PA 12-122—sHB 5087

General Law Committee

Insurance and Real Estate Committee

AN ACT REQUIRING THE COMMISSIONER OF CONSUMER PROTECTION TO MAKE CHANGES TO THE RESIDENTIAL PROPERTY CONDITION DISCLOSURE REPORT

SUMMARY: This act requires the consumer protection commissioner to update, by January 1, 2013, the regulations prescribing what must be disclosed on forms describing the condition of a residential property offered for sale. In addition to the required disclosures in existing law, the act requires the disclosure form to state:

1. whether a property located in a common interest community is subject to any community or association dues or fees;

2. that the prospective purchaser should consult with the building official in the municipality where the property is located to confirm that applicable building permits and certificates of occupancy have been issued for work on the property;

3. that the prospective purchaser should have the property inspected by a licensed home inspector;

4. whether the seller is aware of any prior or pending litigation or government agency or administrative action, order, or lien on the premises related to the release of any hazardous substance;

5. (a) whether there are smoke and carbon monoxide detectors located in a dwelling on the premises, (b) the number of detectors, and (c) if there have been any problems with the detectors, and explain the problem; and

6. whether during the seller's ownership, there is or was an underground storage tank on the property and if so, whether it was removed. If the tank was removed and within the seller's possession and control, he or she must provide any and all documentation of removal with information on when and who removed it.

The act also increases the credit, from $300 to $500, that the seller must give the purchaser at closing if he or she does not furnish the written residential property condition disclosure report.

EFFECTIVE DATE: July 1, 2012

BACKGROUND

Residential Property Condition Disclosure Report

With certain exceptions, the law requires someone who offers residential property with one to four units for sale, exchange, or lease with the option to buy, to provide a property disclosure report to a potential buyer before the transaction is executed. A copy of the report must be attached to any written offer, binder, or contract to purchase. By law, the report must include information on municipal water or sewer assessments, the presence of leased equipment on the premises, and whether the property is located in a historic or village district or on the National Register of Historic Places. The seller's representations are limited to his or her actual knowledge and the report does not create any new express or implied warranties (CGS 20-327b).

OLR Tracking: DC: JKL: VR: eh: tjo