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Senate Bill No. 457

PUBLIC ACT NO. 96-200

AN ACT CONCERNING REAL ESTATE.

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

Section 1. Section 1 of public act 95-311 is repealed and the following is substituted in lieu thereof:

(a) Except as otherwise provided, each person who offers residential property in the state for sale, exchange or for lease with option to buy, shall provide a written residential condition report to the prospective purchaser AT ANY TIME prior to the prospective purchaser's execution of any binder, contract to purchase, option, or lease containing a purchase option. A photocopy DUPLICATE ORIGINAL, FACSIMILE TRANSMISSION or other exact reproduction or duplicate of the written residential condition report containing the prospective purchaser's written receipt shall be attached to any WRITTEN OFFER binder or contract to purchase. [An original copy of the report, signed by] A PHOTOCOPY, DUPLICATE ORIGINAL, FACSIMILE TRANSMISSION OR OTHER EXACT REPRODUCTION OR DUPLICATE OF THE WRITTEN RESIDENTIAL CONDITION REPORT CONTAINING THE SIGNATURES OF both seller and purchaser, shall be attached to any agreement to purchase the property.

(b) The following shall be exempt from the provisions of this section: (1) Any transfer from one or more coowners solely to one or more of his coowners; (2) transfers made to the spouse, mother, father, brother, sister, child, grandparent or grandchild of the transferor where no consideration is paid; (3) transfers pursuant to an order of the court; (4) transfers of newly-constructed residential real property for which an implied warranty is provided under chapter 827 of the general statutes; (5) transfers made by executors, administrators, trustees or conservators; (6) transfers by the federal government, any political subdivision thereof, or any corporation, institution or quasi-governmental agency chartered by the federal government; (7) transfers by deed in lieu of foreclosure; (8) transfers by the state of Connecticut or any political subdivision thereof; (9) transfers of property which was the subject of a contract or option entered into prior to the effective date of this act; and (10) any transfer of property acquired by a judgment of STRICT FORECLOSURE OR BY foreclosure by sale or by a deed in lieu of foreclosure.

(c) The provisions of this section shall apply only to transfers by sale, exchange or lease with option to buy, of residential real property consisting of not less than one nor more than four dwelling units WHICH SHALL INCLUDE COOPERATIVES AND CONDOMINIUMS, and shall apply to all transfers, with or without the assistance of a licensed real estate broker or [salesman] SALESPERSON, as defined in section 20-311 AS AMENDED.

(d) (1) On or before January 1, 1996, the Commissioner of Consumer Protection, shall, by regulations adopted in accordance with the provisions of chapter 54, prescribe the form of the written residential disclosure report required by [this act] PUBLIC ACT 95-311m. (2) Such form of the written residential disclosure report shall contain the following: (A) A certification by the seller in the following form: "To the extent of the seller's knowledge as a property owner, the seller acknowledges that the information contained above is true and accurate for those areas of the property listed. In the event a real estate broker or salesperson is utilized, the seller authorizes the brokers or salespersons to provide the above information to prospective buyers, selling agents or buyers' agents.

.... (Date) .... (Seller)

.... (Date) .... (Seller)"

(B) A certification by the buyer in the following form:

"The buyer is urged to carefully inspect the

property and, if desired, to have the property

inspected by an expert. The buyer understands that

there are areas of the property for which the

seller has no knowledge and that this disclosure

statement does not encompass those areas. The

buyer also acknowledges that the buyer has read

and received a signed copy of this statement from

the seller or seller's agent.

.... (Date) .... (Buyer)

.... (Date) .... (Buyer)"

(C) A statement concerning the responsibility of real estate brokers in the following form:

"This report in no way relieves a real estate

broker of his or her obligation under the

provisions of section 20-328-5a of the Regulations

of Connecticut State Agencies to disclose any

material facts. Failure to do so could result in

punitive action taken against the broker, such as

fines, suspension or revocation of license."

(D) A statement that any representations made by the seller on the written residential disclosure report shall not constitute a warranty to the buyer. (E) A statement that the written residential disclosure report is not a substitute for inspections, tests and other methods of determining the physical condition of property. (F) Information concerning environmental matters such as lead, radon, subsurface sewage disposal and such other topics as the Commissioner of Consumer Protection may determine would be of interest to a buyer.

(e) On or after January 1, 1996, the Commissioner of Consumer Protection shall make available the residential disclosure report prescribed in accordance with the provisions of [this act] PUBLIC ACT 95-311 to the division of real estate, all municipal town clerks, the Connecticut Association of Realtors, Inc., and any other person or institution that the commissioner believes would aid in the dissemination and distribution of such form. The commissioner shall also cause information concerning such form and the completion of such form to be disseminated in a manner best calculated, in the commissioner's judgment, to reach members of the public, attorneys and real estate licensees.

Sec. 2. Subdivision (2) of section 20-311 of the general statutes, as amended by section 65 of public act 95-79, is repealed and the following is substituted in lieu thereof:

(2) ["Real estate salesman"] "REAL ESTATE SALESPERSON" means a person affiliated with any real estate broker as an independent contractor or employed by a real estate broker to list for sale, sell or offer for sale, to buy or offer to buy or to negotiate the purchase or sale or exchange of real estate, or to offer for resale, a mobile manufactured home, as defined in subsection (a) of section 21-64, AS AMENDED or to lease or rent or offer to lease, rent or place for rent any real estate, or to collect or offer or attempt to collect rent for the use of real estate for or in behalf of such real estate broker, or who offers, sells or attempts to sell the real estate or mobile manufactured homes of a licensed broker, provided employees of any real estate broker whose principal occupation is clerical work in an office, or janitors or custodians engaged principally in that occupation, shall not be deemed to be real estate [salesmen] SALESPERSONS within the terms of this chapter.

Sec. 3. Subsection (b) of section 20-311a of the general statutes is repealed and the following is substituted in lieu thereof:

(b) The Real Estate Commission shall consist of eight persons, electors of the state, appointed by the Governor. Three of the members shall be at the time of appointment licensed real estate brokers, two of the members shall be at the time of appointment licensed real estate [salesmen] SALESPERSONS and three of the members shall be public members. Not more than a bare majority of said commission shall be members of the same political party and there shall be at least one member from each congressional district.

Sec. 4. Subsection (b) of section 20-311b of the general statutes is repealed and the following is substituted in lieu thereof:

(b) (1) The Real Estate Commission shall authorize the Department of Consumer Protection to issue licenses to real estate brokers and real estate [salesmen] SALESPERSONS. The Real Estate Commission shall receive and approve applications for real estate student intern programs pursuant to the provisions of section 20-314c. (2) The Real Estate Commission shall administer the provisions of this chapter as to licensure and issuance, renewal, suspension or revocation of licenses concerning the real estate business.

Sec. 5. Section 20-311f of the general statutes is repealed and the following is substituted in lieu thereof:

The commission shall have power to act as a board of arbitration to consider and decide any dispute over commissions arising between brokers or [salesmen] SALESPERSONS voluntarily submitted to the commission by the parties to such dispute.

Sec. 6. Section 20-312 of the general statutes, as amended by section 1 of public act 95-158, is repealed and the following is substituted in lieu thereof:

(a) No person shall act as a real estate broker or real estate [salesman] SALESPERSON without a license issued by the commission, unless exempted by the provisions of this chapter. The Commissioner of Consumer Protection may enter into any contract for the purpose of administratively processing the renewal of licenses on behalf of the Connecticut Real Estate Commission.

(b) No partnership, association or corporation shall be granted a real estate broker's license, unless every member or officer of such partnership, association or corporation who actively participates in its real estate brokerage business holds a license as a real estate broker, and unless every employee who acts as [salesman] SALESPERSON for such partnership, association or corporation and every [salesman] SALESPERSON who is affiliated with such partnership, association or corporation as an independent contractor holds a license as a real estate [salesman] SALESPERSON. A partnership, association or corporation shall designate in its application the individual who is to serve as broker under the license.

Sec. 7. Section 20-312a of the general statutes is repealed and the following is substituted in lieu thereof:

In any action brought by a third party against a real estate [salesman] SALESPERSON affiliated with a real estate broker as an independent contractor, such broker shall be liable to the same extent as if such affiliate had been employed as a real estate [salesman] SALESPERSON by such broker.

Sec. 8. Section 20-312b of the general statutes is repealed and the following is substituted in lieu thereof:

A licensed real estate broker or real estate [salesman] SALESPERSON shall not be considered an employee under the provisions of section 31-275 AS AMENDED if substantially all of the remuneration for the services performed by such broker or [salesman] SALESPERSON, whether paid in cash or otherwise, is directly related to sales or other output rather than to the number of hours worked, and such services are performed by the broker or [salesman] SALESPERSON pursuant to a written contract that contains the following provisions: (1) The broker or [salesman] SALESPERSON, for purposes of workers' compensation, is engaged as an independent contractor associated with the person for whom services are performed; (2) The broker or [salesman] SALESPERSON shall be paid a commission based on his gross sales, if any, without deduction for taxes, which commission shall be directly related to sales or other output; (3) The broker or [salesman] SALESPERSON shall not receive any remuneration related to the number of hours worked and shall not be treated as an employee with respect to such services for purposes of workers' compensation; (4) The broker or [salesman] SALESPERSON shall be permitted to work any hours he chooses; (5) The broker or [salesman] SALESPERSON shall be permitted to work out of his own home or the office of the person for whom services are performed; (6) The broker or [salesman] SALESPERSON shall be free to engage in outside employment; (7) The person for whom the services are performed may provide office facilities and supplies for the use of the broker or [salesman] SALESPERSON, but the broker or [salesman] SALESPERSON shall otherwise pay his own expenses, including, but not limited to, automobile, travel and entertainment expenses; and (8) The contract may be terminated by either party at any time upon notice given to the other.

Sec. 9. Section 20-314 of the general statutes is repealed and the following is substituted in lieu thereof:

(a) Licenses shall be granted only to persons who bear a good reputation for honesty, truthfulness and fair dealing and who are competent to transact the business of a real estate broker or real estate [salesman] SALESPERSON in such manner as to safeguard the interests of the public.

(b) Each application for a license or for a renewal thereof shall be made in writing, on such forms and in such manner as is prescribed by the Department of Consumer Protection and accompanied by such evidence in support of such application as is prescribed by the commission. The commission may require such information with regard to an applicant as it deems desirable, with due regard to the paramount interests of the public, as to the honesty, truthfulness, integrity and competency of the applicant and, where the applicant is a corporation, association or partnership, as to the honesty, truthfulness, integrity and competency of the officers of such corporation or the members of such association or partnership.

(c) In order to determine the competency of any applicant for a real estate broker's license or a real estate [salesman's] SALESPERSON'S license the commission shall, on payment to it of an application fee of sixty dollars, by an applicant for a real estate broker's license or on payment to it of an application fee of forty dollars by an applicant for a real estate [salesman's] SALESPERSON'S license, subject such applicant to personal written examination as to his competency to act as a real estate broker or real estate [salesman] SALESPERSON, as the case may be. Such examination shall be prepared by the Department of Consumer Protection or by a national testing service designated by the Commissioner of Consumer Protection, and shall be administered to applicants by the Department of Consumer Protection or by such testing service at such times and places as said commissioner may deem necessary. The commission may waive the uniform portion of the written examination requirement in the case of an applicant who has taken the national testing service examination in another state within two years from the date of application and has received a score deemed satisfactory by the commission. The Commissioner of Consumer Protection shall adopt regulations establishing passing scores for examinations. In addition to such application fee, applicants taking the examination administered by a national testing service shall be required to pay directly to such testing service an examination fee covering the cost of such examination. Each payment of such application fee shall entitle the applicant to take such examination four times within the one-year period from the date of payment. Eligibility to take such examination may be renewed annually upon payment of an additional five-dollar fee.

(d) (1) Each applicant for a real estate broker's license shall, before being admitted to such examination, prove to the satisfaction of the Real Estate Commission: (A) (i) That he has been actively engaged for at least two years as a licensed real estate [salesman] SALESPERSON under the supervision of a licensed real estate broker in this state, (ii) that he has successfully completed a course approved by the commission in real estate principles and practices of at least thirty classroom hours of study, (iii) that he has successfully completed a course approved by the commission in real estate appraisal consisting of at least thirty classroom hours of study, and (iv) that he has successfully completed a course approved by the commission consisting of at least thirty classroom hours as prescribed by the commission, or (B) that he has equivalent experience or education as determined by the commission. (2) Each applicant for a real estate [salesman's] SALESPERSON'S license shall, before being admitted to such examination, prove to the satisfaction of the Real Estate Commission (A) that he has successfully completed a course approved by the commission in real estate principles and practices consisting of at least thirty classroom hours of study, or (B) that he has equivalent experience or education as determined by the commission.

(e) The provisions of subsections (c) and (d) of this section shall not apply to any renewal of a real estate broker's license, or a real estate [salesman's] SALESPERSON'S license issued prior to October 1, 1973.

(f) All licenses issued under the provisions of this chapter shall expire annually. At the time of application for a real estate broker's license, there shall be paid to the Real Estate Commission, for each individual applicant and for each proposed active member or officer of a firm, partnership, association or corporation, the sum of four hundred fifty dollars, and for the annual renewal thereof, the sum of three hundred dollars and for a real estate [salesman's] SALESPERSON'S license two hundred twenty-five dollars and for the annual renewal thereof the sum of two hundred twenty-five dollars. If a license is not issued, the fee shall be returned. Persons holding a current real estate broker's or [salesman's] SALESPERSON'S license shall not be required to pay the fee for a residential appraiser's license or renewal thereof until April 30, 1992, provided they have met all requirements set forth in sections 20-508 to 20-511, inclusive, and 20-515. A real estate broker's license issued to any partnership, association or corporation shall entitle the individual designated in the application, as provided in section 20-312, AS AMENDED BY SECTION 6 OF THIS ACT upon compliance with the terms of this chapter, but without the payment of any further fee, to perform all of the acts of a real estate broker contemplated by this chapter on behalf of such partnership, association or corporation. Any license which expires pursuant to this subsection may be reinstated by the commission, if, not later than two years after the date of expiration, the former licensee pays to the commission for each real estate broker's license the sum of three hundred dollars and for each real estate [salesman's] SALESPERSON'S license the sum of two hundred twenty-five dollars for each year or fraction thereof from the date of expiration of the previous license to the date of payment for reinstatement, except that any licensee whose license expired after his entering military service shall be reinstated without payment of any fee if an application for reinstatement is filed with the commission within two years after the date of expiration. Any such reinstated license shall expire on the next succeeding April thirtieth.

(g) Any person whose application has been filed as herein provided who is refused a license shall be given notice and afforded opportunity for hearing as provided in the regulations established by the Commissioner of Consumer Protection.

Sec. 10. Section 20-316 of the general statutes is repealed and the following is substituted in lieu thereof:

(a) No license shall be denied by the Real Estate Commission to any applicant who has been convicted of forgery, embezzlement, obtaining money under false pretenses, extortion, criminal conspiracy to defraud, or other like offense or offenses, or to any association or partnership of which such person is a member, or to any corporation of which such person is an officer or in which as a stockholder such person has or exercises a controlling interest either directly or indirectly except in accordance with the provisions of section 46a-80.

(b) No license shall be issued by the Department of Consumer Protection to any applicant (1) whose application for a license as a real estate broker or real estate [salesman] SALESPERSON has, within one year prior to the date of his application hereunder, been rejected in this state, in any other state or in the District of Columbia or (2) whose license as a real estate broker or real estate [salesman] SALESPERSON has, within one year prior to the date of his application hereunder, been revoked in this state, in any other state or in the District of Columbia.

(c) No license as a real estate broker or real estate [salesman] SALESPERSON shall be issued to any person who has not attained the age of eighteen years.

(d) The provisions of this section shall apply to all applicants for licenses, whether or not such applicant was engaged in the real estate business in this state on July 1, 1953, and whenever his application is filed.

Sec. 11. Subsection (a) of section 20-317 of the general statutes is repealed and the following is substituted in lieu thereof:

(a) A nonresident of this state may become a real estate broker or real estate [salesman] SALESPERSON by conforming to all of the provisions of this chapter. The commission shall recognize a current, valid license issued to a currently practicing, competent real estate broker or real estate [salesman] SALESPERSON by another state as satisfactorily qualifying him for a license as a real estate broker or real estate [salesman] SALESPERSON under this chapter, provided the laws of the state of which he is a resident require that applicants for licenses as real estate brokers and real estate [salesmen] SALESPERSONS shall establish their competency by written examinations and permit licenses to be issued to residents of the state of Connecticut, licensed under this chapter, without examination and provided further that the licensure requirements of such state are substantially similar to, or higher than those of this state, and such broker or [salesman] SALESPERSON has no disciplinary proceeding or unresolved complaint pending against him. If the applicant is a resident of a state which does not have such requirement, such applicant shall be required to pass the Connecticut portion of the real estate examination.

Sec. 12. Subsection (b) of section 20-319 of the general statutes is repealed and the following is substituted in lieu thereof:

(b) There is hereby established an annual renewal license to be issued by the Department of Consumer Protection. Persons licensed in accordance with the provisions of this chapter shall fulfill a continuing education requirement. Applicants for an annual renewal license for real estate brokers or [salesmen] SALESPERSONS shall, in addition to the other requirements imposed by the provisions of this chapter, [on or before May 1, 1986, and biennially thereafter within] IN any even-numbered year, submit proof of compliance with the continuing education requirements of this subsection to the Real Estate Commission, accompanied by an eight-dollar processing fee. The continuing education requirement may be satisfied by successful completion of any of the following during the two-year period preceding such renewal: (1) A course or courses, approved by the commission, of continuing education in current real estate practices and licensing laws consisting of not less than twelve hours of classroom study; or (2) a written examination prepared and administered by either the Department of Consumer Protection, or by a national testing service approved by the department, which demonstrates a knowledge of current real estate practices and licensing laws; or (3) equivalent continuing educational experience or study as determined by regulations adopted pursuant to subsection (d). An applicant for examination under subdivision (2) of this subsection shall pay the required examination fee to the national testing service, if administered by such testing service or to the Department of Consumer Protection, if administered by the department.

Sec. 13. Subsection (a) of section 20-319a of the general statutes is repealed and the following is substituted in lieu thereof:

(a) Any licensed real estate [salesman] SALESPERSON who transfers his employment from one broker to another or his affiliation with a broker as an independent contractor shall register such transfer with, and pay a registration fee of twenty-five dollars to, the real estate commission.

Sec. 14. Section 20-320a of the general statutes is repealed and the following is substituted in lieu thereof:

(a) No real estate broker, real estate [salesman] SALESPERSON, as defined in section 20-311, AS AMENDED or any person affiliated with such broker or [salesman] SALESPERSON or any person engaged in the real estate business, as defined in said section, 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 or mortgage 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 Real Estate Commission or upon the verified complaint in writing of any person, provided such complaint, or such complaint together with evidence, documentary or otherwise, presented in connection therewith, shall make out a prima facie case, investigate the actions of any real estate broker or real estate [salesman] SALESPERSON or any person who assumes to act in any of such capacities within this state. The Real Estate Commission shall have the power temporarily to suspend or permanently to revoke any license issued under the provisions of chapter 392, 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, it finds that the licensee is guilty of violating any of the provisions of subsection (a) of this section.

Sec. 15. Section 20-324a of the general statutes, as amended by section 2 of public act 95-158, is repealed and the following is substituted in lieu thereof:

The Connecticut Real Estate Commission is authorized and directed to establish and maintain a Real Estate Guaranty Fund from which, subject to the provisions of sections 20-324a to 20-324j, inclusive, AS AMENDED BY THIS ACT any person aggrieved by any action of a real estate broker or real estate [salesman] SALESPERSON, duly licensed in this state under section 20-312, AS AMENDED BY SECTION 6 OF THIS ACT 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 [salesman] 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, AS AMENDED BY SECTION 17 OF THIS ACT 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.

Sec. 16. Section 20-324b of the general statutes is repealed and the following is substituted in lieu thereof:

Any person who receives a real estate broker's or real estate [salesman's] SALESPERSON'S license for the first time shall pay an additional fee of twenty dollars in addition to all other fees payable, which additional fee shall be credited to the Real Estate Guaranty Fund, provided in no case shall any real estate broker or [salesman] SALESPERSON be required to pay said fee of twenty dollars more than once.

Sec. 17. Section 20-324e of the general statutes, as amended by section 3 of public act 95-158, is repealed and the following is substituted in lieu thereof:

(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 Real Estate 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 Real Estate Commission pursuant to section 20-324d. Said 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 [salesman] 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 [salesman] 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 Real Estate 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 AS AMENDED BY SECTION 15 OF THIS ACT and the limitations specified in this section. The license of any such broker or [salesman] SALESPERSON shall be automatically revoked upon the entry of such judgment.

(c) The Real Estate 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 set out 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 said 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 is possessed of 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 Real Estate 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 Real Estate Commission may in its discretion dispense with the necessity for complying with such requirements.

(e) The Real Estate Commission shall make an order requiring payment from the Real Estate Guaranty Fund of whatever 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, AS AMENDED BY SECTION 15 OF THIS ACT 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 Real Estate Commission pays from said fund any amount in settlement of a claim or toward satisfaction of a judgment against a licensed real estate broker or real estate [salesman] SALESPERSON pursuant to an order under subsection (e), such broker or [salesman] 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 said guaranty 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 said guaranty fund is insufficient to satisfy any duly authorized claim or portion thereof, the Real Estate Commission shall, when sufficient money has been deposited in said guaranty 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.

Sec. 18. Section 20-325 of the general statutes is repealed and the following is substituted in lieu thereof:

Any person who engages in the business of real estate broker or real estate [salesman] SALESPERSON without obtaining a license as herein provided, 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 Real Estate Commission, in its discretion, may grant a license to such person within such one-year period upon application and after a hearing thereon.

Sec. 19. Section 20-329 of the general statutes is repealed and the following is substituted in lieu thereof:

The provisions of this chapter concerning the licensure of real estate brokers and real estate [salesmen] SALESPERSONS shall not apply to any person who as owner or lessor performs any of the acts enumerated in section 20-311, AS AMENDED BY SECTION 2 OF THIS ACT with reference to property owned, leased or sought to be acquired or leased by him, or to his regular employees who are employed as on-site residential superintendents or custodians, with respect to the property so owned or leased or sought to be acquired or leased when such acts are performed in the regular course of, or as an incident to, the management of such property and the investment therein, or to any person acting as attorney-in-fact under a duly executed power of attorney from the owner authorizing the final consummation by performance of any contract for the sale, leasing or exchange of real estate, or to service rendered by any attorney-at-law in the performance of his duties as such attorney-at-law; or to a receiver, trustee in bankruptcy, administrator, executor or other fiduciary, while acting as such, or any person selling real estate under order of any court, or to a trustee acting under a trust agreement, deed of trust or will, or the regular salaried employees thereof; or to witnesses in court as to the values of real estate, or to persons in the employ of the federal or state government or any political subdivision thereof while acting in the course of such employment; or to any employee of any nonprofit housing corporation which (1) HAS BEEN CERTIFIED AS A TAX-EXEMPT ORGANIZATION UNDER SECTION 501(c)(3) OF THE INTERNAL REVENUE CODE OF 1986, OR ANY SUBSEQUENT CORRESPONDING INTERNAL REVENUE CODE OF THE UNITED STATES, AS FROM TIME TO TIME AMENDED, AND manages a housing project OR (2) MANAGES A HOUSING PROJECT assisted in whole or in part by the federal government pursuant to Section 8 of The United States Housing Act of 1937, as amended, while SUCH EMPLOYEE IS performing [such] duties IN THE REGULAR COURSE OF, OR INCIDENTAL TO, THE MANAGEMENT OF SUCH HOUSING PROJECT; or to any person licensed as a broker in accordance with sections 36a-510 to 36a-524, inclusive, who engages solely in the activities described in subsection (6) of section 36a-510; or to any person licensed to maintain or operate a mobile manufactured home park under chapter 412 who performs any of the acts enumerated in section 20-311, AS AMENDED with reference to lots or mobile manufactured homes within the park or to his employees with respect to lots or mobile manufactured homes within said park when such acts are performed in the regular course of, or incidental to, the management of such property and the investment therein or to persons licensed as sellers of mobile manufactured homes under section 21-67.

Sec. 20. Subdivision (5) of section 20-329a of the general statutes is repealed and the following is substituted in lieu thereof:

(5) ["Salesman"] "SALESPERSON" means any person duly licensed in this state as a real estate [salesman] SALESPERSON.

Sec. 21. Section 20-329h of the general statutes is repealed and the following is substituted in lieu thereof:

(a) No subdivision or lot, parcel, unit or interest in any subdivision shall be disposed of except through a broker, provided nothing herein shall be deemed to prohibit any such broker from employing any [salesman] SALESPERSON, for the specific purpose of offering or disposing of, on behalf of such broker and under contract to him, any lot, parcel, unit or interest in any subdivision. Prior to any offering or disposition, pursuant to any license granted under sections 20-329a to 20-329m, inclusive, AS AMENDED BY THIS ACT the name of such broker shall be placed on file with the commission.

(b) A clearly identified copy of the prospectus, property report or offering statement shall be given to each purchaser by the broker or [salesman] SALESPERSON prior to the execution of any contract for the disposition of any such property. The broker or [salesman] SALESPERSON shall obtain from the purchaser a signed receipt for a copy of such prospectus, property report or offering statement and, if a contract for disposition shall be entered into, the receipt shall be kept in the broker's files for a period of seven years and shall be subject to inspection by the commission. Upon termination of such broker or [salesman's] SALESPERSON'S employment with the developer, all such records shall be turned over to the developer within thirty days and shall be retained by such developer for the duration of the seven-year period.

(c) Any contract or agreement for the disposition of any subdivision or any lot, parcel, unit or interest in any subdivision, not exempted under the provisions of section 20-329b, where the prospectus, property report or offering statement has not been given to the purchaser more than seventy-two hours in advance of his signing such contract or agreement, may be revoked by the purchaser within seventy-two hours after he signed the same or after receipt by him of such prospectus, property report or offering statement, whichever is the later, and the contract or agreement shall so provide, except that the contract or agreement may stipulate that the foregoing revocation authority shall not apply in the case of a purchaser who (1) has received the prospectus, property report or offering statement and inspected the subdivision in advance of signing the contract or agreement, and (2) acknowledges by his signature that he has made such inspection and has read and understood the prospectus, property report or offering statement. Any such revocation shall be in writing in form prescribed by the commission and shall be communicated to the broker within the time limited by this section and all moneys paid by the purchaser under such revoked contract or agreement shall be returned to him immediately by the broker, without any deductions.

Sec. 22. Section 20-329i of the general statutes is repealed and the following is substituted in lieu thereof:

Any broker or real estate [salesman] SALESPERSON violating any provision of section 20-329a to 20-329m, inclusive, AS AMENDED BY THIS ACT shall, in addition to any other penalty imposed by said sections and subject to the provisions of section 20-321, have his real estate broker's or [salesman's] SALESPERSON'S license suspended or revoked by the commission for such time as in the circumstances it considers justified.

Sec. 23. Section 20-526 of the general statutes is repealed and the following is substituted in lieu thereof:

The provisions of sections 20-500 to 20-528, inclusive, AS AMENDED concerning the certification, licensing, tenured licensing or provisional licensing of real estate appraisers shall not apply to (1) any person under contract with a municipality who performs a revaluation of real estate for assessment purposes pursuant to section 12-62 AS AMENDED and (2) any licensed real estate broker or real estate [salesman] SALESPERSON who estimates the value of real estate as part of a market analysis performed for the purpose of a prospective listing or sale of such real estate provided the estimate of value shall not be referred to or be construed as an appraisal.

Sec. 24. Subparagraph (K) of subdivision (5) of subsection (a) of section 31-222 of the general statutes is repealed and the following is substituted in lieu thereof:

(K) Service performed by an individual as an insurance agent, other than an industrial life insurance agent, and service performed by an individual as a real estate [salesman] SALESPERSON, if all such service is performed for remuneration solely by way of commission.

Sec. 25. Section 47-100 of the general statutes is repealed and the following is substituted in lieu thereof:

The sale of real estate syndicate securities shall not be an act requiring licensure as a real estate [salesman] SALESPERSON or broker as defined in section 20-311 AS AMENDED BY SECTION 2 OF THIS ACT.

Sec. 26. Subsection (a) of section 49-7f of the general statutes is repealed and the following is substituted in lieu thereof:

(a) No mortgage broker or lender, as defined in subdivision (5) of section 49-31d, or any person affiliated with such mortgage broker or lender shall receive a fee, commission or other form of referral fee for the referral of any person to (1) a real estate broker, real estate [salesman] SALESPERSON, as defined in section 20-311, AS AMENDED BY SECTION 2 OF THIS ACT or any person affiliated with such broker or [salesman] SALESPERSON or any person engaged in the real estate business, as defined in said section 20-311, AS AMENDED or (2) an attorney-at-law admitted to practice within this state or any person affiliated with such attorney.

Sec. 27. Subsection (a) of section 51-87b of the general statutes is repealed and the following is substituted in lieu thereof:

(a) No attorney-at-law admitted to practice within this state or any person affiliated with such attorney may receive a fee, commission or other form of referral fee for the referral of any person to (1) a real estate broker or real estate [salesman] SALESPERSON, as defined in section 20-311, AS AMENDED BY SECTION 2 OF THIS ACT or any person affiliated with such broker or [salesman] SALESPERSON or any person engaged in the real estate business, as defined in said section 20-311, AS AMENDED or (2) any mortgage broker or mortgage lender, as defined in subdivision (5) of section 49-31d, or any person affiliated with such mortgage broker or lender.

Sec. 28. Subsection (b) of section 10a-123 of the general statutes is repealed and the following is substituted in lieu thereof:

(b) The purposes, objectives and duties of said center shall be as follows: (1) To conduct studies in real estate and urban economics and to publish and disseminate the findings and results of such studies; (2) to assist the teaching program in real estate offered by The University of Connecticut; (3) to supply material to the Connecticut Real Estate Commission for the preparation by it of examinations for real estate [salesmen] SALESPERSONS and brokers, if requested to do so by the commission; (4) to develop and from time to time revise and update materials for use in the extension courses in real estate offered by The University of Connecticut; (5) to assist the Connecticut Real Estate Commission in developing standards for the accreditation of vocational schools and other teaching agencies giving courses in the field of real estate, and standards for the approval of courses in the field of real estate, as and when requested to do so by the commission.

Approved June 3, 1996. Effective October 1, 1996.

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