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Focus on Connecticut: New Real Estate Laws in 1995
By Eugene A. Marconi
The Psychological Impact Law has been on the books in Connecticut since 1990, yet many REALTORS and homeowners alike to not fully understand how it works.
The law defines a psychological impact as the effects of certain circumstances - such as the fact that the owner of the property could be HIV positive or that the property was the site of a homicide, other felony or suicide. Even ghosts are considered a psychological impact---which can include, by definition, any circumstance which does not affect the physical property itself. By law, such factors are not considered relevant to a purchaser's or lessee's decision to enter into a transaction.
As far as procedure set by the law, a broker or salesperson asked a question is required to request an inquiry in writing. They then present the inquiry to the seller or lessor for an answer in writing. The seller or lessor is responsible for answering the question, which is then delivered to the purchaser or lessee.
The procedures set forth in the Psychological Impact Law should be followed by buyers, sellers and REALTORS when faced with questions about circumstances concerning a property that do not involve the physical condition of the property itself.
Eugene A. Marconi is CAR's VP of Legal Affairs. For more information, contact Holly Reed at 316 Farmington Avenue, Hartford, CT 06105-3300 or call at (203) 522-7255.
CONNECTICUT ASSOCIATION OF REALTORS, INC.
ACHIEVES TWIN VICTORIES AT THE STATE CAPITOL
by Timothy Calnen, CAR's Director of Government Affairs
1995 will be known for the landmark legislation passed by the Connecticut General Assembly-the Residential Brokerís Lien, S.B. 218, now waiting Governor Rowlandís signature, and S.B. 217: Property Condition Disclosure, also passed into law and awaiting signature by the Governor. Both bills were strongly backed by the Connecticut Association of REALTORSÆ, Inc.; the Disclosure bill was a joint effort of the Association and the Department of Consumer Protection
The Residential Brokerís Lien, S.B. 218 will give Connecticut REALTORSÆ a valuable tool to secure their commission claims in residential sales and leases. S.B. 218 expands on the commercial brokerís lien law CAR successfully initiated in 1993. All the procedural safeguards contained in that law will apply to the residential lien. The vote was 23-12 in the Senate and 143-4 in the House.
Property Condition Disclosure, S.B. 217, is a major risk-reduction bill which CAR backed. It will establish a uniform standard of care for most sellers, buyers and brokers of residential re-sale properties in Connecticut. This law directs the Consumer Protection Department to prescribe the property condition report form through regulations with a January 1, 1996 effective date for its use. The Consumer Protection Department supported the bill, and CAR has agreed to assist the Department and the Center for Real Estate at Uconn in making the form widely available.
Twenty-five other states have mandatory requirements for disclosing the condition of property prior to the sale. The Connecticut Association of REALTORSÆ, Inc. has been advocating such a law in Connecticut for five years.
Timothy Calnen is CAR's Director of Government Affairs; For more information, contact Gina Krar at The Connecticut Association of REALTORS at 316 Farmington Avenue, Hartford, CT 06105-3300, (203) 522-7255.