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SEVENTH EDITION Powered By Docstoc
                    CONNECTICUT LAW
           UPDATE* 
                                          SEPTEMBER 30, 2005
Course Applications – have been streamlined. See actual documents. Real Estate Commission adopted
procedure, September 2005.

Course Fire Marshal Certificates – Fire marshal certificate not required as part of course application if
course to be held in hotel, restaurant, or other public building (defined in CGS Section 19-13-B105).
Effective October 1, 2005. P.A. 05-48. Fire marshal certificate still required for course to be held in non-
public buildings, but not submitted as part of course application. Real Estate Commission adopted
procedure, September 2005.

School Application – has been streamlined; also requests information on tuition and refund policies. See
actual document. Real Estate Commission adopted procedure, September 2005.

Distance Education Course Approval – only ARELLO primary course provider approval required (CE
courses only). Real Estate Commission adopted procedure, September 2005.

Commission May Not Be Earned If Corporation Not Duly Licensed – The Connecticut Supreme
Court held that a corporation is precluded from bringing an action to recover a real estate commission if
the corporation was not duly licensed as a real estate broker. In the case, president of corporation was not
duly licensed as a broker, in violation of the law that required all active owners and officers of licensed
broker entity be licensed brokers. Court also recognized the license law allows recovery of commission
by a licensee if it would be inequitable to not do so. Location Realty v. General Financial Services, 273
Conn. 766 (2005). Full text of decision can be found at

Ownership of Real Estate Brokerage Companies – Permits licensed salespersons to be active owners,
members, partners, and officers in a licensed real estate company (eliminates requirement that such active
participants be licensed as a real estate broker). Licensed brokers must own or control at least 51% of the
brokerage company. Fines for unlicensed entities reduced from $2000 to $1000. Effective October 1,
2005. P.A. 05-115.

Amnesty for Unlicensed Entities – Legal entities run as part of a real estate brokerage business must
obtain a real estate broker license (example: limited liability companies, corporations and partnerships).
Many real estate licensees and companies have not properly licensed such entities. Violation of the
requirement can result in fines for every month of non-compliance. The Commission has granted an
amnesty period through December 31, 2005 whereby brokers can license their legal entities without
incurring fines.
              Katherine A. Pancak, Associate Professor, Center for Real Estate and Urban Economic Studies,
                                      School of Business, University of Connecticut
New Uniform Residential Appraisal Report – Fannie Mae now has a changed and longer URAR form.
Overview of changes can be found at .
Form can be downloaded at .
Mandatory for use in Fannie Mae appraisals in November 2005.

Justice Department Sues NAR for Limiting Competition – Justice Antitrust Division claims that the
NAR policy allowing real estate agents to withhold listings from Internet-based brokers is illegally anti-
competitive.     September 8, 2005.             See Department of Justice Press Release at .

Conveyance Tax – 0.25% municipal conveyance tax rate extended until July 1, 2007 (rate was scheduled
to drop back to 0.11% on July 1, 2005). Also allows the 18 towns that have the right to add an additional
0.25% the option of adding up to 0.25%. Effective immeidately. P.A. 05-268.

Condominium Resale Fees – fee can not exceed $125 (formerly $75) and should reflect actual cost to
prepare. Additional $10 fee allowed if documents delivered within three days. Effective October 1, 2005.
P.A. 05-125.

Absentee Landlord Registration – Absentee landlords must register their residential address with
municipalities where rental property is located (if landlord is legal entity must file residential address of
agent in charge of building). Penalties of $250 - $1000 for noncompliance. Effective October 1, 2005.
P.A. 05-223.

Rental Heat Surcharges – If a lease states that the landlord is responsible for paying for heat and
utilities, the landlord can not additionally require that a tenant pay a surcharge. Effective October 1, 2005.
P.A. 05-56.

Carbon Monoxide Detectors Required – in all new one-two family residential buildings.                     For
Certificate of Occupancy issued on or after October 1, 2005. P.A. 05-161.

Assessment of Inland Wetland Buffers – If a wetland permit requires land to serve as a buffer,
municipality must assess land as it were wetlands. Also changes conveyance tax implications of “490”
farm, forest, and open space which is assessed in current use. Effective July 1, 2005. P.A. 05-190.

Eminent Domain Court Decision - The U.S. Supreme Court ruled that municipalities have the right to
determine what constitutes a "public purpose" for eminent-domain-seizure purposes, even if that means
taking private property and giving it to private developers who promise to increase the local tax base or
increase employment. Kelo v. City of New London, June 23, 2005. Full text of decision can be found at . Connecticut governor and legislature have entertained
the passing a law that would limit the use of eminent domain for private projects. Certain Connecticut
municipalities have also debated the issue of limiting takings fro private development.

         text of 2005 CT Public Acts can be found at 

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