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Connecticut Public Acts 1996

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Substitute Senate Bill No. 335

PUBLIC ACT NO. 96-105

AN ACT CONCERNING DISPUTED REAL ESTATE DEPOSITS.

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

Section 20-324k of the general statutes is repealed and the following is substituted in lieu thereof:

(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 Real Estate 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 said commission shall deem such examination and audit necessary.

(c) Any such 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 thereto, pending final legal disposition of the same in accordance with the instructions of the person legally entitled thereto.

(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 SAID FUNDS, THE COURT SHALL ALSO ORDER THE DISMISSAL OF ANY CLAIM AGAINST SAID BROKER WHICH CLAIM IS BASED SOLELY ON SAID BROKER'S ROLE AS STAKEHOLDER OF SAID FUNDS.

[(d)] (e) Any broker who willfully violates any provision of this section shall be fined not more than one thousand dollars or imprisoned not more than six months or both.

Approved May 8, 1996. Effective October 1, 1996.

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