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House Bill No. 6432

Public Act No. 17-169

AN ACT CONCERNING DISCLOSURES BY REAL ESTATE BROKERS AND REAL ESTATE SALESPERSONS IN COMMERCIAL TRANSACTIONS AND NOTICES OF COMMISSION RIGHTS.

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

Section 1. Section 20-325d of the general statutes is repealed and the following is substituted in lieu thereof (Effective January 1, 2018):

[On and after January 1, 1995, a real estate broker or real estate salesperson licensed under this chapter, who is acting as an agent of the seller or lessor, shall make a written disclosure of whom he represents in a real estate transaction to prospective purchasers and lessees at the beginning of the first personal meeting concerning the prospective purchaser's or lessee's specific needs, unless such prospective purchaser or lessee is represented by another real estate broker or real estate salesperson licensed under this chapter. Such disclosure shall be signed by the prospective purchaser or lessee and attached to any offer or agreement to purchase or lease signed by the prospective purchaser or lessee. Whenever any real estate broker or real estate salesperson intends to act as an agent for the prospective purchaser or lessee, he shall disclose such intended representation to the seller or lessor at the beginning of the first personal meeting with the seller or lessor concerning the seller's or lessor's real property, unless such seller or lessor is represented by another real estate broker or real estate salesperson licensed under this chapter. On or before January 1, 1995, the Commissioner of Consumer Protection, shall adopt such regulations in accordance with chapter 54 as the commissioner deems necessary to carry out the provisions of this section.] On and after January 1, 2018, a real estate broker or real estate salesperson licensed under this chapter who represents a seller, lessor, prospective purchaser or lessee in a real estate transaction shall disclose, in writing, the identity of his or her client to any party to the transaction who is not represented by another real estate broker or real estate salesperson licensed under this chapter. The real estate broker or real estate salesperson shall make the disclosure required under this section: (1) If the transaction concerns residential real property, as defined in section 20-325c, (A) at the beginning of the first personal meeting concerning the prospective purchaser's or lessee's specific needs in the transaction, or (B) at the beginning of the first personal meeting with the seller or lessor concerning the seller's or lessor's real property; or (2) if the transaction is a commercial real estate transaction, as defined in section 20-311, before the prospective purchaser or lessee signs the purchase contract or lease. Such disclosure shall be signed by a prospective purchaser or lessee and attached to any offer or agreement to purchase or lease signed by a prospective purchaser or lessee. The Commissioner of Consumer Protection shall adopt such regulations, in accordance with chapter 54, as the commissioner deems necessary to carry out the provisions of this section.

Sec. 2. Subsection (b) of section 20-325k of the general statutes is repealed and the following is substituted in lieu thereof (Effective January 1, 2018):

(b) A real estate broker shall be entitled to the protections afforded by this section only upon the broker's recording a notice of commission rights in the land records in the office of the town clerk in the town in which the real property or leasehold interest is located not later than [thirty] sixty days after the execution of the lease, [or] the tenant's occupancy of the leased premises, or the rent commencement date specified in the lease, whichever is later. The notice of commission rights shall (1) be filed before conveyance of the real property, (2) be signed by the real estate broker or by a person expressly authorized to sign on behalf of the broker, and (3) be in substantially the following form:

NOTICE OF COMMISSION RIGHTS

The undersigned licensed Connecticut real estate broker does hereby publish this NOTICE OF COMMISSION RIGHTS to establish that the lease referenced below was procured by a real estate broker pursuant to a written brokerage commission agreement providing for the payment or promise of payment of compensation for brokerage services.

Owner: ....

Landlord: ....

Tenant: ....

Lease date: ....

Lease term: ....

Project or building name (if any): ....

Real estate broker name ....

Address ....

Telephone number ....

Real estate license number ....

Approved July 7, 2017