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Connecticut Public Acts 1996

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Substitute Senate Bill No. 287

PUBLIC ACT NO. 96-159

AN ACT CONCERNING REAL ESTATE BROKERAGE PRACTICES.

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

Section 1. (NEW) No real estate broker shall make any unilateral offer of subagency or agree to compensate, appoint, employ, cooperate with or otherwise affiliate with a subagent for the sale or purchase of real property without the informed written consent of the person for whom the real estate broker represents. Such written consent shall contain the name and real estate license number of the real estate broker to be appointed as the subagent and shall contain a statement notifying the person for whom the real estate broker represents that the law imposes vicarious liability on the principal for the acts of the subagent.

Sec. 2. (NEW) There shall be a conclusive presumption that a person has given his informed consent to a dual agency relationship with a real estate broker if that person executes a written consent in the following form prior to executing any contract or agreement for the purchase, sale or lease of real estate:

DUAL AGENCY CONSENT AGREEMENT

Property Address: ....

Seller(s) or Landlord(s): ....

Buyer(s) or Tenant(s): ....

(1) This Dual Agency Consent Agreement is an addendum to and make part of (check all that apply):

( ) Listing Agreement dated .... between brokerage firm and seller or landlord.

( ) Buyer on tenant agency agreement dated ....between brokerage firm and buyer or tenant.

(2) Seller and buyer (or landlord and tenant, as the case may be) hereby acknowledge and agree that .... (name of brokerage firm) is representing both buyer and seller (or landlord and tenant, as the case may be) in the purchase and sale (or lease) of the above referenced property and that brokerage firm has been and is now the agent of both seller and buyer (or landlord and tenant, as the case may be). Seller and buyer (or landlord and tenant, as the case may be) have both consented to and hereby confirm their consent to this dual representation. (3) Seller and buyer (or landlord and tenant, as the case may be) agree: (A) The brokerage firm shall not be required to and shall not disclose to either buyer or seller (or landlord or tenant, as the case may be) any personal, financial or other confidential information to such other party without the express written consent of the party whose information is disclosed, other than information related to material property defects which are known to the brokerage firm and other information the brokerage firm is required to disclose by law. (B) The brokerage firm may not disclose: (i) To the buyer that the seller (landlord) will accept less than the asking or listed price, unless otherwise instructed to do so in writing by the seller (landlord); (ii) to the seller (landlord) that the buyer (tenant) can or will pay a price greater than the price submitted in a written offer to the seller (landlord), unless otherwise instructed to do so in writing by the buyer (tenant); (iii) the motivation of the seller or buyer (or landlord or tenant, as the case may be) for selling, buying or leasing property, unless otherwise instructed in writing by the respective party; or (iv) that a seller or buyer will agree to financing terms other than those offered, unless instructed in writing by the respective party. (4) Property information available through the multiple listing service or otherwise, including listed and sold properties, which has been requested by either the seller or the buyer (or landlord or tenant, as the case may be) shall be disclosed to both seller and buyer (or landlord and tenant, as the case may be). (5) Both parties are advised to seek competent legal and tax advice with regard to this transaction, and with regard to all documents executed in connection with this transaction, including this Dual Agency Consent Agreement. I have read and understand the above agreement

Buyer Seller Brokerage Firm

(Landlord) (Tenant)

.... .... ....

(Authorized Representative)

.... .... ....

(Company Name)

.... .... ....

Date Date Date

Sec. 3. (NEW) (a) After the termination of an agency relationship between a real estate licensee and a person for whom the real estate licensee represented, no real estate licensee shall: (1) Reveal confidential information concerning that person; (2) use confidential information concerning that person to the person's disadvantage; or (3) use confidential information concerning that person for the real estate broker's or real estate salesman's advantage or the advantage of a third party, except as required by legal process, as necessary to defend the real estate broker or real estate salesman from allegations of wrongful or negligent conduct, or as necessary to prevent the commission of a crime.

(b) For purposes of this section, the term "confidential information" shall mean facts concerning a person's assets; liabilities; income; expenses; motivations to purchase, rent or sell real property; and previous offers received or made to purchase or lease real property which are not part of a public record or file to which access is authorized pursuant to section 1-19 of the general statutes, as amended, or otherwise subject to disclosure as a result of any other general statute or regulation of Connecticut.

Sec. 4. This act shall take effect June 1, 1997, and shall apply to all listing and buyer representation agreements executed on or after that date.

Approved May 31, 1996. Effective June 1, 1997, and applicable as provided in section 4.

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