Sec. 20-320. Suspension or revocation of licenses. Fines. The Department of
Consumer Protection may, upon the request of the commission or upon the verified
complaint in writing of any person, if such complaint, or such complaint together with
evidence, documentary or otherwise, presented in connection 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 commission may temporarily suspend or permanently revoke any license
issued under the provisions of this chapter 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, 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 instrument, where such instrument has been prepared by
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; (13) a
violation of any provision of this chapter or any regulation adopted under this chapter.
Any fine collected pursuant to this section shall be deposited in the Real Estate Guaranty
Fund established pursuant to section 20-324a.
(1953, 1955, S. 2348d; 1957, P.A. 39; 1963, P.A. 100; 1967, P.A. 460, S. 9; P.A. 74-286, S. 1, 3; P.A. 76-26, S. 1, 3;
76-168, S. 2, 4; P.A. 77-614, S. 227, 610; P.A. 83-512, S. 2; P.A. 88-329, S. 10, 15; P.A. 89-347, S. 2; P.A. 90-332, S. 14,
32; P.A. 91-229, S. 11, 19; P.A. 93-354, S. 15, 54; P.A 94-36, S. 41, 42; 94-240, S. 2, 14; P.A. 98-10, S. 16; P.A. 99-231,
S. 3, 7; June 30 Sp. Sess. P.A. 03-6, S. 146(d); P.A. 04-169, S. 17; 04-189, S. 1.)
History: 1963 act added Subdiv. (12); 1967 act amended Subdiv. (12) to make violation of any provision of chapter
grounds for revocation or suspension and updated statute deleting references to "commissioner" and substituting "commission"; P.A. 74-286 rewrote Subdiv. (8), replacing convictions within ten years with convictions within five years as ground
for suspension or revocation of license and adding "confinement, or probation or parole for such conviction, within five
years ..." as ground for suspension or revocation; P.A. 76-26 added provision allowing imposition of fine in addition to or
in lieu of suspension or revocation of license for first offense; P.A. 76-168 deleted the words "in performing or attempting
to perform any of the actions enumerated in section 20-311", immediately before Subdiv. (1) and revised Subdiv. (8)
limiting suspension or revocation for license for conviction as provided in Sec. 4-61o (later transferred to Sec. 46a-80)
rather than using five-year period as measure of applicability and deleting reference to confinement, probation or parole as
measure of applicability; P.A. 77-614 transferred investigatory power from commission to consumer protection department,
acting on commission's request and referred in Subdiv. (12) to regulations "under this chapter" rather than to regulations
of commission, effective January 1, 1979; P.A. 83-512 increased the maximum fine from five hundred to one thousand
dollars; P.A. 88-329 made grounds for suspension or revocation of license and fines for brokers and salesmen applicable
to real estate appraisers and residential appraisers, effective July 1, 1989; P.A. 89-347 inserted new Subdiv. (12) re failure
to provide the disclosures required by Sec. 20-325c, renumbering former Subdiv. as (13); P.A. 90-332 amended section to
include references to the real estate appraisal commission and provisions re certification for general certified and residential
certified appraisers; P.A. 91-229 deleted all references to general certified and residential certified appraisers and made
technical corrections; P.A. 93-354 deleted references to real estate appraisers, real estate appraisal commission and certification throughout section (see Sec. 20-518), effective in accordance with Sec. 20-528; P.A. 94-36 changed effective date of
P.A. 93-354 but without affecting this section; P.A. 94-240 made certain changes to the text to make it more gender neutral
and increased the maximum fine from one thousand dollars to two thousand dollars, effective July 1, 1994; P.A. 98-10
made technical changes; P.A. 99-231 added provision that fines collected pursuant to section shall be deposited into Real
Estate Guaranty Fund, effective June 29, 1999; June 30 Sp. Sess. P.A. 03-6 and P.A. 04-169 replaced Department of
Consumer Protection with Department of Agriculture and Consumer Protection, effective July 1, 2004; P.A. 04-189 repealed Sec. 146 of June 30 Sp. Sess. P.A. 03-6, thereby reversing the merger of the Departments of Agriculture and
Consumer Protection, effective June 1, 2004.
Real estate commission has jurisdiction to revoke broker's license pursuant to this section only if he is acting in his
capacity as broker, i.e. performing or attempting to perform "for another and for a fee." 169 C. 445, 448-451. Cited. 177
C. 515, 521.
Cited. 14 CA 46, 55. Cited. 37 CA 777, 781.
Cited. 26 CS 193.
Subdiv. (6):
Cited. 213 C. 612, 618.
Cited. 7 CA 120, 128. Cited. 25 CA 51, 55.
Subdiv. (8):
Cited. 37 CA 777, 779, 781, 782.
Subdiv. (11):
Cited. 177 C. 515, 516, 518, 519, 525, 527.
Sec. 20-320a. Referral of any buyer of real property to an attorney or mortgage broker prohibited, when. Suspension or revocation of licenses. Fines. (a) No
real estate broker or real estate salesperson, no person affiliated with such broker or
salesperson, and no person engaging in the real estate business 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, 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 commission or upon the verified complaint in writing of any person, if such complaint, or such
complaint together with evidence, documentary or otherwise, presented in connection
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 commission may temporarily suspend or permanently revoke any license issued under the provisions of this chapter, 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, the commission finds that the licensee is guilty of violating
any of the provisions of subsection (a) of this section.
(P.A. 94-240, S. 11; P.A. 96-200, S. 14; P.A. 98-10, S. 17; June 30 Sp. Sess. P.A. 03-6, S. 146(d); P.A. 04-169, S. 17;
04-189, S. 1.)
History: P.A. 96-200 substituted "salesperson" for "salesman"; P.A. 98-10 made technical changes; June 30 Sp. Sess.
P.A. 03-6 and P.A. 04-169 replaced Department of Consumer Protection with Department of Agriculture and Consumer
Protection, effective July 1, 2004; P.A. 04-189 repealed Sec. 146 of June 30 Sp. Sess. P.A. 03-6, thereby reversing the
merger of the Departments of Agriculture and Consumer Protection, effective June 1, 2004.
Sec. 20-321. Notice and hearing. Before refusing, suspending or revoking any
license or imposing any fine under this chapter, the commission shall give notice and
afford an opportunity for hearing as provided in the regulations adopted by the Commissioner of Consumer Protection.
(1953, 1955, S. 2349d; 1967, P.A. 460, S. 10; 1971, P.A. 871, S. 98; P.A. 76-26, S. 2, 3; P.A. 77-614, S. 228, 610; P.A.
90-332, S. 15, 32; P.A. 91-229, S. 12, 19; P.A. 93-354, S. 16, 54; P.A. 94-36, S. 41, 42; P.A. 98-10, S. 18; June 30 Sp.
Sess. P.A. 03-6, S. 146(c); P.A. 04-189, S. 1.)
History: 1967 act updated statute deleting references to "commissioner" and substituting "commission"; 1971 act made
false statement an optional finding where person swears or affirms falsely before the commission and replaced provision
for penalty of fine between twenty-five and two hundred dollars and/ or imprisonment for up to one year with provision
for "penalties provided for false statement"; P.A. 76-26 required notice and opportunity for hearing before "imposing any
fine"; P.A. 77-614 replaced lengthy and detailed provisions re notice, hearing, false statement and penalty for false statement
with provision requiring notice and opportunity for hearing as provided in regulations of consumer protection commissioner,
effective January 1, 1979; P.A. 90-332 amended section to include a reference to the real estate appraisal commission;
P.A. 91-229 added "certification" as a requirement for performance of work as a real estate appraiser to comply with
federal regulations; P.A. 93-354 deleted reference to real estate appraisal commission and certification (see Sec. 20-519),
effective in accordance with Sec. 20-528; P.A. 94-36 changed effective date of P.A. 93-354 but without affecting this
section; P.A. 98-10 made technical changes; June 30 Sp. Sess. P.A. 03-6 replaced Commissioner of Consumer Protection
with Commissioner of Agriculture and Consumer Protection, effective July 1, 2004; P.A. 04-189 repealed Sec. 146 of
June 30 Sp. Sess. P.A. 03-6, thereby reversing the merger of the Departments of Agriculture and Consumer Protection,
effective June 1, 2004.
Cited. 177 C. 515, 518.
Cited. 37 CA 777, 783.
Sec. 20-322. Appeal. Any person aggrieved by any decision or order of the commission may appeal in accordance with the provisions of section 4-183.
(1953, S. 2350d; 1971, P.A. 179, S. 16; P.A. 76-436, S. 435, 681; P.A. 77-603, S. 82, 125; 77-614, S. 229, 610; P.A.
90-332, S. 16, 32; P.A. 93-354, S. 17, 54; P.A. 94-36, S. 41, 42; P.A. 98-10, S. 19.)
History: 1971 act required that appeals be taken between twelve and thirty days after service rather than to the next or
"next but one" return day; P.A. 76-436 replaced court of common pleas with superior court and added reference to judicial
districts, effective July 1, 1978; P.A. 77-603 replaced previous detailed appeal provisions with provision requiring appeals
in accordance with Sec. 4-183; P.A. 77-614 deleted reference to appeals on grievances re regulations, effective January
1, 1979; P.A. 90-332 amended section to include a reference to the real estate appraisal commission; P.A. 93-354 deleted
reference to real estate appraisal commission (see Sec. 20-520), effective in accordance with Sec. 20-528; P.A. 94-36
changed effective date of P.A. 93-354 but without affecting this section; P.A. 98-10 made a technical change.
Cited. 169 C. 445, 447, 453.
Sec. 20-323. Revocation of license upon conviction of crime. Any licensee under
this chapter who is convicted of a violation of any of the offenses enumerated in subdivision (8) of section 20-320 shall incur a forfeiture of his license and all moneys that may
have been paid for such license. The clerk of any court in which such conviction has
been 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, not later than ten days after such receipt, notify the licensee, in writing, of the
revocation of his license. Such notice shall be conclusive of the revocation of such
license. Application for reinstatement of such license shall be subject to the provisions
of section 46a-80.
(1953, 1955, S. 2354d; P.A. 74-286, S. 2, 3; P.A. 76-168, S. 3, 4; P.A. 90-332, S. 17, 32; P.A. 91-229, S. 13, 19; May
Sp. Sess. P.A. 92-11, S. 4, 70; P.A. 93-354, S. 18, 54; P.A. 94-36, S. 41, 42; P.A. 98-10, S. 20.)
History: P.A. 74-286 changed term of ineligibility for license following revocation from ten to five years and made
same period applicable with regard to "termination of confinement, probation or parole, whichever is later"; P.A. 76-168
replaced previous provision re term of ineligibility for license following revocation with statement that applications for
reinstatement are subject to Sec. 4-61o (later transferred to Sec. 46a-80); P.A. 90-332 added a provision for "appropriate"
commission to differentiate between the real estate commission and the real estate appraisal commission and inserted
references to certification; P.A. 91-229 added "certification" as a requirement for performance of work as a real estate
appraiser to comply with federal regulations; May Sp. Sess. P.A. 92-11 made a technical change; P.A. 93-354 made
technical changes reflecting separation of statutory provisions concerning real estate commission and real estate appraisal
commission (see Sec. 20-521), effective in accordance with Sec. 20-528; P.A. 94-36 changed effective date of P.A. 93-354 but without affecting this section; P.A. 98-10 made technical changes.
Cited. 169 C. 445, 449.
Cited. 37 CA 777-783.
Sec. 20-324. Misrepresentation; penalty. 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 commission in connection with an application for a
license under this chapter shall be fined not more than five hundred dollars or imprisoned
not more than six months or both.
(1953, S. 2355d; P.A. 90-332, S. 18, 32; P.A. 93-354, S. 19, 54; P.A. 94-36, S. 41, 42; P.A. 98-10, S. 21.)
History: P.A. 90-332 added a provision for "appropriate" commission to differentiate between the real estate commission
and the real estate appraisal commission and inserted references to certification; P.A. 93-354 deleted reference to real
estate appraisal commission and certification (see Sec. 20-522), effective in accordance with Sec. 20-528; P.A. 94-36
changed effective date of P.A. 93-354 but without affecting this section; P.A. 98-10 made technical changes.
Sec. 20-324a. Real Estate Guaranty Fund. The commission shall establish and
maintain a Real Estate Guaranty Fund from which, subject to the provisions of sections
20-324a to 20-324j, inclusive, any person aggrieved by any action of a real estate broker
or real estate salesperson, duly licensed in this state under section 20-312, 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, 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.
(1969, P.A. 525, S. 1; P.A. 82-19; 82-422, S. 10, 14; P.A. 85-124, S. 1; P.A. 95-158, S. 2; P.A. 96-200, S. 15; P.A. 98-10, S. 22.)
History: P.A. 82-19 increased the amount a defrauded consumer could recover on a claim from ten to twenty-five
thousand dollars; P.A. 82-422 increased amount of recovery from fund from ten thousand to twenty-five thousand dollars;
P.A. 85-124 provided that compensation may be recovered upon approval by the commission of an application for compensation, rather than upon a court order; P.A. 95-158 added references to "real estate" for clarity to specify the types of
transactions and claims applicable under this section; P.A. 96-200 substituted "salesperson" for "salesman"; P.A. 98-10
made a technical change.
Cited. 189 C. 162, 165, 166. Cited. 192 C. 439, 440, 442.
Sec. 20-324b. Fee payable to fund. Any person who receives a real estate broker's
or real estate salesperson's license under this chapter 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. The Real Estate Guaranty Fund shall also be credited as provided in sections 20-314 and 20-320.
(1969, P.A. 525, S. 2; P.A. 96-200, S. 16; P.A. 98-10, S. 23; P.A. 99-231, S. 4, 7.)
History: P.A. 96-200 substituted "salesperson" for "salesman"; P.A. 98-10 made technical changes; P.A. 99-231 added
provision that fund is to be credited as provided in Secs. 20-314 and 20-320, effective June 29, 1999.
Cited. 189 C. 162, 166. Cited. 192 C. 439, 440.
Sec. 20-324c. Level of guaranty fund. Credits to guaranty fund and General
Fund. The 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 shall be credited to said fund whenever the fund balance is below five hundred
thousand dollars. Any such moneys may be invested or reinvested in the same manner
as funds of the state employees retirement system. The interest arising from such investments shall be credited to the Real Estate Guaranty Fund whenever the fund balance is
below five hundred thousand dollars, and to the General Fund whenever the fund balance
is equal to or greater than five hundred thousand dollars. Any moneys received under
section 20-324b not required to maintain the Real Estate Guaranty Fund balance shall
be deposited to the General Fund. All moneys in the Real Estate Guaranty Fund in
excess of five hundred thousand dollars, shall be transferred by the State Treasurer to
the General Fund.
(1969, P.A. 525, S. 3; P.A. 76-212, S. 1, 2; P.A. 89-105; P.A. 90-332, S. 19, 32; P.A. 98-10, S. 24; P.A. 99-231, S. 5, 7.)
History: P.A. 76-212 required that guaranty fund not exceed two hundred seventy-five thousand dollars and required
credit of moneys received under Sec. 20-324h to fund when balance drops below that level, replacing provision requiring
that fund contain minimum of two hundred fifty thousand dollars and that all moneys received be deposited in guaranty
fund, required that interest from investments be credited to general fund rather than guaranty fund and added provision
requiring deposit of moneys not needed to maintain guaranty fund and of amount exceeding two hundred seventy-five
thousand dollars in guaranty fund on May 19, 1976, in general fund; P.A. 89-105 raised the level of the guaranty fund to
five hundred thousand dollars; P.A. 90-332 specified the "real estate" commission to differentiate it from the recently
created real estate appraisal commission; P.A. 98-10 made technical changes; P.A. 99-231 added provision that required
interest arising from investments be credited to the Real Estate Guaranty Fund whenever the balance in the fund is below
five hundred thousand dollars, effective June 29, 1999.
Cited. 189 C. 162, 166. Cited. 192 C. 439, 440.
Sec. 20-324d. Limitation of actions. No application to recover compensation under sections 20-324a to 20-324j, inclusive, which might subsequently result in an order
for collection from 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.
(1969, P.A. 525, S. 4; P.A. 85-124, S. 4; P.A. 98-10, S. 25.)
History: P.A. 85-124 provided that any application for compensation must be brought within two years from the final
determination of, or expiration of appeal rights concerning, any judgment, rather than within two years of the date a cause
of action accrued; P.A. 98-10 made a technical change.
Running of state of limitations discussed. 189 C. 162, 163, 165-167, 181-183. Cited. 192 C. 439, 440.
Sec. 20-324e. Procedure. (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 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 commission pursuant to section 20-324d. 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 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 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 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
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 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 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 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 commission may in its discretion waive such requirements.
(e) The commission shall order payment from the Real Estate Guaranty Fund of
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, 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 commission pays from 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 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 the Real Estate Guaranty Fund is insufficient to satisfy any duly authorized claim or portion thereof, the commission shall, when
sufficient money has been deposited in 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.
(1969, P.A. 525, S. 5; P.A. 76-436, S. 436, 681; P.A. 78-280, S. 1, 5, 127; P.A. 80-483, S. 88, 186; P.A. 82-422, S. 11,
14; P.A. 85-124, S. 3; P.A. 90-332, S. 20, 32; P.A. 95-158, S. 3; P.A. 96-200, S. 17; P.A. 98-10, S. 26.)
History: P.A. 76-436 replaced references to "court of competent jurisdiction" and to court of common pleas with
references to superior court and added reference to judicial districts in Subsec. (b), effective July 1, 1978; P.A. 78-280
deleted reference to counties and replaced specific reference to Hartford county with "judicial district of Hartford-New
Britain"; P.A. 80-483 replaced reference to "subsection (a)" in Subsec. (c) with "subsection (b)" and reference to "subsection
(b)" in Subsec. (e) with "subsection (c)"; P.A. 82-422 amended section to provide for application by aggrieved person to
commission and not court for order directing payment from fund, to provide for automatic revocation of license upon entry
of court judgment, and to require interest at current market rates rather than at four per cent per year; P.A. 85-124 amended
Subsec. (a) by providing that notice to the commission of the commencement of an action tolls the time for the person
making application to the commission; P.A. 90-332 specified "real estate" commission to differentiate it from the recently
created real estate appraisal commission; P.A. 95-158 amended Subsec. (a) to allow the commission the option of waiving
the required written notice for good cause shown; P.A. 96-200 substituted "salesperson" for "salesman"; P.A. 98-10 made
technical changes.
Cited. 189 C. 162, 166-168, 170, 174. Cited. 192 C. 439, 440.
Subsec. (a):
When read together with Sec. 20-324g court construed statute as giving the commission only a derivative party status
in the plenary action. 189 C. 162, 168, 174. Cited. 192 C. 439, 441.
Subsec. (b):
Cited. 189 C. 162, 165, 174. Cited. 192 C. 439, 441, 442.
Subsec. (c):
Cited. 189 C. 162, 174.
Sec. 20-324f. Penalty for false or untrue claim. Any person filing with the commission any notice, statement or other document required under the provisions of section
20-324e which is false or untrue or contains any material misstatement of fact shall be
fined not less than two hundred dollars.
(1969, P.A. 525, S. 6; P.A. 90-332, S. 21, 32; P.A. 98-10, S. 27.)
History: P.A. 90-332 specified "real estate" commission to differentiate it from the recently created real estate appraisal
commission; P.A. 98-10 made a technical change.
Cited. 189 C. 162, 166, 169. Cited. 192 C. 439, 440.
Sec. 20-324g. Procedure for commission. When the commission receives notice,
as provided in section 20-324e, it may enter an appearance, file an answer, appear at
the court hearing, defend the action or take whatever other action 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.
(1969, P.A. 525, S. 7; P.A. 90-332, S. 22, 32; P.A. 98-10, S. 28.)
History: P.A. 90-332 specified "real estate" commission to differentiate it from the recently created real estate appraisal
commission; P.A. 98-10 made technical changes.
Cited. 189 C. 162, 166, 168-170. Cited. 192 C. 439-441.
Sec. 20-324h. Payment from guaranty fund. When the commission has caused
to be paid from 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 commission, and any amount and interest
recovered by the commission on the judgment shall be deposited to the fund.
(1969, P.A. 525, S. 8; P.A. 85-124, S. 2; P.A. 90-332, S. 23, 32; P.A. 98-10, S. 29.)
History: P.A. 85-124 removed the provision that payment from the fund by the commission is triggered by a court
order; P.A. 90-332 specified "real estate" commission to differentiate it from the recently created real estate appraisal
commission; P.A. 98-10 made technical changes.
Cited. 192 C. 439, 440.
Sec. 20-324i. Regulations. The Commissioner of Consumer Protection, with the
advice and assistance of the commission, may adopt regulations, in accordance with
chapter 54, to carry out the provisions of sections 20-324a to 20-324j, inclusive.
(1969, P.A. 525, S. 9; P.A. 77-614, S. 230, 610; P.A. 90-332, S. 24, 32; P.A. 98-10, S. 30; June 30 Sp. Sess. P.A. 03-6, S. 146(c); P.A. 04-189, S. 1.)
History: P.A. 77-614 transferred power to make regulations from commission to consumer protection commissioner,
retaining commission in an advisory capacity, and substituted "adopt" for "promulgate", effective January 1, 1979; P.A.
90-332 specified "real estate" commission to differentiate it from the recently created real estate appraisal commission;
P.A. 98-10 made technical changes; June 30 Sp. Sess. P.A. 03-6 replaced Commissioner of Consumer Protection with
Commissioner of Agriculture and Consumer Protection, effective July 1, 2004; P.A. 04-189 repealed Sec. 146 of June 30
Sp. Sess. P.A. 03-6, thereby reversing the merger of the Departments of Agriculture and Consumer Protection, effective
June 1, 2004.
Cited. 192 C. 439, 440.
Sec. 20-324j. Appeal of commission decision, order or regulation. Any person
aggrieved by any decision, order or regulation of the commission under sections 20-324a to 20-324i, inclusive, may appeal in accordance with the provisions of section
20-322.
(1969, P.A. 525, S. 10; P.A. 90-332, S. 25, 32; P.A. 98-10, S. 31.)
History: P.A. 90-332 specified "real estate" commission to differentiate it from the recently created real estate appraisal
commission; P.A. 98-10 made technical changes.
Cited. 169 C. 445, 453 (Dissent). Cited. 192 C. 439, 440.
Sec. 20-324k. Brokers to maintain escrow or trust account for certain moneys
held. Disputed deposits. (a) Each broker licensed under the provisions of this chapter,
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 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 the commission shall deem such examination and audit necessary.
(c) Any 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 to such transaction, pending final legal disposition of such moneys in
accordance with the instructions of the person legally entitled 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 such certified funds, the court shall also order the dismissal of any claim against the
broker which claim is based solely on the broker's role as stakeholder of 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.
(1971, P.A. 359, S. 1-4; P.A. 83-512, S. 1; P.A. 87-63, S. 1, 2; 87-589, S. 26, 87; P.A. 96-105; P.A. 98-10, S. 32.)
History: P.A. 83-512 amended Subsec. (d) to increase the maximum fine from five hundred to one thousand dollars;
P.A. 87-63 amended Subsec. (c) to require the deposit of moneys in the escrow or trust account within three banking days
of the date the agreement evidencing the transaction is signed by all the parties; P.A. 87-589 made technical change in
Subsec. (c); P.A. 96-105 inserted new Subsec. (d) to allow court orders re broker-held funds, relettering former Subsec.
as (e); P.A. 98-10 made technical changes.
See Sec. 8-265f re program for use of interest earned on real estate broker escrow or trust accounts for mortgage
assistance for first-time buyers.
Sec. 20-325. Engaging in business without license. Any person who engages in
the business of a real estate broker or real estate salesperson without obtaining a license
as provided in this chapter 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 commission, in
its discretion, may grant a license to such person within such one-year period upon
application and after a hearing on such application.
(1953, 1955, S. 2356d; 1957, P.A. 62, S. 1; P.A. 83-512, S. 3; P.A. 88-329, S. 11, 15; P.A. 90-332, S. 26, 32; P.A. 91-229, S. 14, 19; P.A. 93-354, S. 20, 54; P.A. 94-36, S. 41, 42; P.A. 96-200, S. 18; P.A. 98-10, S. 33.)
History: P.A. 83-512 increased the maximum fine from five hundred to one thousand dollars; P.A. 88-329 made penalty
for engaging in business without a license applicable to real estate appraisers and residential appraisers, and added a new
Subsec. (b) prohibiting persons not licensed from representing themselves as licensed real estate appraisers or residential
appraisers, effective July 1, 1989; P.A. 90-332 amended section to include references to the real estate commission and
the real estate appraisal commission and to add provisions re certification for general certified and residential certified
appraisers; P.A. 91-229 deleted all references to general certified and residential certified appraisers; P.A. 93-354 deleted
former Subsec. (b) prohibiting person who is not licensed or certified appraiser from representing himself as one and
imposing penalty for violation of provisions, deleting references to real estate appraisal commission and to certification
and making necessary technical changes in remaining provisions (see Sec. 20-523), effective in accordance with Sec.
20-528; P.A. 94-36 changed effective date of P.A. 93-354 but without affecting this section; P.A. 96-200 substituted
"salesperson" for "salesman"; P.A. 98-10 made technical changes.
Cited. 34 CA 250, 253.
Subsec. (a):
Cited. 34 CA 250, 251. Cited. 36 CA 653, 662.
Sec. 20-325a. Actions to recover commissions arising out of real estate transactions. Real estate broker's lien for real property. Claim for lien. Provisions re
commercial real estate transactions. (a) No person who is not licensed under the
provisions of this chapter, and who was not so licensed at the time the person performed
the acts or rendered the services for which recovery is sought, shall commence or bring
any action in any court of this state, after October 1, 1971, to recover any commission,
compensation or other payment with respect to any act done or service rendered by the
person, the doing or rendering of which is prohibited under the provisions of this chapter
except by persons duly licensed under this chapter.
(b) No person, licensed under the provisions of this chapter, shall commence or
bring any action with respect to any acts done or services rendered after October 1,
1995, as set forth in subsection (a), unless the acts or services were rendered pursuant
to a contract or authorization from the person for whom the acts were done or services
rendered. To satisfy the requirements of this subsection any contract or authorization
shall: (1) Be in writing, (2) contain the names and addresses of the real estate broker
performing the services and the name of the person or persons for whom the acts were
done or services rendered, (3) show the date on which such contract was entered into
or such authorization given, (4) contain the conditions of such contract or authorization,
(5) be signed by the real estate broker or the real estate broker's authorized agent, (6)
if such contract or authorization pertains to any real property, include the following
statement: "THE REAL ESTATE BROKER MAY BE ENTITLED TO CERTAIN
LIEN RIGHTS PURSUANT TO SECTION 20-325a OF THE CONNECTICUT GENERAL STATUTES", and (7) be signed by the person or persons for whom the acts were
done or services rendered or by an agent authorized to act on behalf of such person or
persons, pursuant to a written document executed in the manner provided for conveyances in section 47-5, except, if the acts to be done or services rendered involve a listing
contract for the sale of land containing any building or structure occupied or intended
to be occupied by no more than four families, the listing contract shall be signed by the
owner of the real estate or by an agent authorized to act on behalf of such owner pursuant
to a written document executed in the manner provided for conveyances in section 47-5.
(c) Notwithstanding the provisions of subsection (b) of this section, no person licensed under the provisions of this chapter shall commence or bring any action with
respect to any acts done or services rendered after October 1, 2000, in a commercial
real estate transaction, unless the acts or services were rendered pursuant to (1) a contract
or authorization meeting the requirements of subsection (b) of this section, or (2) a
memorandum, letter or other writing stating for whom the licensee will act or has acted,
signed by the party for whom the licensee will act or has acted in the commercial real
estate transaction, the duration of the authorization and the amount of any compensation
payable to the licensee, provided (A) the licensee provides written notice to the party,
substantially similar to the following: "THE REAL ESTATE BROKER MAY BE
ENTITLED TO CERTAIN LIEN RIGHTS PURSUANT TO SECTION 20-325a OF
THE CONNECTICUT GENERAL STATUTES", and (B) the notice is provided at or
before the execution of the contract, authorization, memorandum, letter or other writing,
and may be made part of the contract, authorization, memorandum, letter or other
writing.
(d) Nothing in subsection (a) of this section, subdivisions (2) to (7), inclusive, of
subsection (b) of this section or subsection (c) of this section shall prevent any licensee
from recovering any commission, compensation or other payment with respect to any
acts done or services rendered, if it would be inequitable to deny such recovery and
the licensee (1) has substantially complied with subdivisions (2) to (7), inclusive, of
subsection (b) of this section or (2) with respect to a commercial real estate transaction,
has substantially complied with subdivisions (2) to (6), inclusive, of subsection (b) of
this section or subdivision (2) of subsection (c) of this section.
(e) A licensed real estate broker who has performed acts or rendered services relating to real property upon terms provided for in a written contract or agreement between
the broker and the owner or buyer for whom such acts were done or services rendered
shall have a lien upon such real property. The lien shall be in the amount of the compensation agreed upon by the broker and the owner or buyer for whom such acts were performed or services rendered.
(f) Except as provided in subsections (g), (h) and (i) of this section, the lien provided
for in this section shall not attach until the broker is entitled to compensation, without
any contingencies, other than closing or transfer of title, under the terms set forth in the
written listing or buyer representation contract and the broker has recorded the claim
for lien prior to the actual conveyance or lease of such real property with the town clerk
of the town where such property is located.
(g) Except as provided in subsection (h) of this section, when a broker is entitled
to compensation in installments, a portion of which is due only after the conveyance or
lease of the real property, any claim for lien for those payments due after the conveyance
or lease may be recorded at any time subsequent to the conveyance or lease of the real
property and prior to the date on which the payment is due but shall only be effective
as a claim for lien against the real property to the extent moneys are still owed to the
transferor or lessor by the transferee or lessee. A single claim for lien recorded prior to
conveyance or lease of the real property claiming all moneys due under an installment
payment agreement shall not be valid or enforceable as it pertains to payments due after
the conveyance or lease. The lien shall attach as of the recording of the claim for lien.
(h) In the case of a lease for real property where the broker's compensation will not
be paid in installments, the claim for lien must be recorded no later than thirty days after
the tenant takes possession of the leased premises unless written notice of the intended
signing of the lease is delivered to the broker entitled to claim a lien by registered or
certified mail, return receipt requested, or by personal service, at least ten days prior to
the date of the intended signing of the lease for the real property in which case the claim
for lien must be recorded before the date indicated for the signing of the lease in the
notice delivered to the broker. The lien shall attach as of the recording of the claim
for lien.
(i) If a broker's written contract for payment is with a prospective buyer, then the
lien shall attach only after the prospective buyer accepts the conveyance or lease of the
real property and the claim for lien is recorded by the broker with the town clerk of the
town in which the property is located. Any claim for lien shall be filed by the broker no
later than thirty days after the conveyance or the tenant takes possession of the real
property.
(j) The broker shall serve a copy of the claim for lien on the owner of the real
property. Service shall be made by mailing a copy of the claim for lien by registered or
certified mail, return receipt requested, or by personal service upon the owner by any
indifferent person, state marshal or other proper officer, by leaving with such owner or
at the owner's usual place of abode a true and attested copy thereof. A copy of the claim
for lien may be served at the same time as the notice required by subsection (r) of this
section. The broker's lien shall be void and unenforceable if recording does not occur
within the time period and in the manner required by this section.
(k) (1) A broker may bring suit to enforce a claim for lien in the superior court in
the judicial district where the real property is located by filing a complaint and sworn
affidavit that the claim for lien has been recorded in accordance with this section.
(2) A person claiming a lien shall, unless the claim is based upon an option to
purchase the real property, within one year after recording the claim for lien, commence
foreclosure by filing a complaint. Failure to commence foreclosure within one year after
recording the lien shall extinguish the lien. No subsequent claim for lien may be given
for the same claim nor may that claim be asserted in any proceedings under this section.
(3) A person claiming a lien based upon an option to purchase real property shall,
within six months after the conveyance or lease of the real property under the exercise
of the option to purchase, commence foreclosure by filing a complaint and a sworn
affidavit that the claim for lien has been recorded in accordance with this section. Failure
to commence foreclosure within six months after the conveyance or lease shall extinguish the claim for lien. No subsequent claim for lien may be given for the same claim
nor may that claim be asserted in any proceedings under this section.
(4) The plaintiff shall issue summons and provide service as in actions to foreclose
a mortgage. When any defendant resides out of the state or is temporarily located out
of the state, or on inquiry cannot be found, or is concealed within this state so that process
cannot be served on that defendant, the plaintiff shall cause a notice to be given to that
defendant, or cause a copy of the complaint to be served upon that defendant, in the
manner and upon the same conditions as in actions to foreclose a mortgage. Except as
otherwise provided in this section, all liens claimed under this section shall be foreclosed
in the manner in which mortgage foreclosures are conducted.
(l) The claim for lien shall state the name of the claimant, the name of the owner,
a description of the real property upon which the lien is being claimed, the amount for
which the lien is claimed, and the real estate license number of the broker. The claim
for lien shall contain a sworn statement by the signatory that the information contained
in the notice is true and accurate to the knowledge of the signatory. The claim for lien
shall be signed by the broker or the real estate broker's authorized agent.
(m) Whenever a claim for lien has been recorded with the town clerk and a condition
occurs that would preclude the broker from receiving compensation under the terms of
the broker's written contract or agreement, the broker shall provide within thirty days
of demand to the owner of record a written release or satisfaction of the lien.
(n) Upon written demand of the owner or the owner's authorized agent, served on
the broker claiming the lien requiring suit to be commenced to enforce the lien, a suit
shall be commenced within forty-five days thereafter or the claim for lien shall be extinguished. Service of any such written demand shall be by registered or certified mail,
return receipt requested, or by personal service upon the broker by any indifferent person,
state marshal or other proper officer, by leaving with such broker or at the broker's usual
place of abode a true and attested copy thereof.
(o) Whenever a claim for lien has been recorded with the town clerk and is paid,
or where there is failure to foreclose to enforce the lien within the time provided by this
section, the broker shall acknowledge satisfaction or release the claim for lien, in writing,
on written demand of the owner within thirty days after payment or expiration of the
time in which to commence foreclosure on the lien.
(p) Except as otherwise provided in this section, whenever a claim for lien has been
recorded with the town clerk that would prevent the closing of a conveyance or lease,
an escrow account shall be established from the proceeds of the conveyance or lease in
the amount of the compensation agreed upon by the parties. Upon the establishment of
the escrow account the broker shall immediately release the claim for lien. The establishment of an escrow account, as provided for in this section, shall not be the sole cause
for the owner to refuse to complete the conveyance or lease. The moneys shall be held
in escrow by the attorney for the lessor in the case of a lease for real property, and by
the attorney for the owner in the case of the actual conveyance or lease of such real
property, until the parties' rights to the escrowed moneys have been determined by the
written contract or agreement of the parties, a determination by the Superior Court, or
some other process which may be agreed to by the parties. When there are sufficient
funds in the amount of the claimed lien, there shall be a release of the claim for lien which
would allow completion of the conveyance or lease on such terms as are acceptable to
the parties involved in the conveyance or lease. If the proceeds from the conveyance or
lease are insufficient to release all liens claimed against the real property, including the
broker's claim for lien, then the parties are not required to establish the escrow account
under this section.
(q) The provisions of subsections (a) and (b) of this section shall not apply to any
(1) person excepted from the provisions of this chapter by section 20-329 with respect
to any acts performed by the person which are included in such exception; or (2) real
estate broker or real estate salesperson who has provided services to the federal government, any political subdivision thereof, or any corporation, institution or quasi-governmental agency chartered by the federal government.
(r) No broker is entitled to claim any lien under this section unless (1) after the
broker is entitled to compensation, without contingencies other than closing or transfer
of title, under the terms set forth in the written contract and not later than three days
prior to the later of the date of the conveyance or lease as set forth in the real estate sales
contract or lease or the actual date of the conveyance or the date when the tenant takes
possession, the broker gives written notice of the claim for lien to the owner of the real
property and to the prospective buyer or tenant that the broker is entitled to compensation
under the terms set forth in the written contract and intends to claim a lien on the real
property, or (2) the broker is unable to give written notice pursuant to subdivision (1)
of this subsection because the identity of the prospective buyer or tenant cannot be
ascertained by the broker after due diligence and reasonable effort. The notice shall be
served upon the owner and upon the prospective buyer or tenant by any indifferent
person, state marshal or other proper officer, by leaving with such owner and prospective
buyer or at their usual places of abode a true and attested copy thereof. When there are
two or more owners, or two or more prospective buyers, the notice shall be served on
each owner and on each prospective buyer unless the identity of the prospective buyer
cannot be ascertained by the broker after due diligence and reasonable effort.
(1971, P.A. 378, S. 1-3; 1972, P.A. 175; P.A. 73-29; P.A. 84-137; P.A. 85-166, S. 1, 2; P.A. 93-355, S. 1; P.A. 94-240, S. 3, 14; P.A. 95-164; 95-186, S. 1; P.A. 00-21, S. 1; 00-99, S. 58, 154; 00-160, S. 2; P.A. 02-24, S. 12, 13; P.A. 04-131, S. 1.)
History: 1972 act deleted word "such" in Subsec. (b) modifying "person", "action" and "acts"; P.A. 73-29 made Subsec.
(b) applicable to persons "licensed under the provisions of this chapter" and added phrase "as set forth in subsection (a)";
P.A. 84-137 amended Subsec. (b) to require that the authorization or contract be signed by the seller or his duly authorized
agent and the broker or his authorized agent rather than by the "parties thereto"; P.A. 85-166 amended Subsec. (b) to
require that the contract or authorization be signed by the owner, rather than the seller, and clarified the scope of authority
of any agent permitted to act on his behalf; P.A. 93-355 added provisions re real estate broker's liens on commercial real
property as Subdiv. (6) of Subsec. (b) and Subsecs. (c) to (n), inclusive, and Subsec. (p), relettering former Subsec. (c) as
(o); P.A. 94-240 amended Subsec. (b) by requiring that contract be signed by the real estate broker or the broker's authorized
agent, added a new Subdiv. (6) in Subsec. (b) requiring a lien rights statement to be included in a commercial real property
contract or authorization, added a new Subdiv. (7) requiring the listing contract for the sale of real estate be signed by the
owner of the property or an agent authorized to act on his behalf, inserted new Subsec. (c) regarding the recovery of
commission, compensation or other payment with respect to acts done or services rendered if the broker has substantially
complied, relettered the remaining Subsecs., redefined "commercial real property" in Subsec. (d), added a provision in
Subsec. (i) regarding the service of a claim for lien and made minor changes for clarity, effective July 1, 1994; P.A. 95-164 in Subsec. (b) amended Subdiv. (7) to eliminate the requirement that the listing contract for the sale of real estate be
signed by the owner of the property or an agent authorized to act on his behalf and substituted a provision requiring a
signature by the person or persons for whom the acts were done or services rendered, except in the sale of land intended
for residential use, in which case the owner of the real estate or an authorized agent is required to sign the contract; P.A.
95-186 amended Subsec. (b) by changing the applicable date from July 1, 1994, to October 1, 1995, deleted references to
"commercial real property" and substitute "any real property" in Subsecs. (b), (d) to (k), inclusive, (o) and (q), in Subsec.
(d) deleted definition of "commercial real property" and in Subsec. (h) made a technical correction by changing the reference
to "(8)" to "(q)"; P.A. 00-21 amended Subsecs. (a), (b) and (c) by substituting "the person" for "him" and "he" and
substituting "with respect to" for "in respect of"; P.A. 00-99 replaced references to sheriff with state marshal in former
Subsecs. (i), (m) and (q), redesignated as Subsecs. (j), (n) and (r), effective December 1, 2000; P.A. 00-160 deleted
reference to "subsection (d) of" Sec. 20-325a in Subsec. (b), inserted new Subsec. (c) re commercial real estate transactions,
redesignated former Subsecs. (c) to (q), inclusive, as Subsecs. (d) to (r), respectively, amended Subsec. (d) to insert proviso
re inequity of denying recovery and provisions re substantial compliance with certain provisions of section with respect
to commercial real estate transaction, substituted "owner or buyer" for "owner" in Subsec. (e), amended Subsec. (f) to
substitute "written listing or buyer representation contract" for "written contract", amended Subsec. (r) to require written
notice after the later of the conveyance date set forth in the contract or lease or the actual date of conveyance or date when
the tenant takes possession, and substituted "with respect to" for "in respect of" in Subsecs. (a), (b) and (d) and made other
technical changes throughout the section; P.A. 02-24 amended Subsec. (b)(7) to provide that the listing contract be signed
for acts or services that involve a listing contract, and made technical changes in Subsecs. (c) and (r); P.A. 04-131 amended
Subsec. (g) to delete "from the owner of real property" re broker entitled to compensation and referenced the lessor or
lessee re moneys still owed, amended Subsec. (h) to add "where the broker's compensation will not be paid in installments",
amended Subsec. (k) to add Subdiv. designators (1) to (4), inclusive, and amended Subdiv. (3) to add "real property" re
purchase and substitute "six months after the conveyance or lease" for "this time", amended Subsec. (l) to allow claim for
lien to be signed by real estate broker's authorized agent, inserted Subdiv. designators (1) and (2) in Subsec. (q), amended
Subsec. (r) to insert Subdiv. designators (1) and (2), insert in Subdiv. (2) an exception if broker is unable to give written
notice because identity cannot be ascertained after due diligence and reasonable effort, make conforming changes and
substitute "prospective buyer" for "buyer", and made technical changes in Subsecs. (e), (i), (k), (n), (p), (q), and (r).
See Sec. 20-325e re hearings re commercial real property claims for liens, foreclosures and judicial intervention.
See Sec. 20-325k re commissions on commercial real estate lease transactions.
Section pertains only to listing contracts and not to the sales contract. 186 C. 82-85. Plaintiff's cause of action arose
out of his employment contract with the defendant and was not an action seeking to recover a commission from a real
estate transaction. 190 C. 808, 811-813. Cited. 191 C. 276, 277. Cited. 203 C. 475, 480-482. Cited. 213 C. 612, 617, 618,
624. Cited. 218 C. 512, 530. Cited. 232 C. 645, 647, 656, 658, 662. Cited. 236 C. 746, 748.
Cited. 6 CA 720-722. Cited. 7 CA 709, 712. Cited. 9 CA 293, 296. "... an agreement between brokers is not subject to
requirements of the statute". 11 CA 557, 558, 560-564, 566. Cited. 13 CA 527-532. Cited. 17 CA 294, 303, 305. Cited.
24 CA 250, 252, 253. Cited. 25 CA 51, 54, 55. Cited. 28 CA 563-565, 570-574. Cited. 31 CA 682-684, 687, 688. Cited.
35 CA 31, 34, 36-38, 41. Cited. 36 CA 653-655, 658, 662, 663. Requirements of statute mandatory except where equitable
estoppel applies and real estate broker believed the contract was validly extended. 50 CA 640. Trial court's determination
that plaintiff had not established the statutorily required inequity in denying recovery of commission was not clearly
erroneous or an abuse of discretion. 69 CA 220.
Section acts as a restriction on the conduct of an occupation which, were it not for the statute, would be allowed, and
must be strictly construed. 35 CS 220, 223, 224. Cited. Id. Cited. 38 CS 509, 511, 512. Cited. 41 CS 225-228.
Subsec. (a):
Cited. 215 C. 316, 322. Cited. 218 C. 396, 397, 399, 400, 403. Although section sets forth a necessary condition for filing
action to recover a commission, namely, that person filing the action be licensed under chapter's provisions, compliance with
that condition is not, in and of itself, sufficient to permit recovery. 266 C. 572.
Cited. 3 CA 675, 676. Cited. 5 CA 76, 77. Cited. 35 CA 31, 37. Cited. 36 CA 650, 662.
Subsec. (b):
Cited. 178 C. 381-383. Cited. 184 C. 228-230. Cited 185 C. 463, 470. Cited. 186 C. 74, 77. Requirements of this
section apply to listing contract, not sales contract. 186 C. 237, 243, 244. Cited. 189 C. 52, 53, 55, 57, 58. Subdiv. (4) cited.
Id., 52, 55. Requirements of the statute concerning actions to recover real estate commissions are not applicable to action
by real estate salesman seeking a share of commissions from his employer. 190 C. 808-811, 813. Subdiv. (2) cited. Id.,
808, 811. Cited 191 C. 276, 278, 279. Cited. 197 C. 264, 267. Cited. 213 C. 612, 621, 623, 624. Subdiv. (4) cited. Id., 612,
622, 623, 625. Cited. 218 C. 512-514, 517-524, 526-528, 530. "owner" as used in subsection refers to owner of the
property interest that is the subject of the listing agreement. 232 C. 645-648, 654-663, 666. Subdiv. (5) cited. Id., 645,
656. Requirement that the agent signatory to a listing agreement be authorized by written document to act on behalf of the
owner applies where owner may act individually or through an agent and chooses to act through an agent. 258 C. 121.
Subdiv. (5) cited. 6 CA 720, 721. Cited. 7 CA 120-122, 124-126. Cited. Id., 709, 710, 713-715. Subdiv. (4) cited. Id.,
709, 710. Cited. 8 CA 371, 372. Cited. 9 CA 87, 89. Subdiv. (4): Location and price of units not necessary in order to state
"conditioning of such contract or authorization" in this instance where owner reserved right to determine price and specific
unit. Id., 293, 296, 297. Cited. Id., 293-297. Cited. 11 CA 557, 561, 563. Cited. 13 CA 527, 530, 532. Cited. 17 CA 294,
302-307. Subdiv. (4) cited. Id., 294, 305. Subdiv. (5) cited. Id., 294, 306. Cited. 23 CA 688-692. Cited. 24 CA 250, 253.
Cited. 28 CA 563, 567-569, 571, 573. Subdiv. (1) cited. Id., 563, 570. Cited. 31 CA 682-685, 687. Cited. 35 CA 31, 37.
Subdiv. (3) cited. 36 CA 653, 655, 657, 658, 660, 662. Cited. Id., 653, 657, 658. Listing agreement was unenforceable
because it was not in strict compliance with statute and did not reflect any authorization for general partners to sign as
agents authorized to act on behalf of the owner. Statute, as amended by P.A. 94-240 which permits recovery of commissions
in cases of substantial compliance with the statute, applies prospectively only because there is no clear and unequivocal
language in act or legislative history that supports an inference in favor of retrospective application. 56 CA 815. Where
listing agreement was mistakenly filled in but was nevertheless signed by the authorized agent of the broker, it was held
that the agreement complied with this section. 75 CA 546.
Separate documents, rather than a single contract, may collectively meet statutory requirements of this subsection. 35
CS 24, 25-28. Cited. Id., 220, 222. Action by broker to recover commission prohibited due to failure to comply with
requirement that addresses of all parties be contained in contract. Id., 617, 619, 620. Merely obtaining a binding executory
contract is insufficient to entitle a broker to a commission where the commission was expressly made dependent upon the
actual sale of the property. 36 CS 532, 536. Subdiv. (4): Broker was not entitled to a commission where the listing agreement
made the commission conditional upon the actual consummation of the sales transaction and the sale never took place. Id.
Cited. 37 CS 703, 704. Cited. 38 CS 655-658, 659 (Diss. Op.), 660 (Diss. Op.); Id., 703, 706. The legislature in enacting
this statute, made no distinction between straight real estate sales and those integrated with commercial transactions. 39
CS 95-98. Cited. 41 CS 225-227. Subdiv. (3) cited. Id., 225, 227. Subdiv. (5) cited. Id.
Sec. 20-325b. Certain real estate agreements to contain notice regarding commissions. Requirements. Each written agreement which fixes the compensation to be
paid to a real estate broker for the sale, lease or purchase of real property shall contain
the following statement in not less than ten point boldface type or in a manner which
otherwise stands out significantly from the text immediately preceding any provision
of such agreement relating to compensation of the broker:
"NOTICE: THE AMOUNT OR RATE OF REAL ESTATE BROKER COMPENSATION IS NOT FIXED BY LAW. IT IS SET BY EACH BROKER INDIVIDUALLY
AND MAY BE NEGOTIABLE BETWEEN YOU AND THE BROKER."
(P.A. 80-99, S. 1, 2; P.A. 81-178, S. 2, 3; P.A. 94-240, S. 4, 14.)
History: P.A. 81-178 provided that real estate agreements may include the required notice in a conspicuous manner
rather than use ten point boldface type; P.A. 94-240 applied section to compensation for lease or purchase properties,
substituted "broker compensation" for "commissions" and made certain minor technical corrections for clarity, effective
July 1, 1994.
Cited. 213 C. 612, 618, 619, 621, 624.
Cited. 7 CA 570, 572, 573. Cited. 13 CA 527-530.
Cited. 41 CS 225, 227, 228.
Sec. 20-325c. Real estate broker or salesperson acting as mortgage broker. (a)
As used in this section "residential real property" means one to four-family residential
real estate located in this state.
(b) Notwithstanding any provision of the general statutes to the contrary, no real
estate broker or real estate salesperson, 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 Banking Commissioner by regulations adopted pursuant to chapter 54, (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.
(c) Any disclosure made pursuant to subsection (b) of this section shall be made to
and acknowledged by the buyer prior to the time the buyer signs a contract with the
real estate broker or salesperson for mortgage brokering services. Such disclosure shall
include the following notice printed in at least ten-point boldface capital letters:
I UNDERSTAND THAT THE REAL ESTATE BROKER OR SALESPERSON IN
THIS TRANSACTION HAS OFFERED TO ASSIST ME IN FINDING A MORTGAGE LOAN. ADDITIONALLY, I UNDERSTAND THAT THIS REAL ESTATE
BROKER OR SALESPERSON DOES NOT REPRESENT ANY PARTICULAR
MORTGAGE LENDER AND WILL ATTEMPT TO OBTAIN THE BEST TERMS
AVAILABLE WITHIN THE MORTGAGE LOAN MARKET FOR MY SPECIFIC
HOME FINANCING NEEDS. IF THE REAL ESTATE BROKER OR SALESPERSON DOES NOT FULFILL HIS FIDUCIARY OBLIGATION I MAY FILE A COMPLAINT WITH THE DEPARTMENT OF BANKING. I ALSO UNDERSTAND
THAT I MAY ATTEMPT TO FIND A MORTGAGE LOAN TO FINANCE THE
PURCHASE OF MY HOME WITHOUT THE ASSISTANCE OF THE REAL ESTATE BROKER OR SALESPERSON IN WHICH CASE I WILL NOT BE OBLIGATED TO PAY A FEE TO THE REAL ESTATE BROKER OR SALESPERSON.
(d) No mortgage lender may refuse to close a mortgage loan secured by residential
real property because the buyer has not paid a fee, commission or other valuable consideration to a real estate broker or salesperson for negotiating, soliciting, arranging, placing
or finding the first mortgage loan.
(P.A. 89-347, S. 1; P.A. 94-240, S. 5, 14; P.A. 98-10, S. 34; P.A. 03-84, S. 16.)
History: P.A. 94-240 made certain changes to the text to make it more gender neutral, effective July 1, 1994; P.A. 98-10 made technical changes in Subsec. (b); P.A. 03-84 changed "Commissioner of Banking" to "Banking Commissioner"
in Subsec. (b), effective June 3, 2003.