary office space in Hartford by the
Commissioner of Public Works. [and the] THE PLACE
OF BUSINESS OF THE commission and all files,
records and property of the commission shall at
all times be and remain [therein] AT SUCH OFFICE,
except that inactive files shall be stored at a
location designated by the commission.
(d) The commission shall hold meetings and
hearings in Hartford, in space provided by the
Commissioner of Administrative Services, or at
such places outside of Hartford as shall be
determined by the chairman of the commission. The
commission shall meet at least once in each [three
months'] THREE-MONTH period and may meet more
often [on] AT THE call of its chairman. The
chairman of the commission shall call a meeting of
the commission whenever requested to do so by a
majority of the members of the commission.
(e) The commission shall vote on all matters
requiring a decision and votes shall be recorded
in the commission's minutes.
Sec. 4. Section 20-311d of the general
statutes is repealed and the following is
substituted in lieu thereof:
The chairman OF THE COMMISSION shall be bonded
under the provisions of section 4-20, in such sum
as the State Insurance Purchasing Board may
prescribe, with THE condition that [he] THE
CHAIRMAN faithfully perform the duties of his
office and account for all funds received [under
color of his] PURSUANT TO SUCH office.
Sec. 5. Section 20-311f of the general
statutes is repealed and the following is
substituted in lieu thereof:
The commission shall have THE power to act as
a board of arbitration to consider and decide any
dispute over commissions arising between brokers
or salespersons THAT IS voluntarily submitted to
the commission by the parties to such dispute.
Sec. 6. Subsection (a) of section 20-312 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(a) No person shall act as a real estate
broker or real estate salesperson without a
license issued by the commission, unless [exempted
by the provisions of] EXEMPT UNDER this chapter,
AS AMENDED BY THIS ACT. The Commissioner of
Consumer Protection may enter into any contract
for the purpose of administratively processing the
renewal of licenses on behalf of the [Connecticut
Real Estate Commission] COMMISSION.
Sec. 7. Section 20-313 of the general statutes
is repealed and the following is substituted in
lieu thereof:
Any person possessing the qualifications
prescribed in this chapter, AS AMENDED BY THIS
ACT, and in any regulations adopted [in conformity
thereto] UNDER THIS CHAPTER, AS AMENDED BY THIS
ACT, who desires to engage in the real estate
business shall make application, in writing, as
[hereinafter] provided IN THIS CHAPTER, AS AMENDED
BY THIS ACT, to the commission for the specific
license desired.
Sec. 8. Section 20-314 of the general statutes
is repealed and the following is substituted in
lieu thereof:
(a) Licenses shall be granted UNDER THIS
CHAPTER, AS AMENDED BY THIS ACT, only to persons
who bear a good reputation for honesty,
truthfulness and fair dealing and who are
competent to transact the business of a real
estate broker or real estate salesperson in such
manner as to safeguard the interests of the
public.
(b) Each application for a license or for a
renewal thereof shall be made in writing, on such
forms and in such manner as is prescribed by the
Department of Consumer Protection and accompanied
by such evidence in support of such application as
is prescribed by the commission. The commission
may require such information with regard to an
applicant as [it] THE COMMISSION deems desirable,
with due regard to the paramount interests of the
public, as to the honesty, truthfulness, integrity
and competency of the applicant and, where the
applicant is a corporation, association or
partnership, as to the honesty, truthfulness,
integrity and competency of the officers of such
corporation or the members of such association or
partnership.
(c) In order to determine the competency of
any applicant for a real estate broker's license
or a real estate salesperson's license the
commission shall, on payment to [it] THE
COMMISSION of an application fee of sixty dollars
[,] by an applicant for a real estate broker's
license or on payment to [it] THE COMMISSION of an
application fee of forty dollars by an applicant
for a real estate salesperson's license, subject
such applicant to personal written examination as
to [his] THE APPLICANT'S competency to act as a
real estate broker or real estate salesperson, as
the case may be. Such examination shall be
prepared by the Department of Consumer Protection
or by a national testing service designated by the
Commissioner of Consumer Protection and shall be
administered to applicants by the Department of
Consumer Protection or by such testing service at
such times and places as [said] THE commissioner
may deem necessary. The commission may waive the
uniform portion of the written examination
requirement in the case of an applicant who has
taken the national testing service examination in
another state within two years from the date of
application and has received a score deemed
satisfactory by the commission. The Commissioner
of Consumer Protection shall adopt regulations, IN
ACCORDANCE WITH CHAPTER 54, establishing passing
scores for examinations. In addition to such
application fee, applicants taking the examination
administered by a national testing service shall
be required to pay directly to such testing
service an examination fee covering the cost of
such examination. Each payment of such application
fee shall entitle the applicant to take such
examination four times within the one-year period
from the date of payment. Eligibility to take such
examination may be renewed annually upon payment
of an additional five-dollar fee.
(d) (1) Each applicant for a real estate
broker's license shall, before being admitted to
such examination, prove to the satisfaction of the
[Real Estate Commission] COMMISSION: (A) (i) That
[he] THE APPLICANT has been actively engaged for
at least two years as a licensed real estate
salesperson under the supervision of a licensed
real estate broker in this state, (ii) that [he]
THE APPLICANT has successfully completed a course
approved by the commission in real estate
principles and practices of at least thirty
classroom hours of study, (iii) that [he] THE
APPLICANT has successfully completed a course
approved by the commission in real estate
appraisal consisting of at least thirty classroom
hours of study, and (iv) that [he] THE APPLICANT
has successfully completed a course approved by
the commission consisting of at least thirty
classroom hours as prescribed by the commission,
or (B) that [he] THE APPLICANT has equivalent
experience or education as determined by the
commission.
(2) Each applicant for a real estate
salesperson's license shall, before being admitted
to such examination, prove to the satisfaction of
the [Real Estate Commission] COMMISSION (A) that
[he] THE APPLICANT has successfully completed a
course approved by the commission in real estate
principles and practices consisting of at least
thirty classroom hours of study, or (B) that [he]
THE APPLICANT has equivalent experience or
education as determined by the commission.
(e) The provisions of subsections (c) and (d)
of this section shall not apply to any renewal of
a real estate broker's license, or a real estate
salesperson's license issued prior to October 1,
1973.
(f) All licenses issued under the provisions
of this chapter, AS AMENDED BY THIS ACT, shall
expire annually. At the time of application for a
real estate broker's license, there shall be paid
to the [Real Estate Commission] COMMISSION, for
each individual applicant and for each proposed
active member or officer of a firm, partnership,
association or corporation, the sum of four
hundred fifty dollars, and for the annual renewal
thereof, the sum of three hundred dollars and for
a real estate salesperson's license two hundred
twenty-five dollars and for the annual renewal
thereof the sum of two hundred twenty-five
dollars. If a license is not issued, the fee shall
be returned. [Persons holding a current real
estate broker's or salesperson's license shall not
be required to pay the fee for a residential
appraiser's license or renewal thereof until April
30, 1992, provided they have met all requirements
set forth in sections 20-508 to 20-511, inclusive,
and 20-515.] A real estate broker's license issued
to any partnership, association or corporation
shall entitle the individual designated in the
application, as provided in section 20-312, AS
AMENDED BY THIS ACT, upon compliance with the
terms of this chapter, AS AMENDED BY THIS ACT, but
without the payment of any further fee, to perform
all of the acts of a real estate broker
[contemplated by] UNDER this chapter, AS AMENDED
BY THIS ACT, on behalf of such partnership,
association or corporation. Any license which
expires AND IS NOT RENEWED pursuant to this
subsection may be reinstated by the commission,
if, not later than two years after the date of
expiration, the former licensee pays to the
commission for each real estate broker's license
the sum of three hundred dollars and for each real
estate salesperson's license the sum of two
hundred twenty-five dollars for each year or
fraction thereof from the date of expiration of
the previous license to the date of payment for
reinstatement, except that any licensee whose
license expired after [his entering] SUCH LICENSEE
ENTERED military service shall be reinstated
without payment of any fee if an application for
reinstatement is filed with the commission within
two years after the date of expiration. Any such
reinstated license shall expire on the next
succeeding April thirtieth.
(g) Any person whose application has been
filed as [herein] provided IN THIS SECTION AND who
is refused a license shall be given notice and
afforded AN opportunity for hearing as provided in
the regulations [established] ADOPTED by the
Commissioner of Consumer Protection.
Sec. 9. Section 20-314a of the general
statutes is repealed and the following is
substituted in lieu thereof:
The Commissioner of Consumer Protection, with
the advice and assistance of the [Real Estate
Commission] COMMISSION, may [make] ADOPT such
reasonable regulations, IN ACCORDANCE WITH CHAPTER
54, as the commissioner [may deem] DEEMS necessary
relating to the approval of schools offering
courses in real estate principles and practice and
related subjects, or real estate student intern
programs, the content of such courses or programs
and the advertising to the public of the services
of such schools. Such regulations shall not
require approval of instructors at such schools.
The [Real Estate Commission] COMMISSION may exempt
any applicant for a real estate broker's license
from the requirements concerning experience under
the provisions of subsection (d) of section
20-314, AS AMENDED BY THIS ACT, if [it] THE
COMMISSION determines that such applicant is
unable to meet such requirements solely because
such applicant has been subjected to
discrimination based on race, creed or color,
which discrimination interfered with [his] SUCH
APPLICANT'S ability to meet such requirements.
Sec. 10. Section 20-314c of the general
statutes is repealed and the following is
substituted in lieu thereof:
Any student who wishes to enroll in a real
estate student intern program in this state, shall
file an application with the [real estate]
commission. The commission shall approve such
application if it appears to the satisfaction of
the commission that the program is provided by an
accredited school and the student will be under
the direct supervision of a real estate broker
licensed in the state. The application shall
contain the name and address of such licensed real
estate broker, and a statement from the broker
that [he] SUCH BROKER shall be liable for any acts
of negligence, fraud or misrepresentation by such
student while under such broker's supervision. If
the commission approves the application, [it] THE
COMMISSION shall exempt such student from the
license requirements of this chapter, AS AMENDED
BY THIS ACT, during the period in which such
student is acting as an intern under the direct
supervision of a real estate broker licensed in
the state while enrolled in such intern program.
Sec. 11. Section 20-316 of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) No license UNDER THIS CHAPTER, AS AMENDED
BY THIS ACT, shall be denied by the [Real Estate
Commission] COMMISSION to any applicant who has
been convicted of forgery, embezzlement, obtaining
money under false pretenses, extortion, criminal
conspiracy to defraud or other like offense or
offenses, or to any association or partnership of
which such person is a member, or to any
corporation of which such person is an officer or
in which as a stockholder such person has or
exercises a controlling interest either directly
or indirectly, except in accordance with the
provisions of section 46a-80.
(b) No license UNDER THIS CHAPTER, AS AMENDED
BY THIS ACT, shall be issued by the Department of
Consumer Protection to any applicant (1) whose
application for a license as a real estate broker
or real estate salesperson has, within one year
prior to the date of his application [hereunder]
UNDER THIS CHAPTER, AS AMENDED BY THIS ACT, been
rejected in this state, in any other state or in
the District of Columbia or (2) whose license as a
real estate broker or real estate salesperson has,
within one year prior to the date of his
application [hereunder] UNDER THIS CHAPTER, AS
AMENDED BY THIS ACT, been revoked in this state,
in any other state or in the District of Columbia.
(c) No license as a real estate broker or real
estate salesperson shall be issued UNDER THIS
CHAPTER, AS AMENDED BY THIS ACT, to any person who
has not attained the age of eighteen years.
(d) The provisions of this section shall apply
to all applicants for licenses UNDER THIS CHAPTER,
AS AMENDED BY THIS ACT, whether or not such
applicant was engaged in the real estate business
in this state on July 1, 1953, and whenever his
application is filed.
Sec. 12. Section 20-317 of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) A nonresident of this state may become a
real estate broker or real estate salesperson by
conforming to all of the provisions of this
chapter, AS AMENDED BY THIS ACT. The commission
shall recognize a current, valid license issued to
a currently practicing, competent real estate
broker or real estate salesperson by another state
as satisfactorily qualifying him for a license as
a real estate broker or real estate salesperson
under this chapter, AS AMENDED BY THIS ACT,
provided (1) the laws of the state of which he is
a resident require that applicants for licenses as
real estate brokers and real estate salespersons
shall establish their competency by written
examinations and permit licenses to be issued to
residents of the state of Connecticut, licensed
under this chapter, AS AMENDED BY THIS ACT,
without examination, [and provided further that]
(2) the licensure requirements of such state are
substantially similar to [,] or higher than those
of this state, and (3) such broker or salesperson
has no disciplinary proceeding or unresolved
complaint pending against him. If the applicant is
a resident of a state which does not have such
requirement, such applicant shall be required to
pass the Connecticut portion of the real estate
examination.
(b) Every nonresident applicant shall file an
irrevocable consent that suits and actions may be
commenced against such applicant in the proper
court in any judicial district of the state in
which a cause of action may arise or in which the
plaintiff may reside, by the service of any
process or pleading, authorized by the laws of
this state, on the chairman of the [real estate]
commission, such consent stipulating and agreeing
that such service of such process or pleading
shall be taken and held in all courts to be as
valid and binding as if service had been made upon
such applicant in the state of Connecticut. If any
process or pleadings [mentioned in] UNDER this
chapter, AS AMENDED BY THIS ACT, are served upon
[said] THE chairman, it shall be by duplicate
copies, one of which shall be filed in the office
of the commission, and the other immediately
forwarded by registered or certified mail, to the
applicant against whom such process or pleadings
are directed, at the last-known address of such
applicant as shown by the records of the
commission. [, and no] NO default in any such
proceedings or action shall be taken unless it
appears by affidavit of the chairman of the
commission that a copy of the process or pleading
was mailed to the defendant as [herein] required
BY THIS SUBSECTION, and no judgment by default
shall be taken in any such action or proceeding
within twenty days after the date of mailing of
such process or pleading to the nonresident
defendant.
Sec. 13. Section 20-318 of the general
statutes is repealed and the following is
substituted in lieu thereof:
The Department of Consumer Protection shall
issue to each licensee UNDER THIS CHAPTER, AS
AMENDED BY THIS ACT, a license certificate in such
size and form as [it] THE DEPARTMENT determines.
Sec. 14. Section 20-319 of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) The [Real Estate Commission] COMMISSION
shall authorize the Department of Consumer
Protection to issue [a] AN ANNUAL renewal license
to any applicant who possesses the qualifications
specified IN and otherwise has complied with the
provisions of this chapter, AS AMENDED BY THIS
ACT, and any regulation adopted [in conformity
thereto] UNDER THIS CHAPTER, AS AMENDED BY THIS
ACT.
(b) There is hereby established an annual
renewal license to be issued by the Department of
Consumer Protection. Persons licensed in
accordance with the provisions of this chapter, AS
AMENDED BY THIS ACT, shall fulfill a continuing
education requirement. Applicants for an annual
renewal license for real estate brokers or REAL
ESTATE salespersons shall, in addition to the
other requirements imposed by the provisions of
this chapter, AS AMENDED BY THIS ACT, in any
even-numbered year, submit proof of compliance
with the continuing education requirements of this
subsection to the [Real Estate Commission]
COMMISSION, accompanied by an eight-dollar
processing fee. The continuing education
requirement may be satisfied by successful
completion of any of the following during the
two-year period preceding such renewal: (1) A
course or courses, approved by the commission, of
continuing education in current real estate
practices and licensing laws consisting of not
less than twelve hours of classroom study; or (2)
a written examination prepared and administered by
either the Department of Consumer Protection, or
by a national testing service approved by the
department, which demonstrates a knowledge of
current real estate practices and licensing laws;
or (3) equivalent continuing educational
experience or study as determined by regulations
adopted pursuant to subsection (d). An applicant
for examination under subdivision (2) of this
subsection shall pay the required examination fee
to the national testing service, if administered
by such testing service, or to the Department of
Consumer Protection, if administered by the
department.
(c) If the [Real Estate Commission] COMMISSION
refuses to grant [a] AN ANNUAL renewal license,
the licensee or applicant, upon written notice
received as provided for in this chapter, AS
AMENDED BY THIS ACT, may have recourse to any of
the remedies provided by sections 20-314 and
20-322, AS AMENDED BY THIS ACT.
(d) The Commissioner of Consumer Protection,
in consultation with the [Real Estate Commission]
COMMISSION, shall adopt regulations, in accordance
with [the provisions of] chapter 54, concerning
the approval of schools, institutions or
organizations offering courses in current real
estate practices and licensing laws and the
content of such courses. Such regulations shall
include, but not be limited to: (1) Specifications
for meeting equivalent continuing educational
experience or study; (2) exceptions from
continuous education requirements for reasons of
health or instances of individual hardship.
Sec. 15. Section 20-319a of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) Any licensed real estate salesperson who
transfers his employment from one broker to
another or his affiliation with a broker as an
independent contractor shall register such
transfer with, and pay a registration fee of
twenty-five dollars to, the [Real Estate
Commission] COMMISSION.
(b) A fee of twenty-five dollars shall be paid
to the [Real Estate Commission] COMMISSION for the
issuance of a license certification or a duplicate
of a license certificate.
Sec. 16. Section 20-320 of the general
statutes is repealed and the following is
substituted in lieu thereof:
The Department of Consumer Protection may,
upon the request of the [Real Estate Commission]
COMMISSION or upon the verified complaint in
writing of any person, [provided] IF such
complaint, or such complaint together with
evidence, documentary or otherwise, presented in
connection [therewith] WITH SUCH COMPLAINT, shall
make out a prima facie case, investigate the
actions of any real estate broker or real estate
salesperson or any person who assumes to act in
any of such capacities within this state. The
[Real Estate Commission shall have the power
temporarily to suspend or permanently to]
COMMISSION MAY TEMPORARILY SUSPEND OR PERMANENTLY
revoke any license issued under the provisions of
this chapter, AS AMENDED BY THIS ACT, and, in
addition to or in lieu of such suspension or
revocation, may, in its discretion, impose a fine
of not more than two thousand dollars at any time
when, after proceedings as provided in section
20-321, [it] AS AMENDED BY THIS ACT, THE
COMMISSION finds that the licensee has by false or
fraudulent misrepresentation obtained a license or
that the licensee is guilty of any of the
following: (1) Making any material
misrepresentation; (2) making any false promise of
a character likely to influence, persuade or
induce; (3) acting as an agent for more than one
party in a transaction without the knowledge of
all parties for whom the licensee acts; (4)
representing or attempting to represent a real
estate broker other than the licensee's employer
or the broker with whom the licensee is
affiliated, without the express knowledge and
consent of the licensee's employer or affiliated
broker; (5) failing, within a reasonable time, to
account for or remit any moneys coming into the
licensee's possession which belong to others; (6)
entering into an exclusive listing contract or
buyer agency contract which contains a fixed
termination date if such contract also provides
for an automatic continuation of the period of
such contract beyond such date; (7) failing to
deliver immediately a copy of any instrument to
any party or parties executing the [same]
INSTRUMENT, where such instrument has been
prepared by [such] THE licensee or under the
licensee's supervision and where such instrument
relates to the employment of the licensee or to
any matters pertaining to the consummation of a
lease, or the purchase, sale or exchange of real
property or any other type of real estate
transaction in which the licensee may participate
as a broker or a salesperson; (8) conviction in a
court of competent jurisdiction of forgery,
embezzlement, obtaining money under false
pretenses, larceny, extortion, conspiracy to
defraud, or other like offense or offenses,
provided suspension or revocation under this
subdivision shall be subject to the provisions of
section 46a-80; (9) collecting compensation in
advance of services to be performed and failing,
upon demand of the person paying the compensation
or the commission, to render an accounting of the
use of such money; (10) commingling funds of
others with the licensee's own, or failing to keep
funds of others in an escrow or trustee account;
(11) any act or conduct which constitutes
dishonest, fraudulent or improper dealings; (12)
failing to provide the disclosures required by
section 20-325c, AS AMENDED BY THIS ACT; (13) a
violation of any provision of this chapter, AS
AMENDED BY THIS ACT, or any regulation [issued]
ADOPTED under this chapter, AS AMENDED BY THIS
ACT.
Sec. 17. Section 20-320a of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) No real estate broker [,] OR real estate
salesperson, [as defined in section 20-311, or
any] NO person affiliated with such broker or
salesperson, [or any] AND NO person [engaged]
ENGAGING in the real estate business [, as defined
in said section,] may receive a fee, commission or
other form of referral fee for the referral of any
buyer of real property to (1) an attorney-at-law
admitted to practice in this state or any person
affiliated with such attorney or (2) any mortgage
broker, [or mortgage] ANY lender, as defined in
subdivision (5) of section 49-31d, or any person
affiliated with such mortgage broker or lender.
(b) The Department of Consumer Protection may,
upon the request of the [Real Estate Commission]
COMMISSION or upon the verified complaint in
writing of any person, [provided] IF such
complaint, or such complaint together with
evidence, documentary or otherwise, presented in
connection [therewith] WITH SUCH COMPLAINT, shall
make out a prima facie case, investigate the
actions of any real estate broker or real estate
salesperson or any person who assumes to act in
any of such capacities within this state. The
[Real Estate Commission shall have the power
temporarily to suspend or permanently to]
COMMISSION MAY TEMPORARILY SUSPEND OR PERMANENTLY
revoke any license issued under the provisions of
THIS chapter, [392] AS AMENDED BY THIS ACT, and,
in addition to or in lieu of such suspension or
revocation, may, in its discretion, impose a fine
of not more than one thousand dollars for the
first offense at any time when, after proceedings
as provided in section 20-321, [it] AS AMENDED BY
THIS ACT, THE COMMISSION finds that the licensee
is guilty of violating any of the provisions of
subsection (a) of this section.
Sec. 18. Section 20-321 of the general
statutes is repealed and the following is
substituted in lieu thereof:
Before refusing, suspending or revoking any
license or imposing any fine UNDER THIS CHAPTER,
AS AMENDED BY THIS ACT, the [Real Estate
Commission] COMMISSION shall give notice and
afford AN opportunity for hearing as provided in
the regulations [established] ADOPTED by the
Commissioner of Consumer Protection.
Sec. 19. Section 20-322 of the general
statutes is repealed and the following is
substituted in lieu thereof:
Any person aggrieved by any decision or order
of the [Real Estate Commission] COMMISSION may
appeal in accordance with the provisions of
section 4-183.
Sec. 20. Section 20-323 of the general
statutes is repealed and the following is
substituted in lieu thereof:
Any licensee UNDER THIS CHAPTER, AS AMENDED BY
THIS ACT, WHO IS convicted of a violation of any
of the offenses enumerated in subdivision (8) of
section 20-320, AS AMENDED BY THIS ACT, shall
incur a forfeiture of his license and all moneys
that may have been paid [therefor] FOR SUCH
LICENSE. The clerk of any court [wherein] IN WHICH
such conviction has been [had] RENDERED shall
forward to the commission without charge a
certified copy of such conviction. The commission,
upon the receipt of a copy of the judgment of
conviction, shall, [within ten days thereafter]
NOT LATER THAN TEN DAYS AFTER SUCH RECEIPT, notify
the licensee, in writing, of the revocation of his
license. [, which] SUCH notice shall be conclusive
of the revocation [thereof] OF SUCH LICENSE.
Application for reinstatement of such license
shall be subject to the provisions of section
46a-80.
Sec. 21. Section 20-324 of the general
statutes is repealed and the following is
substituted in lieu thereof:
Any person wilfully misrepresenting any fact
required to be disclosed in any application or in
any other form, paper or document required to be
filed with the [Real Estate Commission] COMMISSION
in connection with an application for a license
UNDER THIS CHAPTER, AS AMENDED BY THIS ACT, shall
be fined not more than five hundred dollars or
imprisoned not more than six months or both.
Sec. 22. Section 20-324a of the general
statutes is repealed and the following is
substituted in lieu thereof:
The [Connecticut Real Estate Commission is
authorized and directed to] COMMISSION SHALL
establish and maintain a Real Estate Guaranty Fund
from which, subject to the provisions of sections
20-324a to 20-324j, inclusive, AS AMENDED BY THIS
ACT, any person aggrieved by any action of a real
estate broker or real estate salesperson, duly
licensed in this state under section 20-312, AS
AMENDED BY THIS ACT, by reason of the embezzlement
of money or property, or money or property
unlawfully obtained from any person by false
pretenses, artifice, trickery or forgery or by
reason of any fraud, misrepresentation or deceit
by or on the part of any such real estate broker
or real estate salesperson or the unlicensed
employee of any such real estate broker, may
recover, upon approval by the commission of an
application brought pursuant to the provisions of
section 20-324e, AS AMENDED BY THIS ACT,
compensation in an amount not exceeding in the
aggregate the sum of twenty-five thousand dollars
in connection with any one real estate transaction
or claim, regardless of the number of persons
aggrieved or parcels of real estate involved in
such real estate transaction or claim.
Sec. 23. Section 20-324b of the general
statutes is repealed and the following is
substituted in lieu thereof:
Any person who receives a real estate broker's
or real estate salesperson's license UNDER THIS
CHAPTER, AS AMENDED BY THIS ACT, for the first
time shall pay an additional ONE-TIME fee of
twenty dollars in addition to all other fees
payable, which additional fee shall be credited to
the Real Estate Guaranty Fund. [, provided in no
case shall any real estate broker or salesperson
be required to pay said fee of twenty dollars more
than once.]
Sec. 24. Section 20-324c of the general
statutes is repealed and the following is
substituted in lieu thereof:
The [Real Estate Commission] COMMISSION shall
maintain the Real Estate Guaranty Fund at a level
not to exceed five hundred thousand dollars and to
this intent moneys received under section 20-324b,
AS AMENDED BY THIS ACT, shall be credited to [the
guaranty] SAID fund whenever the fund balance is
below five hundred thousand dollars. [and any] ANY
such moneys may be invested or reinvested in the
same manner as funds of the state employees
retirement system, and the interest arising from
such investments shall be credited to the General
Fund. Any moneys received under section 20-324b,
AS AMENDED BY THIS ACT, not required to maintain
the Real Estate Guaranty Fund balance shall be
deposited to the General Fund. All moneys in the
[guaranty fund] REAL ESTATE GUARANTY FUND in
excess of five hundred thousand dollars, shall be
transferred by the STATE Treasurer to the General
Fund.
Sec. 25. Section 20-324d of the general
statutes is repealed and the following is
substituted in lieu thereof:
No application to recover compensation under
sections 20-324a to 20-324j, inclusive, AS AMENDED
BY THIS ACT, which might subsequently result in an
order for collection from [said guaranty fund] THE
REAL ESTATE GUARANTY FUND shall be brought later
than two years from the final determination of, or
expiration of time for appeal in connection with,
any judgment.
Sec. 26. Section 20-324e of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) When any aggrieved person commences any
action for a judgment which may result in
collection from the Real Estate Guaranty Fund, the
aggrieved person shall notify the [Real Estate
Commission] COMMISSION in writing to this effect
at the time of the commencement of such action.
Such written notice shall toll the time for making
application to the [Real Estate Commission]
COMMISSION pursuant to section 20-324d, AS AMENDED
BY THIS ACT. [Said] THE commission shall have the
right to enter an appearance, intervene in or
defend any such action and may waive the required
written notice for good cause shown.
(b) When any aggrieved person recovers a valid
judgment in the Superior Court against any real
estate broker or real estate salesperson or the
unlicensed employee of any such real estate broker
for loss or damages sustained by reason of the
embezzlement of money or property, or money or
property unlawfully obtained from any person by
false pretenses, artifice, trickery or forgery or
by reason of any fraud, misrepresentation or
deceit by or on the part of such real estate
broker or salesperson or the unlicensed employee
of any such real estate broker, such aggrieved
person may upon the final determination of, or
expiration of time for appeal in connection with,
any judgment, apply to the [Real Estate
Commission] COMMISSION for an order directing
payment out of the Real Estate Guaranty Fund of
the amount unpaid upon the judgment, subject to
the limitations stated in section 20-324a, AS
AMENDED BY THIS ACT, and the limitations specified
in this section. The license of any such broker or
salesperson shall be automatically revoked upon
the entry of such judgment.
(c) The [Real Estate Commission] COMMISSION
shall proceed upon such application in a summary
manner, and, upon the hearing thereof, the
aggrieved person shall be required to show: (1) He
is not a spouse of the debtor or the personal
representative of such spouse; (2) he has complied
with all the requirements of this section; (3) he
has obtained a judgment as [set out] PROVIDED in
subsection (b) of this section, stating the amount
thereof and the amount owing thereon at the date
of the application; (4) he has caused to be issued
a writ of execution upon [said] THE judgment and
the officer executing the same has made a return
showing that no personal or real property of the
judgment debtor liable to be levied upon in
satisfaction of the judgment could be found, or
that the amount realized on the sale of them or of
such of them as were found, under the execution,
was insufficient to satisfy the judgment, stating
the amount so realized and the balance remaining
due on the judgment after application thereon of
the amount realized; (5) he has made all
reasonable searches and inquiries to ascertain
whether the judgment debtor [is possessed of]
POSSESSES real or personal property or other
assets, liable to be sold or applied in
satisfaction of the judgment; (6) that by such
search he has discovered no personal or real
property or other assets liable to be sold or
applied, or that he has discovered certain of
them, describing them, owned by the judgment
debtor and liable to be so applied, and that he
has taken all necessary action and proceedings for
the realization thereof, and that the amount
thereby realized was insufficient to satisfy the
judgment, stating the amount so realized and the
balance remaining due on the judgment after
application of the amount realized.
(d) Whenever the aggrieved person satisfies
the [Real Estate Commission] COMMISSION that it is
not practicable to comply with one or more of the
requirements enumerated in subdivisions (4), (5)
and (6) of subsection (c) of this section and that
the aggrieved person has taken all reasonable
steps to collect the amount of the judgment or the
unsatisfied part thereof and has been unable to
collect the same, the [Real Estate Commission]
COMMISSION may in its discretion [dispense with
the necessity for complying with] WAIVE such
requirements.
(e) The [Real Estate Commission shall make an
order requiring] COMMISSION SHALL ORDER payment
from the Real Estate Guaranty Fund of [whatever]
ANY sum it shall find to be payable upon the
claim, pursuant to the provisions of and in
accordance with the limitations contained in this
section and section 20-324a, AS AMENDED BY THIS
ACT, if the commission is satisfied, upon the
hearing, of the truth of all matters required to
be shown by the aggrieved person by subsection (c)
of this section and that the aggrieved person has
fully pursued and exhausted all remedies available
to him for recovering the amount awarded by the
judgment of the court.
(f) If the [Real Estate Commission] COMMISSION
pays from [said fund] THE REAL ESTATE GUARANTY
FUND any amount in settlement of a claim or toward
satisfaction of a judgment against a licensed real
estate broker or real estate salesperson pursuant
to an order under subsection (e) OF THIS SECTION,
such broker or salesperson shall not be eligible
to receive a new license until he has repaid in
full, plus interest at a rate to be determined by
the commission and which shall reflect current
market rates, the amount paid from [said guaranty]
THE fund on his account. A discharge in bankruptcy
shall not relieve a person from the penalties and
disabilities provided in this subsection.
(g) If, at any time, the money deposited in
[said guaranty fund] THE REAL ESTATE GUARANTY FUND
is insufficient to satisfy any duly authorized
claim or portion thereof, the [Real Estate
Commission] COMMISSION shall, when sufficient
money has been deposited in [said guaranty] THE
fund, satisfy such unpaid claims or portions
thereof, in the order that such claims or portions
thereof were originally filed, plus accumulated
interest at the rate of four per cent a year.
Sec. 27. Section 20-324f of the general
statutes is repealed and the following is
substituted in lieu thereof:
Any person filing with the [Real Estate
Commission] COMMISSION any notice, statement or
other document required under the provisions of
section 20-324e, AS AMENDED BY THIS ACT, which is
false or untrue or contains any material
misstatement of fact shall be fined not less than
two hundred dollars.
Sec. 28. Section 20-324g of the general
statutes is repealed and the following is
substituted in lieu thereof:
When the [Real Estate Commission] COMMISSION
receives notice, as provided in section 20-324e,
AS AMENDED BY THIS ACT, it may enter an
appearance, file an answer, appear at the court
hearing, defend the action or take whatever other
action [it] THE COMMISSION may deem appropriate on
the behalf and in the name of the defendant and
take recourse through any appropriate method of
review or appeal on behalf and in the name of the
defendant.
Sec. 29. Section 20-324h of the general
statutes is repealed and the following is
substituted in lieu thereof:
When the [Real Estate Commission] COMMISSION
has caused to be paid from [said guaranty fund]
THE REAL ESTATE GUARANTY FUND any sum to the
judgment creditor, the commission shall be
subrogated to all of the rights of the judgment
creditor up to the amount paid, and the judgment
creditor shall assign all of his right, title and
interest in the judgment up to such amount paid to
the [Real Estate Commission] COMMISSION, and any
amount and interest recovered by the [Real Estate
Commission] COMMISSION on the judgment shall be
deposited to [said guaranty] THE fund.
Sec. 30. Section 20-324i of the general
statutes is repealed and the following is
substituted in lieu thereof:
The Commissioner of Consumer Protection, with
the advice and assistance of the [Real Estate
Commission, shall have power to] COMMISSION, MAY
adopt regulations, IN ACCORDANCE WITH CHAPTER 54,
to [effect the efficient administration] CARRY OUT
THE PROVISIONS of sections 20-324a to 20-324j,
inclusive, AS AMENDED BY THIS ACT.
Sec. 31. Section 20-324j of the general
statutes is repealed and the following is
substituted in lieu thereof:
Any person aggrieved by any decision, order or
regulation of the [Real Estate Commission]
COMMISSION under sections 20-324a to 20-324i,
inclusive, AS AMENDED BY THIS ACT, may appeal in
accordance with the provisions of section 20-322,
AS AMENDED BY THIS ACT.
Sec. 32. Section 20-324k of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) Each broker licensed under the provisions
of this chapter, AS AMENDED BY THIS ACT, who in
the course of his real estate business receives,
accepts and holds any moneys on behalf of any
principal, client or other person shall at all
times maintain a separate escrow or trust account,
distinct from his own account, in a bank of his
choice doing business in this state, for the
deposit of all such moneys so received by him.
(b) The [Real Estate Commission] COMMISSION
may examine and audit any escrow or trust account
maintained by any broker in accordance with the
provisions of subsection (a) of this section
whenever [said] THE commission shall deem such
examination and audit necessary.
(c) Any [such] broker who, in the course of
his real estate business and in connection with
any transaction, accepts from any principal,
client or other person any moneys to which he is
not personally and legally entitled, including,
but not limited to, any downpayment, earnest
money, deposit, rental money, rental security
deposit or other money to be held by him in trust,
shall deposit such moneys in his escrow or trust
account within three banking days of the date the
agreement evidencing such transaction is signed by
all necessary parties [thereto] TO SUCH
TRANSACTION, pending final legal disposition of
[the same] SUCH MONEYS in accordance with the
instructions of the person legally entitled
[thereto] TO SUCH MONEYS.
(d) Upon motion, the court may order a party
to an action who is a broker holding funds in
trust in connection with a real estate transaction
to deposit with the court certified funds in an
amount not to exceed the funds held in trust.
Conditioned upon the receipt of [said] SUCH
CERTIFIED funds, the court shall also order the
dismissal of any claim against [said] THE broker
which claim is based solely on [said] THE broker's
role as stakeholder of [said] SUCH funds.
(e) Any broker who wilfully violates any
provision of this section shall be fined not more
than one thousand dollars or imprisoned not more
than six months or both.
Sec. 33. Section 20-325 of the general
statutes is repealed and the following is
substituted in lieu thereof:
Any person who engages in the business of A
real estate broker or real estate salesperson
without obtaining a license as [herein] provided
IN THIS CHAPTER, AS AMENDED BY THIS ACT, shall be
fined not more than one thousand dollars or
imprisoned not more than six months or both, and
shall be ineligible to obtain a license for one
year from the date of conviction of such offense,
except that the [Real Estate Commission]
COMMISSION, in its discretion, may grant a license
to such person within such one-year period upon
application and after a hearing [thereon] ON SUCH
APPLICATION.
Sec. 34. Subsection (b) of section 20-325c of
the general statutes is repealed and the following
is substituted in lieu thereof:
(b) Notwithstanding any provision of the
general statutes to the contrary, no real estate
broker or real estate salesperson, [as defined in
section 20-311, or any] AND NO person affiliated
with such broker or salesperson, who receives a
fee, commission or other valuable consideration
for the sale of residential real property, may
receive a fee, commission or other valuable
consideration for negotiating, soliciting,
arranging, placing or finding a first mortgage
loan for the buyer in connection with the same
sale unless disclosure is made in accordance with
the provisions of subsection (c) of this section.
Any fee, commission or other valuable
consideration received by such broker or
salesperson for negotiating, soliciting,
arranging, placing or finding a first mortgage
loan shall (1) be related to the services actually
performed, as determined by the Commissioner of
Banking by regulations adopted pursuant to chapter
54, [not later than October 1, 1989,] (2) not be
imposed for the referral of the buyer to the
mortgage lender by such broker or salesperson, and
(3) be paid directly to the broker or salesperson
by the buyer rather than from the mortgage loan
proceeds at the time of closing.
Sec. 35. Subsection (d) of section 20-325e of
the general statutes is repealed and the following
is substituted in lieu thereof:
(d) No more than one application under
subsection (a) of this section or motion under
subsection (c) of this section shall be ruled upon
with respect to any single real property claim for
lien, except that [the foregoing] THIS SUBSECTION
shall not preclude an application or motion by a
person not given notice of the prior application
or not a party to the action at the time the prior
motion was ruled upon.
Sec. 36. Subsection (b) of section 20-325h of
the general statutes is repealed and the following
is substituted in lieu thereof:
(b) [For purposes of this section, the term]
AS USED IN THIS SECTION, "confidential
information" [shall mean] MEANS facts concerning a
person's assets, liabilities, income, expenses,
motivations to purchase, rent or sell real
property and previous offers received or made to
purchase or lease real property which are not part
of a public record or file to which access is
authorized pursuant to section 1-19 or otherwise
subject to disclosure [as a result of] UNDER any
other PROVISION OF THE general [statute] STATUTES
or [regulation] ANY REGULATION of Connecticut
STATE AGENCIES.
Sec. 37. Section 20-326 of the general
statutes is repealed and the following is
substituted in lieu thereof:
The [Real Estate Commission] COMMISSION shall
submit to the Governor, as provided in section
4-60, a report of its official acts under this
chapter, AS AMENDED BY THIS ACT. The commission
shall keep a record of proceedings and orders
pertaining to the matters under its jurisdiction
and of licenses granted, refused, suspended or
revoked by [it] THE COMMISSION and of all reports
sent to its office. The commission shall furnish
without charge, for official use only, certified
copies of licenses and documents relating
[thereto] TO SUCH LICENSES, to officials of the
state or any municipality [therein] IN THIS STATE,
to officials of any other state and to any court
in this state. Any certified copy of any document
or record of the commission, attested as a true
copy by the chairman of the commission, shall be
competent evidence in any court of this state of
the facts [therein] contained IN SUCH COPY.
Sec. 38. Section 20-327a of the general
statutes is repealed and the following is
substituted in lieu thereof:
The Department of Consumer Protection, at the
request of the [Real Estate Commission]
COMMISSION, may periodically compile and publish a
bulletin containing information and material
relating to the commission, its functions and
licenses and other information and material
relating to the real estate industry [which might]
THAT MAY be of help and interest to licensees in
their service of the public. The commission may
also request the department to publish such
information and material in any established
periodical published in the state if, in the
opinion of the commission, such form of
publication would ensure the widest dissemination
of such information and material to licensees and
the public.
Sec. 39. Subsections (a) and (b) of section
20-327b of the general statutes are repealed and
the following is substituted in lieu thereof:
(a) Except as otherwise provided IN THIS
SECTION, each person who offers residential
property in the state for sale, exchange or for
lease with option to buy, shall provide a written
residential condition report to the prospective
purchaser at any time prior to the prospective
purchaser's execution of any binder, contract to
purchase, option, or lease containing a purchase
option. A photocopy, duplicate original, facsimile
transmission, or other exact reproduction or
duplicate of the written residential condition
report containing the prospective purchaser's
written receipt shall be attached to any written
offer, binder or contract to purchase. A
photocopy, duplicate original, facsimile
transmission or other exact reproduction or
duplicate of the written residential condition
report containing the signatures of both seller
and purchaser, shall be attached to any agreement
to purchase the property.
(b) The following shall be exempt from the
provisions of this section: (1) Any transfer from
one or more [coowners] CO-OWNERS solely to one or
more of his [coowners] CO-OWNERS; (2) transfers
made to the spouse, mother, father, brother,
sister, child, grandparent or grandchild of the
transferor where no consideration is paid; (3)
transfers pursuant to an order of the court; (4)
transfers of newly-constructed residential real
property for which an implied warranty is provided
under chapter 827; (5) transfers made by
executors, administrators, trustees or
conservators; (6) transfers by the federal
government, any political subdivision thereof or
any corporation, institution or quasi-governmental
agency chartered by the federal government; (7)
transfers by deed in lieu of foreclosure; (8)
transfers by the state of Connecticut or any
political subdivision thereof; (9) transfers of
property which was the subject of a contract or
option entered into prior to January 1, 1996; and
(10) any transfer of property acquired by a
judgment of strict foreclosure or by foreclosure
by sale or by a deed in lieu of foreclosure.
Sec. 40. Section 20-328 of the general
statutes is repealed and the following is
substituted in lieu thereof:
The Commissioner of Consumer Protection, with
advice and assistance from the [Real Estate
Commission] COMMISSION, may [make] ADOPT such
reasonable regulations, IN ACCORDANCE WITH CHAPTER
54, as the commissioner deems necessary relating
to the form and manner of filing applications for
licenses UNDER THIS CHAPTER, AS AMENDED BY THIS
ACT, and the manner in which licensed real estate
brokers and [salesmen] LICENSED REAL ESTATE
SALESPERSONS shall conduct the real estate
business.
Sec. 41. Section 20-329 of the general
statutes is repealed and the following is
substituted in lieu thereof:
The provisions of this chapter, AS AMENDED BY
THIS ACT, concerning the licensure of real estate
brokers and real estate salespersons shall not
apply to: [any] (1) ANY person who as owner or
lessor performs any of the acts enumerated in
section 20-311, AS AMENDED BY THIS ACT, with
reference to property owned, leased or sought to
be acquired or leased by him, or to his regular
employees who are employed as on-site residential
superintendents or custodians, with respect to the
property so owned or leased or sought to be
acquired or leased when such acts are performed in
the regular course of, or as an incident to, the
management of such property and the investment
therein; [, or to] (2) any person acting as
attorney-in-fact under a duly executed power of
attorney from the owner authorizing the final
consummation by performance of any contract for
the sale, leasing or exchange of real estate, or
to service rendered by any attorney-at-law in the
performance of his duties as such attorney-at-law;
[or to] (3) a receiver, trustee in bankruptcy,
administrator, executor or other fiduciary, while
acting as such, or any person selling real estate
under order of any court, or to a trustee acting
under a trust agreement, deed of trust or will, or
the regular salaried employees thereof; [or to]
(4) witnesses in court as to the values of real
estate; [, or to] (5) persons in the employ of the
federal or state government or any political
subdivision thereof while acting in the course of
such employment; [or to] (6) any employee of any
nonprofit housing corporation which [(1)] (A) has
been certified as a tax-exempt organization under
Section 501(c)(3) of the Internal Revenue Code of
1986, or any subsequent corresponding internal
revenue code of the United States, as from time to
time amended, and manages a housing project, or
[(2)] (B) manages a housing project assisted in
whole or in part by the federal government
pursuant to Section 8 of The United States Housing
Act of 1937, as FROM TIME TO TIME amended, while
such employee is performing duties in the regular
course of, or incidental to, the management of
such housing project; [or to] (7) any person
licensed as a broker in accordance with sections
36a-510 to 36a-524, inclusive, AS AMENDED BY THIS
ACT, who engages solely in the activities
described in subsection (6) of section 36a-510;
[or to] (8) any person licensed to maintain or
operate a mobile manufactured home park under
chapter 412 who performs any of the acts
enumerated in section 20-311, AS AMENDED BY THIS
ACT, with reference to lots or mobile manufactured
homes within the park or to his employees with
respect to lots or mobile manufactured homes
within [said] SUCH park when such acts are
performed in the regular course of, or incidental
to, the management of such property and the
investment therein; or [to] (9) persons licensed
as sellers of mobile manufactured homes under
section 21-67.
Sec. 42. Section 20-329a of the general
statutes is repealed and the following is
substituted in lieu thereof:
[The terms] AS used in sections 20-329a to
[20-329m, inclusive, shall be construed as
follows] 20-329n, INCLUSIVE, AS AMENDED BY THIS
ACT:
(1) "Disposition" or "dispose of" means any
sale, exchange, lease, assignment, award by
lottery or other transaction designed to convey an
interest in a subdivision or parcel, lot, or unit
[thereof] IN A SUBDIVISION when undertaken for
gain or profit;
(2) "Offer" means every inducement,
solicitation or attempt to bring about a
disposition;
(3) "Person" means an individual, firm,
company, association, corporation, limited
liability company, government or governmental
subdivision or agency, business trust, estate,
trust, partnership, unincorporated association or
organization, two or more of any of the foregoing
having a joint or common interest, or any other
legal or commercial entity;
(4) "Broker" means a resident real estate
broker duly licensed [in this state] UNDER THIS
CHAPTER, AS AMENDED BY THIS ACT;
(5) "Salesperson" means any person duly
licensed [in this state] as a real estate
salesperson UNDER THIS CHAPTER, AS AMENDED BY THIS
ACT;
(6) "Purchaser" means a person who acquires an
interest in any lot, parcel or unit in a
subdivision;
(7) "Subdivision" means any improved or
unimproved land or tract of land located outside
this state which is divided or proposed to be
divided into five or more lots, parcels, units,
including time-share units, or interests for the
purpose of disposition, at any time as part of a
common promotional plan. Any land which is under
common ownership or which is controlled by a
single developer or a group of developers acting
in concert, is contiguous in area, and is
designated or advertised as a common unit or known
by a common name, shall be presumed, without
regard to the number of lots, parcels, units or
interests covered by each individual offering, to
be part of a common promotional plan; AND
[(8) "The commission" means the Connecticut
Real Estate Commission;]
[(9)] (8) "Advertising" means publishing or
causing to be published: [(a)] (A) By means of any
newspaper or periodical; [(b)] (B) by means of any
radio or television broadcast; [(c)] (C) by means
of any written or printed or photographic matter
produced by any duplicating process producing ten
copies or more, any information offering for sale
or for the purpose of causing or inducing any
other person to purchase or to acquire an interest
in the title to subdivided lands, including the
land sales contract to be used and any photographs
or drawings or artist's representations of
physical conditions or facilities on the property
existing or to exist; [(d)] OR (D) by means of any
material used in connection with the disposition
or offer of subdivided lands by radio, television,
telephone or any other electronic means. [,
provided, however, that "advertising" shall not be
deemed to] "ADVERTISING" DOES NOT include:
Stockholder communications such as annual reports
and interim financial reports, proxy materials,
registration statements, securities prospectuses,
applications for listing securities on stock
exchanges, and the like; prospectuses, property
reports, offering statements or other documents
required to be delivered to prospective purchasers
by an agency of any other state or the federal
government; all communications addressed to and
relating to the account of any persons who have
previously executed a contract for the purchase of
the subdivider's lands except where directed to
the sale of additional lands; OR press releases or
other communications delivered to newspapers or
other periodicals for general information or
public relations purposes, provided no charge is
made by such newspapers or other periodicals for
the publication or use of any part of such
communications.
Sec. 43. Section 20-329b of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) Unless the method of disposition is
adopted for the purpose of the evasion of the
provisions of sections 20-329a to 20-329m,
inclusive, AS AMENDED BY THIS ACT, or the
provisions of the federal Interstate Land Sales
Full Disclosure Act, said sections shall not apply
to: [the] (1) THE making of any offer or
disposition of any subdivision or lot, parcel,
unit or interest [therein: (1) By] IN ANY
SUBDIVISION (A) BY a purchaser of any subdivision
lot, parcel or unit [thereof] for his own account
in a single or isolated transaction, [; (2)] (B)
to any person who is engaged in the business of
the construction of residential, commercial or
industrial buildings, other than any lot, parcel,
unit or interest in any subdivision, [as defined
by subdivision (7) of section 20-329a,] for
disposition, [; (3)] (C) pursuant to the order of
any court in this state, [; (4)] OR (D) by any
government or government agency; [(5) or to] (2)
any offer or disposition of any evidence of
indebtedness secured by way of any mortgage or
deed of trust of real estate; [(6) or to] (3)
securities or units of interest issued by an
investment trust regulated under the laws of this
state; [(7) to] (4) cemetery lots; [(8) to] OR (5)
the leasing of apartments, offices [,] OR stores,
or the leasing of similar space within any
apartment building, commercial building or
industrial building.
(b) The commission may from time to time,
pursuant to [rules and regulations issued]
REGULATIONS ADOPTED by the Commissioner of
Consumer Protection PURSUANT TO CHAPTER 54, with
the advice and assistance of the commission,
exempt ANY SUBDIVISION from any of the provisions
of sections 20-329a to 20-329m, inclusive, [any
subdivision, if it] AS AMENDED BY THIS ACT, IF THE
COMMISSION finds that the enforcement of said
sections, with respect to such subdivision or
lots, parcels, units or interests IN SUCH
SUBDIVISION, is not necessary in the public
interest and for the protection of purchasers by
reason of the small amount involved or the limited
character of the offering, or because such
property has been registered and approved pursuant
to the laws of any other state.
(c) Any subdivision which has been registered
under the federal Interstate Land Sales Full
Disclosure Act shall be exempt from the provisions
of section 20-329d, except for the narrative
description of the promotional plan for the
disposition of the subdivided lands and copies of
all advertising material which has been prepared
for public distribution by any means of
communications, required under subdivision (2) of
said section, upon THE filing with the commission
OF a copy of an effective statement of record
filed with the Secretary of Housing and Urban
Development together with a filing fee of three
hundred dollars in respect of each subdivision
covered by such effective statement of record. The
fee for filing a consolidation or an additional
number of lots not included in the initial filing
shall be three hundred dollars.
Sec. 44. Section 20-329c of the general
statutes is repealed and the following is
substituted in lieu thereof:
Except as provided in section 20-329b, AS
AMENDED BY THIS ACT, no subdivision or lot,
parcel, unit or interest in any subdivision shall
in any way be offered or disposed of in this state
by any person or broker until: (1) [he] SUCH
PERSON OR BROKER has appointed in writing the
Secretary of the State and his successors in
office to be [his or its] SUCH PERSON'S OR
BROKER'S attorney, upon whom all process, in any
action or proceeding against [him or it] SUCH
PERSON OR BROKER, may be served. [, and in such
writing such] SUCH person or broker shall agree IN
SUCH WRITTEN APPOINTMENT that any process against
[him or it] SUCH PERSON OR BROKER which is served
on [said] THE Secretary of the State shall be of
the same legal force and validity as if served on
such person or broker and that such appointment
shall continue in force as long as any liability
remains outstanding against such person or broker
in this state. Such written appointment shall be
acknowledged before [some] AN officer authorized
to take acknowledgments of deeds and shall be
filed in the office of [said secretary] THE
SECRETARY OF THE STATE, and copies certified by
[him] THE SECRETARY OF THE STATE shall be
sufficient evidence of such appointment and
agreement; [,] (2) [he] SUCH PERSON OR BROKER has
posted with the commission such bond, in favor of
the state, as the commission may require with
surety in such amount as the commission may in its
discretion determine. No bond which may be
required under sections 20-329a to 20-329m,
inclusive, AS AMENDED BY THIS ACT, shall be
accepted for filing unless it is with a surety
company authorized to do business in this state.
Any person aggrieved by an act of the principal
named in such bond in violation of the provisions
of this chapter, AS AMENDED BY THIS ACT, may
proceed on such bond against the principal or
surety therein, or both, to recover damages; [,]
and (3) until such person or broker has received a
license under section 20-329f, AS AMENDED BY THIS
ACT. Any person or broker violating the provisions
of this section shall be fined not less than one
thousand dollars and not more than five thousand
dollars for each offense.
Sec. 45. Section 20-329e of the general
statutes is repealed and the following is
substituted in lieu thereof:
Before the commission [shall issue] ISSUES any
license under sections 20-329a to 20-329m,
inclusive, AS AMENDED BY THIS ACT, to any person
or broker, the Department of Consumer Protection
shall fully investigate all information placed
before [it] THE DEPARTMENT as may be required
pursuant to sections 20-329a to 20-329m,
inclusive, AS AMENDED BY THIS ACT, and [in
addition it] may carry out a physical examination,
investigation or inspection of any subdivision
which is the subject of the application. All
reasonable expenses incurred in carrying out such
examination, investigation or inspection shall be
paid by the applicant and no SUCH license shall be
issued until such expenses have been fully paid.
Sec. 46. Subsection (a) of section 20-329f of
the general statutes is repealed and the following
is substituted in lieu thereof:
(a) The commission shall, upon completion of
the investigation and inspection AS PROVIDED IN
SUBSECTION 20-329e, AS AMENDED BY THIS ACT, but,
in the absence of any agreement to the contrary
between the applicant and the commission, [in any
case] not later than three months from the receipt
of the completed license application, or receipt
of [such] AN effective statement of record filed
with the Secretary of Housing and Urban
Development and filed with the commission pursuant
to subsection (c) of section 20-329b, AS AMENDED
BY THIS ACT, (1) approve or disapprove the
prospectus, property report or offering statement
submitted under subsection (c) of section 20-329b,
AS AMENDED BY THIS ACT, or section 20-329d, as the
case may be, and [shall,] (2) if satisfied, issue
to the applicant upon payment to the commission of
a fee computed as provided in subsection (b), a
license to offer and dispose of [,] in this state
[,] the subdivision or parcels, units or other
interests in any subdivision THAT IS the subject
of the application or such effective statement of
record. Such license shall be valid for one year
and may be renewed annually upon payment to the
commission of a fee, computed as provided in
subsection (b), unless there is a material change
affecting such subdivision or lot, parcels, units
or other interest in any subdivision or the offer
or disposition thereof, in which case all new
facts shall be reported to the commission
immediately. Upon receipt of such report or in the
event that any such material change is discovered
by or comes to the attention of the commission
through other sources, the commission may, after
hearing pursuant to section 20-321, AS AMENDED BY
THIS ACT, take such action as [it] THE COMMISSION
considers necessary, including the suspension or
revocation of such license if justified.
Sec. 47. Section 20-329h of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) No subdivision or lot, parcel, unit or
interest in any subdivision shall be disposed of
except through a broker, provided nothing [herein]
IN THIS SUBSECTION shall be deemed to prohibit any
such broker from employing any salesperson, for
the specific purpose of offering or disposing of,
on behalf of such broker and under contract to
[him] SUCH BROKER, any lot, parcel, unit or
interest in any subdivision. Prior to any offering
or disposition, pursuant to any license granted
under sections 20-329a to 20-329m, inclusive, AS
AMENDED BY THIS ACT, the name of such broker shall
be placed on file with the commission.
(b) A clearly identified copy of the
prospectus, property report or offering statement
shall be given to each purchaser by the broker or
salesperson prior to the execution of any contract
for the disposition of any such property. The
broker or salesperson shall obtain from the
purchaser a signed receipt for a copy of such
prospectus, property report or offering statement
and, if a contract for disposition shall be
entered into, the receipt shall be kept in the
broker's files for a period of seven years and
shall be subject to inspection by the commission.
Upon termination of such broker or salesperson's
employment with the developer, all such records
shall be turned over to the developer within
thirty days and shall be retained by such
developer for the duration of the seven-year
period.
(c) Any contract or agreement for the
disposition of any subdivision or any lot, parcel,
unit or interest in any subdivision, not exempted
under the provisions of section 20-329b, AS
AMENDED BY THIS ACT, where the prospectus,
property report or offering statement has not been
given to the purchaser more than seventy-two hours
in advance of his signing such contract or
agreement, may be revoked by the purchaser within
seventy-two hours after [he] THE PURCHASER signed
[the same] THE CONTRACT OR AGREEMENT or after
receipt by [him] THE PURCHASER of such prospectus,
property report or offering statement, whichever
is the later, and the contract or agreement shall
so provide, except that the contract or agreement
may stipulate that [the foregoing] SUCH revocation
authority shall not apply in the case of a
purchaser who (1) has received the prospectus,
property report or offering statement and
inspected the subdivision in advance of signing
the contract or agreement, and (2) acknowledges by
his signature that [he] THE PURCHASER has made
such inspection and has read and understood the
prospectus, property report or offering statement.
Any such revocation shall be in writing in A form
prescribed by the commission and shall be
communicated to the broker within the time
[limited by this section and all] PERIOD SPECIFIED
IN THIS SUBSECTION. ALL moneys paid by the
purchaser under such revoked contract or agreement
shall be returned [to him] immediately TO THE
PURCHASER by the broker [,] without any
deductions.
Sec. 48. Section 20-329i of the general
statutes is repealed and the following is
substituted in lieu thereof:
Any broker or [real estate] salesperson
[violating] WHO VIOLATES any provision of section
20-329a to 20-329m, inclusive, AS AMENDED BY THIS
ACT, shall, in addition to any other penalty
imposed by said sections, and subject to the
provisions of section 20-321, AS AMENDED BY THIS
ACT, have his real estate broker's or REAL ESTATE
salesperson's license suspended or revoked by the
commission for such time as in the circumstances
[it] THE COMMISSION considers justified.
Sec. 49. Section 20-329j of the general
statutes is repealed and the following is
substituted in lieu thereof:
No member of the commission or any
association, firm or corporation with which a
member is associated shall act as a broker of a
subdivision [,] OR A lot, parcel, unit or interest
[therein] IN A SUBDIVISION or offer or dispose of
a subdivision [,] OR A lot, parcel, unit or
interest [therein] IN A SUBDIVISION THAT IS
required to be approved pursuant to section
20-329d.
Sec. 50. Section 20-329m of the general
statutes is repealed and the following is
substituted in lieu thereof:
The Commissioner of Consumer Protection, with
the advice and assistance of the commission, may
from time to time adopt such regulations, IN
ACCORDANCE WITH CHAPTER 54, as the commissioner
[shall deem] DEEMS necessary [for the carrying] TO
CARRY out and [enforcement of] ENFORCE the
provisions of sections 20-329a to 20-329n,
inclusive, AS AMENDED BY THIS ACT, in the
interests of the public.
Sec. 51. Section 20-329n of the general
statutes is repealed and the following is
substituted in lieu thereof:
All moneys paid or advanced by a purchaser or
lessee or prospective purchaser or prospective
lessee in respect of any lot, parcel, unit or
interest in any subdivision, the disposition of
which is controlled by sections 20-329a, 20-329b,
20-329d, 20-329e, 20-329f, 20-329h and 20-329i, AS
AMENDED BY THIS ACT, or such portion [thereof] OF
SUCH MONEYS as the commission may determine is
sufficient for the protection of the interests of
such purchaser or lessee shall be deposited by the
seller or lessor in an escrow account, approved by
the commission, in a bank doing business in this
state. Such money shall remain in such escrow
account until [(a)] (1) a proper and valid release
is obtained [therefor or (b)] FOR SUCH MONEY, (2)
the owner or subdivider or the purchaser or lessee
has defaulted under their contract for sale or
lease and the commission or [the] A court has made
a determination as to the disposition of such
money, or [(c)] (3) the owner or subdivider or the
seller or lessor orders the return of such money
to such purchaser or lessee.
Sec. 52. Section 20-329o of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) AS USED IN SECTIONS 20-329o TO 20-329bb,
INCLUSIVE, AS AMENDED BY THIS ACT:
(1) [The term "real property securities
dealer" as used in sections 20-329o to 20-329bb,
inclusive,] "REAL PROPERTY SECURITIES DEALER"
means any person, acting as principal or agent,
who engages in the business of [(a)] (A) selling
real property securities [as defined by this
section,] to the public, or [(b)] (B) offering to
accept or accepting funds for continual
reinvestment in real property securities, or for
placement in an account, plan or program whereby
the dealer implies that a return will be derived
from a specific real property sales contract or
promissory note secured directly or collaterally
by a lien on real property which is not
specifically stated to be based upon the
contractual payments thereon.
(2) [The term "real property security" as used
in said sections means: (a) An] "REAL PROPERTY
SECURITY" MEANS (A) AN investment contract made in
connection with the sale of a single promissory
note secured directly or collaterally by a lien on
real property or a single real property sales
contract wherein the real property securities
dealer or his principal agrees to do or implies
that [he] SUCH DEALER OR PRINCIPAL will do any of
the following: [(1)] (i) Guarantee the note or
contract against loss at any time, [or (2)] (ii)
guarantee that payments of principal or interest
will be paid in conformity with the terms of the
note or contract, [or (3)] (iii) assume any
payments necessary to protect the security of the
note or contract, [or (4)] (iv) accept, from time
to time, partial payments toward the purchase of
the note or contract, [or (5)] (v) guarantee a
specific yield or return on the note or contract,
[or (6)] (vi) pay with his own funds any interest
or premium for a period prior to actual purchase
and delivery of the note or contract, [or (7)]
(vii) pay with his own funds any money after the
note or contract falls into arrears, or [(8)]
(viii) repurchase the note or contract; [(b)] (B)
one of a series of promotional notes secured by
liens on separate parcels of real property in one
subdivision or in contiguous subdivisions; [(c)]
OR (C) one of a series of real property sales
contracts pertaining to separate parcels of real
property in one subdivision or in contiguous
subdivisions, all of which are executed by one
person or persons associated together as owners.
As used in this [subsection, the term]
SUBDIVISION, "real property sales contract" does
not include a contract executed more than three
years prior to being offered for sale. Performance
of services in connection with loans or promissory
notes secured directly or collaterally by a lien
on real property or a real property sales
contract, as agent for and at the direction of the
lender, borrower, or purchaser, including, but not
limited to, the payment of taxes, insurance
premiums or costs of foreclosure, if all such
costs, excluding routine office expenses, of such
services are paid by or payable by borrower,
lender or purchaser shall not be construed to be
an investment contract [as defined in subdivision
(a) of subsection (2) of this section] UNDER
SUBPARAGRAPH (A) OF THIS SUBDIVISION. As used in
this [section] SUBDIVISION, "promotional note"
means a promissory note secured by a trust deed
executed on unimproved real property, or executed
after construction of an improvement of the
property but before the first sale of the property
as so improved, or executed as a means of
financing the first purchase of the property as so
improved, and which is subordinate or which by its
terms may become subordinate to any other trust
deed on the property, [; provided that the term
"promotional note"] BUT does not include [(i)] a
note which was executed in excess of three years
prior to being offered for sale or [(ii)] a note
secured by a first trust deed on real property in
a subdivision, which evidences a bona fide loan
made in connection with the financing of the usual
costs of the development of a residential,
commercial, or industrial building or buildings on
the property under a written agreement providing
for the disbursement of the loan funds as costs
are incurred or in relation to the progress of the
work and providing for title insurance insuring
the priority of the security as against mechanic's
liens or for the final disbursement of at least
ten per cent of the loan funds after the
expiration of the period for the filing of
mechanic's liens. [The term real property
security] "REAL PROPERTY SECURITY" does not
include any bond, [or] debenture or note which is
one of a series of notes of equal priority secured
by an interest in the same real property.
(3) [As used in said sections "sale"] "SALE"
or "sell" includes every issuance, creation for
resale, disposition or attempt to dispose of a
real property security for value and includes all
of the following, whether done directly or by
circular letter, advertisement, radio or
television broadcast or otherwise: (A) An offer to
sell, (B) an attempt to sell, (C) a solicitation
of a sale, (D) a contract of sale or (E) an
exchange.
[(4)] (b) The sale to pension, retirement or
similar trust funds, to corporations, to any
[state] bank and trust company, savings bank,
savings and loan association, credit union or
national banking association, to real estate
brokers [,] or to attorneys shall not be deemed a
sale to the public for the purpose of sections
20-329o to 20-329bb, inclusive, AS AMENDED BY THIS
ACT.
Sec. 53. Section 20-329p of the general
statutes is repealed and the following is
substituted in lieu thereof:
No person shall act as a real property
securities dealer in this state without first
having obtained a real estate brokers license
under this chapter, AS AMENDED BY THIS ACT, and
having an endorsement attached [thereto] TO SUCH
LICENSE, in such form as may be prescribed by the
[Real Estate Commission] COMMISSION, stating that
the licensee is entitled to deal in real property
securities. Application for such endorsement shall
be made in writing to [said] THE commission in
such form as [it] THE COMMISSION may prescribe.
Sec. 54. Subsection (b) of section 20-329q of
the general statutes is repealed and the following
is substituted in lieu thereof:
(b) The statement required by subsection (a)
of this section shall be in a form prescribed and
approved by the [Real Estate Commission]
COMMISSION and shall include, but not be limited
to, the following information:
(1) [Legal] THE LEGAL description or address
of the property subject to the lien securing the
note or contract being made or sold;
(2) The name and address of the fee owner of
the property subject to the lien securing the note
or contract being made or sold;
(3) Available information relative to the
ability of the person liable on the obligation to
meet [his] SUCH PERSON'S contractual payments;
(4) Any improvements on the property or the
absence [thereof] OF SUCH IMPROVEMENTS;
(5) Any streets, sewers, water mains, curbs
and gutters on or adjacent to the property or the
absence thereof;
(6) Terms and conditions of the contract or
note being made or sold, including the principal
balance owing thereon, and the status of principal
and interest payments thereon;
(7) A statement of the approximate balloon
payment on the note or contract being made or
sold, WHICH shall appear prominently in words and
figures;
(8) [Insofar as it is] IF available, the terms
and conditions of all prior recorded encumbrances
which constitute liens upon the property, the
principal balance of [said] SUCH encumbrances, and
the status of principal and interest payments
thereon;
(9) Amounts and terms of tax liens and
assessments, [insofar as they are] IF available;
(10) A written statement of the real property
securities dealer's considered opinion of the
current fair market value of the property and of
the equity [therein] IN THE PROPERTY securing the
note or contract or that the purchaser will obtain
his own appraisal [thereof] OF SUCH PROPERTY;
(11) Whether the real property securities
dealer is acting as a principal or as an agent;
(12) A statement that the transaction is in
compliance with the provisions of sections 20-329o
to 20-329bb, inclusive, AS AMENDED BY THIS ACT;
AND
(13) Such other information as the
Commissioner of Consumer Protection, with the
advice and assistance of the [Real Estate
Commission] COMMISSION, may require [from time to
time] by regulation ADOPTED IN ACCORDANCE WITH
CHAPTER 54.
Sec. 55. Section 20-329r of the general
statutes is repealed and the following is
substituted in lieu thereof:
An appraisal of each parcel of real property
which relates to a transaction subject to the
provisions of section 20-329o to 20-329bb,
inclusive, AS AMENDED BY THIS ACT, shall be made
by the real property securities dealer or by an
independent appraiser unless the purchaser of the
obligation to which the parcel relates indicates
[under subdivision (j) of] ON the form required by
subsection (b) of section 20-329q, AS AMENDED BY
THIS ACT, PURSUANT TO SUBDIVISION (10) OF SAID
SUBSECTION, that [he] THE PURCHASER will obtain
his own appraisal. An appraisal by the real
property securities dealer or his agent made
pursuant to this section shall be kept on file for
four years.
Sec. 56. Section 20-329s of the general
statutes is repealed and the following is
substituted in lieu thereof:
Every real property securities dealer shall
file with the [Real Estate Commission] COMMISSION,
ten days prior to use, true copies of all material
which pertains to activities subject to sections
20-329o to 20-329bb, inclusive, AS AMENDED BY THIS
ACT. [Said] THE commission shall approve or
disapprove such material within ten days of
receiving [same] SUCH MATERIAL. If [said] THE
commission fails to give notice to the real
property securities dealer of its disapproval of
any such material within [said period of] ten days
[it] OF RECEIVING SUCH MATERIAL, THE COMMISSION
shall be deemed to have approved [same] SUCH
MATERIAL. No real property securities dealer shall
use any such material in any way after [said] THE
commission gives notice in writing that such
material contains any statement that is false or
misleading or omits to state material information
that is necessary to make [the] ANY statement
[therein] IN SUCH MATERIAL complete and accurate.
Sec. 57. Section 20-329t of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) Every real property securities dealer
shall file with the [Real Estate Commission]
COMMISSION, annually, a report containing
financial statements in accordance with generally
accepted accounting principles, accompanied by an
opinion thereon by a certified public accountant
based upon an audit of the real property
securities dealer's business subject to sections
20-329o to 20-329bb, inclusive, AS AMENDED BY THIS
ACT, which is not materially restricted in scope.
The report shall be filed with the [Real Estate
Commission] COMMISSION within sixty days after the
close of the period of the report unless, for good
cause shown, the commission, in writing, extends
the time [therefor] FOR FILING THE REPORT. The
report shall include, but shall not be limited to:
[the following:] (1) The total number of sales, as
principal or agent, subject to said sections
during the period; (2) information relating to the
receipt and disposition of all funds handled in
connection with transactions subject to said
sections; and (3) the total dollar volume of such
sales.
(b) The Commissioner of Consumer Protection,
with the advice and assistance of the [Real Estate
Commission] COMMISSION, may, BY REGULATION ADOPTED
IN ACCORDANCE WITH CHAPTER 54, require such
[other] ADDITIONAL information in such report as
the commissioner may deem necessary. [from time to
time by regulation.]
(c) In the event that a real property
securities dealer fails to file a report pursuant
to this section the commissioner may cause an
audit to be made and shall charge and collect the
cost of the audit from such dealer.
Sec. 58. Section 20-329u of the general
statutes is repealed and the following is
substituted in lieu thereof:
Whenever the [Real Estate Commission]
COMMISSION finds that [any person is (a)] (1) ANY
PERSON IS violating the provisions of sections
20-329o to 20-329bb, inclusive, AS AMENDED BY THIS
ACT, [(b) that he is conducting his] (2) ANY
PERSON IS CONDUCTING business AS A REAL PROPERTY
SECURITIES DEALER OR ISSUER in an unsafe or
injurious manner, [(c) that] (3) the further sale
of real property securities BY ANY PERSON under
the provisions of said sections would be unfair,
unjust or inequitable, or [(d) that] (4) the
method used by [him in such sales] ANY PERSON IN
THE SALE OF REAL PROPERTY SECURITIES would work a
fraud upon the purchasers, [it] THE COMMISSION may
order [the] SUCH person to desist and refrain from
violating the provisions of said sections or from
further sales OF REAL PROPERTY SECURITIES. Any
person aggrieved by any order issued by the
commission under this section may appeal [against
such order in the manner provided in] UNDER
section [20-322] 20-329aa, AS AMENDED BY THIS ACT.
Sec. 59. Section 20-329v of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) No real property security shall be sold to
the public without either the issuer or the real
property securities dealer first obtaining a
permit from the [Real Estate Commission]
COMMISSION.
(b) Each [applicant] APPLICATION for a permit
to sell any real property securities shall be made
in writing, on such forms and in such manner and
accompanied by such evidence in support of such
application as is prescribed by the commission.
The commission may require such information with
regard to the applicant as [it] THE COMMISSION
deems desirable, with due regard to the paramount
interests of the public as to the honesty,
truthfulness, integrity and competency of the
applicant. The Commissioner of Consumer
Protection, with the advice and assistance of the
[Real Estate Commission] COMMISSION, may, by
regulation ADOPTED IN ACCORDANCE WITH CHAPTER 54,
establish reasonable filing fees, which shall not
be less than forty dollars. [and] SUCH FEES shall
be deposited in the General Fund.
Sec. 60. Section 20-329w of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) If the [Real Estate Commission] COMMISSION
finds, IN CONNECTION WITH AN APPLICATION FILED
UNDER SECTION 20-329v, AS AMENDED BY THIS ACT,
that (1) the proposed plan of business of the
applicant and the proposed sale of real property
securities is fair, just and equitable, (2) [that]
the applicant intends to transact [his] business
fairly and honestly, and (3) [that] the real
property securities which the applicant proposed
to sell are not such as, in the opinion of the
commission will work a fraud upon the purchaser
[thereof] OF SUCH REAL PROPERTY SECURITIES, the
commission shall issue to the applicant a permit
authorizing [him] THE APPLICANT to sell such real
property securities in such amounts and for such
considerations and upon such terms and conditions
as the commission may provide in the permit.
[Otherwise, it] IF THE COMMISSION DOES NOT MAKE
SUCH FINDINGS, THE COMMISSION shall deny the
application, [and] refuse the permit [,] and
notify the applicant in writing of its decision.
The authority to issue a permit UNDER THIS SECTION
shall not empower the commission to authorize the
sale of notes or contracts under a plan which
provides for the establishment of investment
participation pools based upon such notes or
contracts or authorize the issuance of
certificates based upon notes or contracts being
used as collateral for the certificates.
(b) Any applicant aggrieved by the refusal of
a permit UNDER THIS SECTION or the conditions of
any permit ISSUED UNDER THIS SECTION shall be
GIVEN NOTICE AND afforded AN opportunity for
hearing as provided in the regulations
[established] ADOPTED by the Commissioner of
Consumer Protection.
Sec. 61. Section 20-329x of the general
statutes is repealed and the following is
substituted in lieu thereof:
Any person [guilty of any of the following
acts] shall be fined not more than five thousand
dollars or imprisoned not less than one year and
not more than five years, or both fined and
imprisoned, [who] IF SUCH PERSON:
[(a)] (1) In any application to the [Real
Estate Commission] COMMISSION or in any proceeding
before [it] THE COMMISSION, or in any examination,
audit or investigation made by the Department of
Consumer Protection under this chapter, AS AMENDED
BY THIS ACT, knowingly makes any false statement
or representation, or, with knowledge of its
falsity, files or causes to be filed with the
commission any false statement or representation
in a required report;
[(b)] (2) Issues, circulates or publishes, or
causes to be issued, circulated or published any
advertisement, pamphlet, prospectus or circular
concerning any real property security which
contains any statement that is false or
misleading, or IS otherwise likely to deceive a
reader thereof, with knowledge that it contains
such false, misleading or deceptive statement;
[(c)] (3) In any respect wilfully violates or
fails to comply with any provision of sections
20-329o to 20-329bb, inclusive, AS AMENDED BY THIS
ACT, or wilfully violates or fails, omits or
neglects to obey, observe or comply with ALL OR
ANY PART OF any order, decision, demand,
requirement or permit [, or any part or provisions
thereof,] of the commission under said sections;
OR
[(d)] (4) With one or more other persons,
conspires to violate any permit or order issued by
the commission or any provision of said sections.
Sec. 62. Section 20-329z of the general
statutes is repealed and the following is
substituted in lieu thereof:
The Commissioner of Consumer Protection, with
the advice and assistance of the [Real Estate
Commission] COMMISSION, may [make] ADOPT such
reasonable regulations, IN ACCORDANCE WITH CHAPTER
54, as the commissioner deems necessary to carry
out the provisions of sections 20-329o to
20-329bb, inclusive, AS AMENDED BY THIS ACT.
Sec. 63. Section 20-329aa of the general
statutes is repealed and the following is
substituted in lieu thereof:
Any person aggrieved by any decision or order
of the commission UNDER SECTIONS 20-320o TO
20-329bb, INCLUSIVE, AS AMENDED BY THIS ACT, may
appeal [therefrom] FROM SUCH DECISION OR ORDER in
accordance with the provisions of section 4-183.
Sec. 64. Section 20-450 of the general
statutes is repealed and the following is
substituted in lieu thereof:
[For the purposes of] AS USED IN sections
20-450 to 20-462, inclusive, AS AMENDED BY THIS
ACT, UNLESS THE CONTEXT OTHERWISE REQUIRES:
(1) "Association" means (A) an ["association"]
ASSOCIATION, as defined in section 47-202 and an
["association of unit owners"] ASSOCIATION OF UNIT
OWNERS, as defined in section 47-68a and in
section 47-68 of the general statutes, revised to
January 1, 1975, and (B) the mandatory owners
organization of any common interest community, as
defined in section 47-202, which community was not
created under chapter 825 or 828 or under chapter
825 of the general statutes, revised to January 1,
1975. "Association" [shall] DOES not include an
association of a common interest community which
contains only units restricted to nonresidential
use;
(2) "Community association manager" means a
person who provides association management
services;
(3) "Association management services" means
services provided to an association for
remuneration including one or more of the
following: (A) Collecting, controlling or
disbursing funds of the association or having the
authority to do so; (B) preparing budgets or other
financial documents for the association; (C)
assisting in the conduct of or conducting
association meetings; (D) advising or assisting
the association in obtaining insurance; (E)
coordinating or supervising the overall operations
of the association; (F) advising the association
on the overall operations of the association. Any
person licensed in this state under any provision
of the general statutes or rules of court who
provides the services for which he is licensed to
an association for remuneration, shall not be
deemed to be providing association management
services. Any director, officer or other member of
an association who provides services specified in
this [subsection] SUBDIVISION to the association
of which he is a member shall not be deemed to be
providing association management services;
(4) "Commission" means the CONNECTICUT Real
Estate Commission APPOINTED UNDER THE PROVISIONS
OF SECTION 20-311a, AS AMENDED BY THIS ACT;
(5) "Department" means the Department of
Consumer Protection; and
(6) "Person" means an individual, partnership,
corporation, limited liability company or other
legal entity.
Sec. 65. Subsection (b) of section 20-454 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(b) In the event the applicant requests a
hearing within such ten days, the commission shall
give notice of the grounds for its refusal and
shall conduct a hearing concerning such refusal in
accordance with the provisions of chapter 54
concerning contested [matters] CASES.
Sec. 66. Subsection (a) of section 20-456 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(a) The commission may revoke, suspend or
refuse to issue or renew any certificate of
registration as a community association manager or
place a registrant on probation or issue a letter
of reprimand for: (1) Making any material
misrepresentation; (2) making any false promise of
a character likely to influence, persuade or
induce; (3) failing, within a reasonable time, to
account for or remit any moneys coming into his
possession which belong to others; (4) conviction
in a court of competent jurisdiction of this or
any other state of forgery, embezzlement,
obtaining money under false pretenses, larceny,
extortion, conspiracy to defraud, or other like
offense or offenses, provided suspension or
revocation under this subdivision shall be subject
to the provisions of section 46a-80; (5)
commingling funds of others in an escrow or
trustee account; (6) commingling funds of
different associations; (7) any act or conduct
which constitutes dishonest, fraudulent or
improper dealings; or (8) a violation of any
provision of sections 20-450 to 20-462, inclusive,
AS AMENDED BY THIS ACT, or any regulation [issued]
ADOPTED under section 20-461.
Sec. 67. Section 20-500 of the general
statutes is repealed and the following is
substituted in lieu thereof:
As used in sections 20-500 to 20-528,
inclusive, AS AMENDED BY THIS ACT, UNLESS THE
CONTEXT OTHERWISE REQUIRES:
(1) "Appraisal Foundation" means the
not-for-profit corporation referred to in Section
1121 of Title XI of FIRREA.
(2) "Certified appraiser" means a person who
has satisfied the minimum requirements for a
category of certification established by the [Real
Estate Appraisal Commission] COMMISSION by
regulation. Such minimum requirements shall be
consistent with guidelines established by the
Appraisal Qualification Board of the Appraisal
Foundation. The categories of certification shall
include, but may be modified by the [Real Estate
Appraisal Commission] COMMISSION thereafter, one
category denoted as "certified residential
appraiser" and another denoted as "certified
general appraiser".
(3) "Tenured appraiser" means a person who
held a real estate appraisal license as of January
1, 1991, and has satisfied the minimum
requirements for a license as a tenured appraiser
as established by the [Real Estate Appraisal
Commission] COMMISSION by regulation. The
categories of tenured appraisal shall include one
category denoted as "tenured residential
appraiser" and another denoted as "tenured general
appraiser".
(4) "Commission" means the CONNECTICUT Real
Estate Appraisal Commission APPOINTED UNDER THE
PROVISIONS OF SECTION 20-502, AS AMENDED BY THIS
ACT.
(5) "Engaging in the real estate appraisal
business" means the act or process of estimating
the value of real estate for a fee or other
valuable consideration.
[(6) "Federally related transaction" has the
meaning given by Section 1121 of Title XI of
FIRREA.]
[(7)] (6) "FIRREA" means the Financial
Institutions, Reform, Recovery and Enforcement Act
of 1989, P.L. 101-73, 103 Stat. 183.
[(8)] (7) "Licensed appraiser" means a person
who has satisfied the minimum requirements for a
category of licensing, other than licensed tenured
appraiser, established by the [Real Estate
Appraisal Commission] COMMISSION by regulation.
Such minimum requirements may be consistent with
guidelines established by the Appraisal
Qualification Board of the Appraisal Foundation.
The categories of licensing shall include, but may
be modified by the [Real Estate Appraisal
Commission] COMMISSION thereafter, one category
denoted as "licensed residential appraiser" and
another denoted as "licensed general appraiser".
[(9)] (8) "Person" means any individual,
partnership, association, limited liability
company or corporation.
[(10)] (9) "Provisional appraiser" means a
person engaged in the business of estimating the
value of real estate for a fee or other valuable
consideration under the supervision of a licensed
or certified real estate appraiser and who meets
the minimum requirements, if any, established by
the [Real Estate Appraisal Commission] COMMISSION
by regulation for provisional appraiser status.
[(11)] (10) "Real estate appraiser" means a
person engaged in the business of estimating the
value of real estate for a fee or other valuable
consideration.
Sec. 68. Subsection (b) of section 20-502 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(b) The commission shall consist of eight
persons, electors of the state, appointed by the
Governor. Five of the members shall be certified
appraisers. Three of the members shall be public
members. Not more than a bare majority of [said]
THE commission shall be members of the same
political party and there shall be at least one
member from each congressional district.
Sec. 69. Section 20-504 of the general
statutes is repealed and the following is
substituted in lieu thereof:
The Commissioner of Consumer Protection, with
advice and assistance from the commission, may
[make] ADOPT such reasonable regulations, in
accordance with chapter 54, as the commissioner
deems necessary to carry out the provisions of
sections 20-500 to 20-528, inclusive, AS AMENDED
BY THIS ACT. Such regulations shall, at a minimum,
address real estate appraiser qualifications,
continuing education, discipline, real estate
appraiser certification, licensing, tenured
licensing and provisional licensing applications
and renewals and shall require any real estate
appraiser to comply with generally accepted
standards of professional appraisal practice as
described in the Uniform Standards of Professional
Appraisal Practice issued by the Appraisal
Standards Board of the Appraisal Foundation
pursuant to Title XI of FIRREA. The regulations
shall further require any real estate appraiser
who wishes to enter in or upon any premises not
the subject of appraisal for purposes of
estimating the value of comparable real estate to
obtain the permission of the owner or occupier of
the premises and to identify himself as an
appraiser.
Sec. 70. Section 20-505 of the general
statutes is repealed and the following is
substituted in lieu thereof:
The chairman OF THE COMMISSION shall be bonded
under the provisions of section 4-20, in such sum
as the State Insurance Purchasing Board may
prescribe, with THE condition that [he] THE
CHAIRMAN faithfully perform the duties of his
office and account for all funds received [under
color of his] PURSUANT TO SUCH office.
Sec. 71. Section 20-508 of the general
statutes is repealed and the following is
substituted in lieu thereof:
Any person possessing the qualifications
prescribed in sections 20-500 to 20-528,
inclusive, AS AMENDED BY THIS ACT, and in any
regulations adopted in conformity [thereto] WITH
SAID SECTIONS, who desires to engage in the real
estate appraisal business shall make application
TO THE COMMISSION, in writing, as [hereinafter]
provided IN SECTION 20-509, AS AMENDED BY THIS
ACT, [to the commission] for the specific
certification, license, tenured license or
provisional license desired.
Sec. 72. Section 20-509 of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) Certifications, licenses, tenured licenses
and provisional licenses UNDER SECTIONS 20-500 TO
20-528, INCLUSIVE, AS AMENDED BY THIS ACT, shall
be granted only to persons who bear a good
reputation for honesty, truthfulness and fair
dealing and who are competent to transact the
business of a real estate appraiser in such manner
as to safeguard the interests of the public.
(b) Each application for a certification,
license, tenured license or provisional license
UNDER SAID SECTIONS, or for a renewal thereof,
shall be made in writing, on such forms and in
such manner as is prescribed by the Department of
Consumer Protection and accompanied by such
evidence in support of such application as is
prescribed by the commission. The commission may
require such information with regard to an
applicant as [it] THE COMMISSION deems desirable,
with due regard to the paramount interests of the
public, as to the honesty, truthfulness, integrity
and competency of the applicant and, where the
applicant is a corporation, association or
partnership, as to the honesty, truthfulness,
integrity and competency of the officers of such
corporation or the members of such association or
partnership.
(c) [Application fees, paid the commission,
shall be] FEES FOR APPLICATIONS UNDER THIS SECTION
SHALL BE PAID TO THE COMMISSION AS FOLLOWS: Sixty
dollars for certification; forty dollars for
licensing; forty dollars for tenured licensing and
forty dollars for provisional licensing. The
payment of an application fee shall entitle an
applicant who otherwise meets the appropriate
requirements established by the commission to take
the appropriate written examination, where
applicable, four times within the one-year period
from the date of payment. In addition to the
application fee, applicants taking an examination
administered by a national testing service shall
be required to pay directly to such testing
service an examination fee covering the cost of
such examination.
Sec. 73. Section 20-510 of the general
statutes is repealed and the following is
substituted in lieu thereof:
In order to determine the competency of any
applicant for a real estate appraiser's
certification or license, the commission shall,
and, in the case of an applicant for a provisional
license, may subject such applicant to personal
written examination as to [his] THE APPLICANT'S
competency to act as a real estate appraiser. Such
examination shall be prepared by the Department of
Consumer Protection or by a national testing
service designated by the Commissioner of Consumer
Protection, shall be administered to applicants by
the Department of Consumer Protection or by such
testing service at such times and places as [said]
THE commissioner may deem necessary and shall be
consistent with guidelines established by the
Appraisal Qualification Board of the Appraisal
Foundation. The commission may waive the written
examination requirement in the case of an
applicant who, in the opinion of the commission,
has taken an equivalent written examination in
another state and has received a score deemed
satisfactory by the commission.
Sec. 74. Subsection (e) of section 20-511 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(e) Any person whose application has been
filed as [herein] provided IN THIS SECTION AND
SECTION 20-509, AS AMENDED BY THIS ACT, who is
refused a certification, license, tenured license
or provisional license shall be given notice and
afforded AN opportunity for hearing as provided in
the regulations [established] ADOPTED by the
Commissioner of Consumer Protection.
Sec. 75. Section 20-512 of the general
statutes is repealed and the following is
substituted in lieu thereof:
The Commissioner of Consumer Protection, with
the advice and assistance of the commission, may
[make] ADOPT such reasonable regulations, IN
ACCORDANCE WITH CHAPTER 54, as the commissioner a
may deem necessary relating to the approval of
schools offering courses in real estate appraisal
principles and practice and related subjects, the
content of such courses or programs and the
advertising to the public of the services of such
schools. Such regulations shall not require
approval of instructors at such schools.
Sec. 76. Section 20-514 of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) No certification, license, tenured license
or provisional license, as the case may be, shall
be denied by the commission UNDER SECTIONS 20-500
TO 20-528, INCLUSIVE, AS AMENDED BY THIS ACT, to
any applicant who has been convicted of forgery,
embezzlement, obtaining money under false
pretenses, extortion, criminal conspiracy to
defraud, or other like offense or offenses, or to
any association or partnership of which such
person is a member, or to any corporation of which
such person is an officer or in which as a
stockholder such person has or exercises a
controlling interest either directly or indirectly
except in accordance with the provisions of
section 46a-80.
(b) No certification, license, tenured license
or provisional license, as the case may be, shall
be issued by the Department of Consumer Protection
UNDER SECTIONS 20-500 TO 20-528, INCLUSIVE, AS
AMENDED BY THIS ACT, to any applicant (1) whose
application for a certification, license, tenured
license or provisional license, as the case may
be, has, within one year prior to the date of his
application, [hereunder,] been rejected in this
state, in any other state or in the District of
Columbia or (2) whose certification, license,
tenured license or provisional license, as the
case may be, has, within one year prior to the
date of his application, [hereunder,] been revoked
in this state, in any other state or in the
District of Columbia.
(c) No certification, license, tenured license
or provisional license, as the case may be, shall
be issued UNDER SECTIONS 20-500 TO 20-528,
INCLUSIVE, AS AMENDED BY THIS ACT, to any person
who has not attained the age of eighteen years.
Sec. 77. Section 20-515 of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) A nonresident of this state may become a
real estate appraiser by conforming to all of the
provisions of sections 20-500 to 20-528,
inclusive, AS AMENDED BY THIS ACT. The commission
shall recognize a current, valid certification,
license or provisional license, as the case may
be, issued to a currently practicing, competent
real estate appraiser by another state as
satisfactorily qualifying him for a certification,
license or provisional license, as the case may
be, as a real estate appraiser under said
sections, provided: [the] (1) THE laws of the
state of which he is a resident require that
applicants for certifications, licenses or
provisional licenses, as the case may be, as real
estate appraiser permit certifications, licenses
or provisional licenses to be issued to residents
of [the state of Connecticut] THIS STATE,
certified, licensed or provisionally licensed, as
the case may be, under said sections, without
examination, and [provided further that] (2) the
certification, licensing and provisional licensing
requirements of [such] THE state OF WHICH HE IS A
RESIDENT are substantially similar to, or higher
than those of this state, including establishment
of competency by written examination in the case
of licensed and certified appraisers, and such
appraiser has no disciplinary proceeding or
unresolved complaint pending against him. If the
applicant is a resident of a state which does not
have such requirements, such applicant shall be
certified, licensed or provisionally licensed by a
state in accordance with Section 1116 of Title XI
of FIRREA.
(b) Every nonresident applicant shall file an
irrevocable consent that suits and actions may be
commenced against such applicant in the proper
court in any judicial district of the state in
which a cause of action may arise or in which the
plaintiff may reside, by the service of any
process or pleading, authorized by the laws of
this state, on the chairman of the commission,
such consent stipulating and agreeing that such
service of such process or pleading shall be taken
and held in all courts to be as valid and binding
as if service had been made upon such applicant in
[the state of Connecticut] THIS STATE. If any
process or pleadings mentioned in this chapter, AS
AMENDED BY THIS ACT, are served upon [said] THE
chairman OF THE COMMISSION, it shall be by
duplicate copies, one of which shall be filed in
the office of the commission, and the other
immediately forwarded by registered or certified
mail, to the applicant against whom such process
or pleadings are directed, at the last-known
address of such applicant as shown by the records
of the commission. [, and no] NO default in any
such proceedings or action shall be taken unless
it appears by affidavit of the chairman of the
commission that a copy of the process or pleading
was mailed to the defendant as [herein] required
IN THIS SUBSECTION, and no judgment by default
shall be taken in any such action or proceeding
within twenty days after the date of mailing of
such process or pleading to the nonresident
defendant.
(c) The Commissioner of Consumer Protection,
with the advice and assistance of the commission,
pursuant to Section 1122(a) of Title XI of FIRREA,
shall [make] ADOPT such reasonable regulations, IN
ACCORDANCE WITH CHAPTER 54, as the commissioner
deems necessary to effectuate certification,
licensing and provisional licensing of nonresident
appraisers. Such certification, licensing and
provisional licensing shall be recognized on a
temporary basis in this state. The fee for a
temporary certification, license or provisional
license shall be [the sum of] one hundred fifty
dollars. The temporary certification, license or
provisional license shall be effective for ninety
days from issuance and for only one appraisal
assignment.
Sec. 78. Subsection (b) of section 20-517 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(b) The commission shall authorize the
Department of Consumer Protection to issue a
renewal certification, license, tenured license or
provisional license, as the case may be, to any
applicant who possesses the qualifications
specified and otherwise has complied with the
provisions of sections 20-500 to 20-528,
inclusive, AS AMENDED BY THIS ACT, and any
regulation adopted in conformity [thereto] WITH
SAID SECTIONS.
Sec. 79. Section 20-518 of the general
statutes is repealed and the following is
substituted in lieu thereof:
The Department of Consumer Protection may,
upon the request of the commission or upon the
verified complaint in writing of any person,
provided such complaint, or such complaint
together with evidence, documentary or otherwise,
represented in connection [therewith] WITH SUCH
COMPLAINT, shall make out a prima facie case,
investigate the actions of any real estate
appraiser or any person who assumes to act in any
of such capacities within this state. The
commission shall have the power temporarily to
suspend or permanently to revoke any
certification, license, tenured license or
provisional license, as the case may be, issued
under the provisions of sections 20-500 to 20-528,
inclusive, AS AMENDED BY THIS ACT, and in addition
to, or in lieu of, such suspension or revocation,
may, in its discretion, impose a fine of not more
than one thousand dollars for the first offense at
any time when, after proceedings as provided in
section 20-519, AS AMENDED BY THIS ACT, it finds
that the certification holder, licensee, tenured
licensee or provisional licensee has by false or
fraudulent misrepresentation obtained a
certification, license, tenured license or
provisional license, as the case may be, or that
the certification holder, licensee, tenured
licensee or provisional licensee is guilty of any
of the following: (1) Making any material
misrepresentation; (2) making any false promise of
a character likely to influence, persuade or
induce; (3) acting for more than one party in a
transaction without the knowledge of all parties
for whom he acts; (4) conviction in a court of
competent jurisdiction of this or any other state
of forgery, embezzlement, obtaining money under
false pretenses, larceny, extortion, conspiracy to
defraud, or other like offense or offenses,
provided suspension or revocation under this
subdivision shall be subject to the provisions of
section 46a-80; (5) any act or conduct which
constitutes dishonest, fraudulent or improper
dealings; (6) a violation of any provision of
sections 20-500 to 20-528, inclusive, AS AMENDED
BY THIS ACT, or any regulation [issued] ADOPTED
under said sections.
Sec. 80. Section 20-519 of the general
statutes is repealed and the following is
substituted in lieu thereof:
Before refusing, suspending or revoking any
certification, license, tenured license or
provisional license, or imposing any fine, the
commission shall give notice and afford AN
opportunity for hearing as provided in the
regulations [established] ADOPTED by the
Commissioner of Consumer Protection.
Sec. 81. Section 20-521 of the general
statutes is repealed and the following is
substituted in lieu thereof:
Any certification holder, licensee, tenured
licensee or provisional licensee convicted of a
violation of any of the offenses enumerated in
subdivision (4) of section 20-518, AS AMENDED BY
THIS ACT, shall incur a forfeiture of his
certification, license, tenured license or
provisional license and all moneys that may have
been paid [therefor] FOR SUCH CERTIFICATION,
LICENSE, TENURED LICENSE OR PROVISIONAL LICENSE.
The clerk of any court [wherein] IN WHICH such
conviction has been [had] RENDERED shall forward
to the commission without charge a certified copy
of such conviction. The commission, upon the
receipt of a copy of the judgment of conviction,
shall, [within ten days thereafter] NOT LATER THAN
TEN DAYS AFTER SUCH RECEIPT, notify the
certification holder, licensee, tenured licensee
or provisional licensee, in writing, of the
revocation of his certification, license, tenured
license or provisional license, as the case may
be, which notice shall be conclusive of [the
revocation thereof] SUCH REVOCATION. Application
for reinstatement of such certification, license,
tenured license or provisional license shall be
subject to the provisions of section 46a-80.
Sec. 82. Subsection (a) of section 20-523 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(a) Any person who engages in the [business of
real estate appraiser] REAL ESTATE APPRAISAL
BUSINESS without obtaining a certification,
license, tenured license or provisional license,
as the case may be, as [herein] provided IN
SECTIONS 20-500 TO 20-528, INCLUSIVE, AS AMENDED
BY THIS ACT, shall be fined not more than one
thousand dollars or imprisoned not more than six
months or both, and shall be ineligible to obtain
a certification, license, tenured license or
provisional license for one year from the date of
conviction of such offense, except the commission,
in its discretion, may grant a certification,
license, tenured license or provisional license,
as the case may be, to such person within such
one-year period upon application and after a
hearing [thereon] ON SUCH APPLICATION.
Sec. 83. Section 20-524 of the general
statutes is repealed and the following is
substituted in lieu thereof:
The commission shall submit to the Governor,
as provided in section 4-60, a report of its
official acts under sections 20-500 to 20-528,
inclusive, AS AMENDED BY THIS ACT. The commission
shall keep a record of proceedings and orders
pertaining to the matters under its jurisdiction
and of certifications, licenses, tenured licenses
or provisional licenses granted, refused,
suspended or revoked by it and of all reports sent
to its office. The commission shall furnish
without charge, for official use only, certified
copies of certifications, licenses, tenured
licenses, provisional licenses and documents
relating thereto, to officials of [the] THIS state
or any municipality [therein] IN THIS STATE, to
officials of any other state and to any court in
this state. Any certified copy of any document or
record of the commission, attested as a true copy
by the chairman of the commission, shall be
competent evidence in any court of this state of
the facts [therein] contained IN SUCH DOCUMENT OR
RECORD.
Sec. 84. Section 20-525 of the general
statutes is repealed and the following is
substituted in lieu thereof:
The Department of Consumer Protection, at the
request of the commission, may periodically
compile and publish a bulletin containing
information and material relating to the
commission, its functions and certifications,
licenses, tenured licenses, provisional licenses
and other information and material relating to the
real estate appraisal industry which might be of
help and interest to certificate holders,
licensees, tenured licensees or provisional
licensees in their service of the public. The
commission may also request the department to
publish such information and material in any
established periodical published in the state if,
in the opinion of [that] THE commission, such form
of publication would ensure the widest
dissemination of such information and material to
certification holders, licensees, tenured
licensees and provisional licensees and the
public.
Sec. 85. Subsection (a) of section 20-528 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(a) On or before May 1, 1994, the Department
of Consumer Protection shall adopt regulations, IN
ACCORDANCE WITH CHAPTER 54, to implement the
purposes of sections 20-311 to 20-311b, inclusive,
20-311d, 20-311e, 20-312, 20-312b to 20-314b,
inclusive, 20-316, 20-317, 20-319, 20-320 to
20-324, inclusive, 20-325, 20-326, 20-327a to
20-329, inclusive, and 20-500 to 20-526,
inclusive.
Sec. 86. Section 21a-6 of the general
statutes, as amended by section 8 of public act
97-166, is repealed and the following is
substituted in lieu thereof:
The following boards shall be within the
Department of Consumer Protection:
(1) The Architectural Licensing Board
established under chapter 390;
(2) Repealed by P.A. 93-151, S. 3, 4;
(3) The examining boards for electrical work;
plumbing and piping work; heating, piping and
cooling work; elevator installation, repair and
maintenance work; and fire protection sprinkler
systems work established under chapter 393;
(4) The State Board of Television and Radio
Service Examiners established under chapter 394;
(5) The Commission of Pharmacy established
under chapter 400j;
(6) The State Board of Landscape Architects
established under chapter 396;
(7) The State Tree Protection Examining Board
established under sections 23-61a to 23-65,
inclusive;
(8) The State Board of Examiners for
Professional Engineers and Land Surveyors
established under chapter 391;
(9) Repealed by P.A. 80-484, S. 175, 176;
(10) The Connecticut Real Estate Commission
established under chapter 392, AS AMENDED BY THIS
ACT;
(11) The Connecticut Real Estate Appraisal
Commission established under chapter [400j] 400g,
AS AMENDED BY THIS ACT; and
(12) The State Board of Examiners of Shorthand
Reporters established under sections 1 to 7,
inclusive, of [this act] PUBLIC ACT 97-166.
Approved April 24, 1998