SB 201 — AN ACT CONCERNING UNFAIR REAL ESTATE LISTING AGREEMENTS AND THE CONNECTICUT UNFAIR TRADE PRACTICES ACT.

Such order shall include the volume and page number of the land records where such agreement, notice or memorandum is recorded or rerecorded, and shall direct the town clerk of the town in which the residential real property is located to discharge the recording or rerecording of such agreement, notice or memorandum as void and unenforceable.

(d) If any unfair real estate listing agreement or notice or memorandum thereof is recorded or rerecorded, any person with an interest in the residential real property that is the subject of such agreement may recover such actual damages, costs and attorney's fees as may be proven against the real estate listing provider who recorded or rerecorded such agreement, notice or memorandum or caused such agreement, notice or memorandum to be recorded or rerecorded.

Such actualdamages, costsandattorney'sfeesshallbeinlieuofanydamages, costs and attorney's fees awarded in any action brought under chapter 735a of the general statutes for a violation of subsection (a) of section 2 of this act.

(NEW) (Effective July 1, 2024) (a)Any Notreal laterestate thanlisting Julyprovider 31,who 2024,records eachor servicererecords, provideror thatcauses enteredto intobe arecorded serviceor agreementrerecorded, onany unfair real estate listing agreement or beforeany Junenotice 30,or 2024,memorandum shallthereof, recordincluding, abut noticenot oflimited suchto, serviceany agreementsuch withagreement, thenotice townor clerkmemorandum ofrecorded thebefore townJuly in1, which2024, theand residentialassigns such real propertyestate thatlisting isprovider'srightsunder thesuchagreement subjectshall,not oflater suchthanthirty servicePublic agreementAct isNo. located.

(b)24-101 Each5 notice recorded pursuant to subsection (a) of this7 section LCO 3 of 15 Substitute Senate Bill No.

201 shalldays includeafter (1) the titledate "Notice of Servicesuch Agreement"assignment, printedprovide innotice notof lesssuch thanassignment fourteen-pointto bold(1) type,any (2)person awho legalholds descriptionany ofinterest in the residential real property that is the subject of thesuch service agreement, (3)(2) the amounttown clerk of the feetown specified in the service agreement or the method by which such fee shall be calculated, (4) the dateresidential orreal circumstancesproperty underthat whichis the obligationsubject setof forthsuch in the service agreement shallis expire,located, (5) the name, address and telephone(3) number of the serviceAttorney provider,General. and (6) if the service provider is (A) an individual, the notarized signature of the individual, or (B) an entity, the notarized signature of an authorized officer or employee of the entity.

(c) If a service provider fails to record the notice required under subsections (a) and (b) of this section on or before July 31, 2024, the service agreement shall be void and unenforceable and any interest in the residential real property that is the subject of such service agreement may be conveyed free and clear of such service agreement.

(NEW) (Effective July 1, 2024) No provision of sections 3 to 6, inclusive, of this act shall be construed to:

(1) Apply to any (A) home warranty or similar product that covers the cost of maintaining any major home system, including, but not limited to, the cost of any electrical, plumbing or heating, ventilation and air conditioning work, for a fixed period, (B) insurance contract, (C) option or right of first refusal to purchase residential real property, (D) declaration, as defined in section 47-202 of the general statutes, (E) maintenance or repair agreement entered into by an association, as defined in section 47-202 of the general statutes, (F) mortgage loan or any commitment to make or receive any such loan, (G) security agreement (i) relating to any sale or rental of any personal property or fixture, and (ii) governed by the Uniform Commercial Code, or (H) cable, electrical, sewer, telephone, water or other regulated utility service provider;

or (2) Impair the rights granted by any mechanic's lien placed upon any residential real property pursuant to chapter 847 of the general statutes.

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201 Sec.

8.

Section 20-417a of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

As used in this section and sections 20-417b to 20-417j, inclusive:

(1) "Certificate" means a certificate of registration issued under section 20-417b;

(2) "Commissioner" means the Commissioner of Consumer Protection or any person designated by the commissioner to administer and enforce this section and sections 20-417b to 20-417j, inclusive;

(3) "Completion" means the stage of construction of a new home in which the new home construction contractor is in receipt of the certificate of occupancy for such new home issued by the municipality in which such new home is constructed;

(4) "Consumer" means the buyer or prospective buyer, or the buyer's or prospective buyer's heirs or designated representatives, of any new home or the owner of property on which a new home is being or will be constructed regardlessof whether such owner obtains a building permit as the owner of the premises affected pursuant to section 29-263;

[(3)] (5) "Contract" means any agreement between a new home construction contractor and a consumer for the construction or sale of a new home or any portion of a new home prior to occupancy;

[(4)] (6) "Engage in the business" means that the person engages in the business for the purpose of compensation or profit;

(7) "New home" means any newly constructed (A) single-family dwelling unit, (B) dwelling consisting of not more than two units, or (C) unit, common element or limited common element in a condominium, as defined in section 47-68a, or in a common interest community, as defined in section 47-202;

[(5)] (8) "New home construction contractor" means any person who contractswithaconsumertoconstructorsellanewhomeor anyportion LCO 5 of 15 Substitute Bill No.

201 of a new home prior to occupancy;

[(6) "New home" means any newly constructed (A) single-family dwelling unit, (B) dwelling consisting of not more than two units, or (C) unit, common element or limited common element in a condominium, as defined in section 47-68a, or in a common interest community, as defined in section 47-202;] [(7)] (9) "Person" means one or more individuals, partnerships, associations, corporations, limited liability companies, business trusts, legal representatives or any organized group of persons;

and [(8) "Consumer" means the buyer or prospective buyer, or the buyer's or prospective buyer's heirs or designated representatives, of any new home or the owner of property on which a new home is being or will be constructed regardlessof whether such owner obtains a building permit as the owner of the premises affected pursuant to section 29-263;

and (9) "Completion" means the stage of construction of a new home in which the new home construction contractor is in receipt of the certificate of occupancy for such new home issued by the municipality in which such new home is constructed.] (10) "Proprietor" means an individual who (A) has an ownership interest in a business entity that holds or has held a certificate issued under section 20-417b, and (B) has been found by a court of competent jurisdiction to have violated any provision of this chapter related to the conduct of a business entity holding a certificate or that has held a certificate issued under section 20-417b within the two years of the effective date of entering into a contract with a consumer harmed by the actions of such business entity or the owner of such business entity.

Sec.

9.

Section 20-417i of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) The commissioner shall establish and maintain the New Home Construction Guaranty Fund.

LCO 6 of 15 Substitute Bill No.

201 (b) Each person who receives a certificate pursuant to sections 20- 417a to 20-417j, inclusive, as amended by this act, shall pay a fee of two hundred forty dollars annually to the New Home Construction Guaranty Fund.

Such fees shall be payable with the fee for an application for a certificate or renewal of a certificate.

(c) (1) For fiscal years commencing on or after July 1, 2003, payments received under subsection(b) ofthis sectionshallbe creditedto theNew Home Construction Guaranty Fund until the balance in the fund equals seven hundred fifty thousand dollars.

Annually, if the balance in the fund exceeds seven hundred fifty thousand dollars, the first three hundred thousand dollars of the excess shall be deposited in the consumer protection enforcement account established in section 21a-8a.

On June 1, 2004, and each June first thereafter, if the balance in the fund exceeds seven hundred fifty thousand dollars, the excess shall be deposited in the General Fund.

(2) Any money in the New Home Construction Guaranty Fund may be invested or reinvested in the same manner as funds of the state employees retirement system and the interest arising from such investments shall be credited to the fund.

(d) Whenever a consumer obtains a binding arbitration decision, a court judgment, order or decree against or regarding any new home constructioncontractorholding a certificate or who has helda certificate under sections 20-417a to 20-417j, inclusive, as amended by this act, or against a proprietor, within two years of the date [of entering] such contractor entered into the contract with the consumer, for loss or damages sustained by reason of any violation of the provisions of sections20-417ato20-417j,inclusive,asamendedbythisact,byaperson holding a certificate under said sections, such consumer may, upon the final determination of, or expiration of time for taking, an appeal in connection with any such decision, judgment, order or decree, apply to the commissioner for an order directing payment out of the New Home Construction Guaranty Fund of the amount, not exceeding thirty thousand dollars, unpaid upon the decision, judgment, order or decree LCO 7 of 15 Substitute Bill No.

201 for actual damages and costs taxed by the court against such contractor or proprietor, exclusive of punitive damages.

The application shall be made on forms provided by the commissioner and shall be accompanied by a copy of the decision, court judgment, order or decree obtained against the new home construction contractor or proprietor together with a statement signed and sworn to by the consumer, affirming that the consumer has:

(1) Complied with all the requirements of this subsection;

(2) obtained a decision, judgment, order or decree stating the amount of the decision, judgment, order or decree and the amount owing on the decision, judgment, order or decree at the date of application;and(3) madeagoodfaithefforttosatisfy any suchdecision, judgment, order or decree in accordance with the provisions of chapter 906, which effort may include causing to be issued a writ of execution upon such decision, judgment, order or decree, [but] provided the officer executing the same has made a return showing that no bank accountsor personalproperty ofsuchcontractor liabletobeleviedupon insatisfactionofthedecision,judgment,orderor decree couldbefound, 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 actual damage portion of the decision, judgment, order or decree or stating the amount realized and the balance remaining due on the decision, judgment, order or decree after application on the decision, judgment, order or decree of the amount realized, except that the requirements of this subdivision shall not apply to a judgment, order or decree obtained by the consumer in small claims court.

A true and attested copy of such executing officer's return, when required, shall be attached to such application.

Whenever the consumer satisfies the commissioner or the commissioner's designee that it is not practicable to comply with the requirementsofsubdivision(3) ofthis subsectionandthat the consumer has taken all reasonable steps to collect the amount of the decision, judgment, order or decree or the unsatisfied part of the decision, judgment, order or decree and has been unable to collect the same, the commissioner or the commissioner's designee may, in the commissioner's or the commissioner's designee's discretion, dispense with the necessity for complying with such requirement.

No application LCO 8 of 15 Substitute Bill No.

201 for an order directing payment out of the fund shall be made later than two years from the final determination of, or expiration of time for taking, an appeal of such decision, court judgment, order or decree and no such application shall be for an amount in excess of thirty thousand dollars.

(e) Upon receipt of such application together with such copy of the decision, court judgment, order or decree, statement and, except as otherwise provided in subsection (d) of this section, true and attested copy of the executing officer's return, the commissioner or the commissioner's designee shall inspect such documents for their veracity and upon a determination that such documents are complete and authentic and that the consumer has not been paid, the commissioner shall order payment out of the New Home Construction Guaranty Fund of the amount not exceeding thirty thousand dollars unpaid upon the decision, judgment, order or decree for actual damages and costs taxed by the court against the contractor or proprietor, exclusive of punitive damages.

(f) [Beginning] (1) During the period beginning on October 1, 2000, and ending on the date immediately preceding the effective date of this section, whenever a consumer is awarded an order of restitution against any new home construction contractor for loss or damages sustained as a result of any violation of the provisions of sections 20-417a to 20-417j, inclusive, as amended by this act, by a person holding a certificate or who has held a certificate under said sections within two years of the date of entering into the contract with the consumer, in [(1)] (A) a proceeding brought bythecommissioner pursuant to subsection [(h)] (i) of this section or subsection (d) of section 42-110d, [(2)] (B) a proceeding brought by the Attorney General pursuant to subsection (a) of section 42-110m, as amended by this act, or subsection (d) of section 42-110d, or [(3)] (C) a criminal proceeding pursuant to section 20-417e, such consumer may, uponthefinaldetermination of,or expirationoftime for taking, an appeal in connection with any such order ofrestitution, apply to the commissioner for an order directing payment out of the New Home Construction Guaranty Fund of the amount not exceeding thirty LCO 9 of 15 Substitute Bill No.

201 thousand dollars unpaid upon the order of restitution.

The commissioner may issue such order upon a determination that the consumer has not been paid.

(2) Beginning on the effective date of this section, whenever a consumer is awarded an order of restitution against any new home construction contractor or proprietor for loss or damages sustained as a result of any violation of the provisions of sections 20-417a to 20-417j, inclusive, as amended by this act, by a person holding a certificate or who has held a certificate under said sections within two years of the date such contractor entered into the contract with the consumer, in (A) a proceeding brought by the commissioner pursuant to subsection (i) of this section or subsection (d) of section 42-110d, (B) a proceeding brought by the Attorney General pursuant to subsection (a) of section 42-110m, as amended by this act, or subsection (d) of section 42-110d, or (C) a criminal proceeding pursuant to section 20-417e, such consumer may, upon the final determination of, or expiration of time for taking, an appeal in connection with any such order of restitution, apply to the commissioner for an order directing payment out of the New Home Construction Guaranty Fund of the amount not exceeding thirty thousand dollars unpaid upon the order of restitution.

The commissioner may issue such order upon a determination that the consumer has not been paid.

(g) Whenever the commissioner orders payment to a consumer out of the New Home Construction Guaranty Fund based upon a decision, judgment, order or decree of restitution, the contractor and proprietor shall be liable for the resulting debt to the New Home Construction Guaranty Fund.

[(g)] (h) Before the commissioner may issue any order directing payment out of the New Home Construction Guaranty Fund to a consumer pursuant to subsection (e) or (f) of this section, the commissioner shall first notify the new home construction contractor of the consumer's application for an order directing payment out of the fund and of the new home construction contractor's right to a hearing LCO 10 of 15 Substitute Bill No.

201 to contest the disbursement in the event that such contractor or proprietor has already paid the consumer.

Such notice shall be given to the new home construction contractor not later than fifteen days after receipt by the commissioner of the consumer's application for an order directing payment out of the fund.

If the new home construction contractor requests a hearing, in writing, by certified mail not later than fifteen days after receiving the notice from the commissioner, the commissioner shall grant such request and shall conduct a hearing in accordance with the provisions of chapter 54.

If the commissioner does not receive awrittenrequest for ahearing by certifiedmailfromthenew home construction contractor on or before the fifteenth day from the contractor's receipt of such notice, the commissioner shall conclude that the consumer has not been paid, and the commissioner shall issue an order directing payment out of the fund for the amount not exceeding thirty thousand dollars unpaid upon the judgment, order or decree for actual damages and costs taxed by the court against the new home construction contractor or proprietor, exclusive of punitive damages, or for the amount not exceeding thirty thousand dollars unpaid upon the order of restitution.

[(h)] (i) The commissioner or the commissioner's designee may proceed against any new home construction contractor holding a certificate or who has held a certificate under sections 20-417a to 20-417j, inclusive, as amended by this act, within two years of the effective date of entering into the contract with the consumer, for an order of restitution arising from loss or damages sustained by any consumer as a result of any violation of the provisions of said sections 20-417a to 20- 417j, inclusive, by the contractor or proprietor.

Any such proceeding shall be held in accordance with the provisions of chapter 54.

In the course of such proceeding, the commissioner or the commissioner's designee shall decide whether to (1) exercise the powers specified in section 20-417c, (2) order restitution arising from loss or damages sustained by any consumer as a result of any violation of the provisions of sections 20-417a to 20-417j, inclusive, as amended by this act, and (3) order payment out of the New Home Construction Guaranty Fund.

LCO 11 of 15 Substitute Bill No.

201 Notwithstanding the provisions of chapter 54, the decision of the commissioner or the commissioner's designee shall be final with respect to any proceeding to order payment out of the fund and the commissioner and the commissioner's designee shall not be subject to the requirements of chapter 54 as such requirements relate to an appeal from any such decision.

The commissioner or the commissioner's designee may hear complaints of all consumers submitting claims against a single new home construction contractor in one proceeding.

[(i)] (j) No application for an order directing payment out of the New Home Construction Guaranty Fund shall be made later than two years from the final determination of, or expiration of time for, an appeal in connection with any judgment, order or decree of restitution, and no such application shall be for an amount in excess of thirty thousand dollars.

[(j)] (k) In order to preserve the integrity of the New Home Construction Guaranty Fund, the commissioner, in the commissioner's sole discretion, may order payment out of the fund of an amount less than the actual loss or damages incurred by the consumer or less than the order of restitution awarded by the commissioner or the Superior Court.

In no event shall any payment out of the fund be in excess of thirty thousand dollars for any single claim by a consumer.

[(k)] (l) If the money deposited in the New Home Construction Guaranty Fund is insufficient to satisfy any duly authorized claim or portion of a claim, the commissioner shall, when sufficient money has been deposited in the fund, satisfy such unpaid claims or portions of claims not exceeding thirty thousand dollars, in the order that such claims or portions of claims were originally determined.

[(l)] (m) Whenever the commissioner has caused any sum to be paid from the New Home Construction Guaranty Fund to a consumer, the commissioner shall be subrogated to all of the rights of the consumer up to the amount paid plus reasonable interest, and prior to receipt of any payment from the fund, the consumer shall assign all of the consumer's LCO 12 of 15 Substitute Bill No.

201 right, title and interest in the claim up to such amount to the commissioner, and any amount and interest recovered by the commissioner on the claim shall be deposited in the fund.

[(m)] (n) If the commissioner orders the payment of any amount as a result of a guaranty fund claim against a new home construction contractor or proprietor, the commissioner shall determine if such contractor is possessed of assets liable to be sold or applied in satisfaction of the claim on the New Home Construction Guaranty Fund.

If the commissioner discovers any such assets, the commissioner may request that the Attorney General take any action necessary for the reimbursement of the fund.

[(n)] (o) If the commissioner orders the payment of an amount as a result of a guaranty fund claim against a new home construction contractor, the commissioner may, after notice and hearing in accordance with the provisions of chapter 54, revoke the certificate of such contractor and such contractor shall not be eligible to receive anew or renewed certificate until such contractor has repaid such amount in full, plus interest from the time such payment is made from the New Home Construction Guaranty Fund, at a rate to be in accordance with section 37-3b, except that the commissioner may, in the commissioner's sole discretion, permit a new home construction contractor to receive a new or renewed certificate after such contractor has entered into an agreement with the commissioner whereby such contractor agrees to repay the fund in full in the form of periodic payments over a set period of time.

Any such agreement shall include a provision providing for the summary suspension of any and all certificates held by the new home construction contractor if payment is not made in accordance with the terms of the agreement.

Sec.

10.

In the administration of this chapter, the commissioner may accept an assurance of voluntary compliance with respect to any method, act LCOor 13practice deemed in violation of 15this Substitutechapter Billfrom No.any person alleged to be engaged or to have been engaged in such method, act or practice.

201 or practice deemed in violation of this chapter from any person alleged to be engaged or to have been engaged in such method, act or practice.

11.8.

(a) Whenever the commissioner has reason to believe that any person has been engaged or is engaged in an alleged violation of any provision of this chapter said commissioner may proceed as provided in sections 42-110d and 42-110e or may request the Attorney General to apply in the name of the state of Connecticut to the Superior Court for an order temporarilyPublic orAct permanentlyNo. restraining and enjoining the continuance of such act or acts or for an order directing restitution and the appointment of a receiver in appropriate instances, or both.

24-101 6 of 7 Substitute Senate Bill No.

201 temporarily or permanently restraining and enjoining the continuance of such act or acts or for an order directing restitution and the appointment of a receiver in appropriate instances, or both.

LCOSec. 14 of 15 Substitute Bill No.

2019. Sec.

12.

ThisApproved actJune shall4, take2024 effectPublic asAct followsNo. and shall amend the following sections:

October24-101 1,7 2024of Section7 1 New section Sec.

2 July 1, 2024 New section Sec.

3 July 1, 2024 New section Sec.

4 July 1, 2024 New section Sec.

5 July 1, 2024 New section Sec.

6 July 1, 2024 New section Sec.

7 July 1, 2024 New section from passage Sec.

8 20-417a Sec.

9 from passage 20-417i Sec.

10 from passage 42-110j Sec.

11 from passage 42-110m(a) Sec.

12 from passage 42-110o(b) GL Joint Favorable Subst.

JUD Joint Favorable LCO 15 of 15