The Psychological Impact Law has been on the books in Connecticut since1990, yet many REALTORS and homeowners alike to not fully understand howit 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 positiveor that the property was the site of a homicide, other felony or suicide.Even ghosts are considered a psychological impact—which can include, bydefinition, any circumstance which does not affect the physical propertyitself. By law, such factors are not considered relevant to a purchaser’sor lessee’s decision to enter into a transaction.

The Psychological Impact Law has been on the books in Connecticut since1990, yet many REALTORS and homeowners alike to not fully understand howit 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 positiveor that the property was the site of a homicide, other felony or suicide.Even ghosts are considered a psychological impact—which can include, bydefinition, any circumstance which does not affect the physical propertyitself. By law, such factors are not considered relevant to a purchaser’sor lessee’s decision to enter into a transaction.

As far as procedure set by the law, a broker or salesperson asked a questionis required to request an inquiry in writing. They then present the inquiryto the seller or lessor for an answer in writing. The seller or lessor isresponsible for answering the question, which is then delivered to the purchaseror lessee.

The procedures set forth in the Psychological Impact Law should be followedby buyers, sellers and REALTORS when faced with questions about circumstancesconcerning a property that do not involve the physical condition of theproperty 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 orcall at (203) 522-7255.


 

CONNECTICUT ASSOCIATION OF REALTORS, INC.

ACHIEVES TWIN VICTORIES AT THE STATE CAPITOL

1995 will be known for the landmark legislation passed by the ConnecticutGeneral Assembly-the Residential Brokerís Lien, S.B. 218, now waitingGovernor Rowlandís signature, and S.B. 217: Property Condition Disclosure,also passed into law and awaiting signature by the Governor. Both billswere strongly backed by the Connecticut Association of REALTORSÆ,Inc.; the Disclosure bill was a joint effort of the Association and theDepartment of Consumer Protection

The Residential Brokerís Lien, S.B. 218 will give ConnecticutREALTORSÆ a valuable tool to secure their commission claims in residentialsales and leases. S.B. 218 expands on the commercial brokerís lienlaw CAR successfully initiated in 1993. All the procedural safeguards containedin that law will apply to the residential lien. The vote was 23-12 in theSenate and 143-4 in the House.

Property Condition Disclosure, S.B. 217, is a major risk-reduction billwhich CAR backed. It will establish a uniform standard of care for mostsellers, buyers and brokers of residential re-sale properties in Connecticut.This law directs the Consumer Protection Department to prescribe the propertycondition report form through regulations with a January 1, 1996 effectivedate for its use. The Consumer Protection Department supported the bill,and CAR has agreed to assist the Department and the Center for Real Estateat Uconn in making the form widely available.

Twenty-five other states have mandatory requirements for disclosing thecondition of property prior to the sale. The Connecticut Association ofREALTORSÆ, Inc. has been advocating such a law in Connecticut forfive years.

Related articles

A Homebuyer’s Worst Nightmare  A Lesson in Title Insurance

A Homebuyer’s Worst Nightmare A Lesson in Title Insurance

Title insurance for your home is critical to make certain that you are the actual owner of your property.  Most home owners do not think about protecting the title to their home.  This story will help home buyers understand the importance of title insurance. A slight...

Tax Savings for Home Owners

Tax Savings for Home Owners

As predicted in the Mortgage Almanac's winter issue, President Clinton and the Congress have agreed on legislation that gives home owners much bigger savings on capital gains taxes when they sell their homes. Until this year, only home owners 55 years of age or older...

Special Considerations When Buying Condominiums and Town Houses

Special Considerations When Buying Condominiums and Town Houses

Connecticut, Florida, Massachusetts, New York, North Carolina, Rhode Island and South Carolina residents can use our mortgage locator service by clicking purchase or refinance and completing the on-line application. A loan officer who specializes in condominium and...