OLR Bill Analysis
SB 481 (File 127, as amended by Senate "A")*
AN ACT CONCERNING PSYCHOLOGICALLY IMPACTED REAL ESTATE.
The bill prohibits lawsuits against a real estate owner, his agent, or any agent of the transferee for failing to disclose a nonmaterial fact concerning real property to the transferee. The bill defines a "nonmaterial fact concerning real property" as a fact, set of facts, or circumstance surrounding real estate, which includes, but is not limited to the fact that: (1) an occupant is or has been infected with a disease on the list of reportable diseases issued by the public health commissioner pursuant to law or (2) the property was at any time suspected to have been the site of a death or felony.
The bill specifies that a nonmaterial fact concerning real property is not a material fact that must be disclosed in a real estate transaction. It eliminates a similar provision in current law that the existence of any fact or circumstance that may have a psychological impact on a purchaser or lessee is not a material fact that must be disclosed in a real estate transaction.
The bill also eliminates the definition of "psychologically impacted," which means the effect of certain circumstances surrounding real estate that include the fact that: (1) an occupant of real property is, was, or was at any time suspected to be infected with human immunodeficiency syndrome (HIV) or (2) the property was at any time suspected to have been the site of a homicide, other felony, or a suicide. Finally, the bill eliminates the prohibition against suing a real estate owner, his agent, or any agent of the transferee for failing to disclose to the transferee that the property was psychologically impacted.
*Senate Amendment "A" eliminates the original bill (File 127), which limited the definition of psychologically impacted real estate byeliminating as a circumstance that would have a psychological impact on a purchaser or renter of property the fact that someone lives or lived at the property who has, had, or was at any time suspected to have HIV. It also adds the provisions concerning a "nonmaterial fact concerning real property. "
EFFECTIVE DATE: October 1, 2004
Request for Custom Written Disclosures
Under current law, unchanged by the bill, if a purchaser or lessee of real estate, who was in the process of making a bona fide offer, advises an owner or his agent, in writing, that knowledge that the property was at any time suspected to have been the site of a homicide, other felony, or a suicide is important to his decision to purchase or lease the property, the owner through his or her agent must report any findings to the purchaser or lessee, in writing subject to and consistent with applicable laws of privacy. If the owner refuses to disclose such information, his agent must advise the purchaser or lessee in writing (CGS § 20-329ee).
Insurance and Real Estate Committee
Joint Favorable Report