Bill Text: CT SB00270 | 2014 | General Assembly | Introduced

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Bill Title: An Act Concerning Commercial Real Estate Condition Reports.

Spectrum: Committee Bill

Status: (Introduced - Dead) 2014-03-06 - Public Hearing 03/11 [SB00270 Detail]

Download: Connecticut-2014-SB00270-Introduced.html

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General Assembly		Raised Bill No. 270
February Session, 2014		LCO No. 1704
		*01704_______GL_*
Referred to Committee on GENERAL LAW
Introduced by:
(GL)

AN ACT CONCERNING COMMERCIAL REAL ESTATE CONDITION REPORTS.

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

Section 1. (NEW) (Effective January 1, 2015) (a) For the purposes of this section, "commercial real estate" shall have the meaning set forth in section 38a-92a of the general statutes. Except as otherwise provided in this section, on and after the effective date of regulations adopted pursuant to subsection (d) of this section, each person who offers commercial real estate in the state for sale or lease, shall provide a written commercial real estate condition report to the prospective purchaser or lessee prior to the prospective purchaser's or lessee's execution of any binder, contract to purchase, option or lease for such commercial real estate. A photocopy, duplicate original, facsimile transmission or other exact reproduction or duplicate of the written commercial real estate condition report containing the prospective purchaser's or lessee's written receipt shall be attached to any written offer, binder or contract to purchase or lease. A photocopy, duplicate original, facsimile transmission or other exact reproduction or duplicate of the written commercial real estate condition report containing the signatures of both seller and purchaser or lessor and lessee, as the case may be, shall be attached to any agreement to purchase or lease the property.

(b) The following shall be exempt from the provisions of this section: (1) Any transfer or lease from one or more co-owners solely to one or more of the co-owners; (2) transfers or leases made to the spouse, mother, father, brother, sister, child, grandparent or grandchild of the transferor or lessor where no consideration is paid; (3) transfers or leases pursuant to an order of the court; (4) transfers or leases made by executors, administrators, trustees or conservators; (5) transfers or leases by the federal government, any political subdivision thereof or any corporation, institution or quasi-governmental agency chartered by the federal government; (6) transfers by deed in lieu of foreclosure; (7) transfers or leases by the state of Connecticut or any political subdivision thereof; (8) transfers or leases of property which was the subject of a contract or lease entered into prior to January 1, 2015; and (9) 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 or lease of commercial real estate and shall apply to all transfers, with or without the assistance of a licensed real estate broker or salesperson, as defined in section 20-311 of the general statutes.

(d) Not later than July 1, 2015, the Commissioner of Consumer Protection shall, by regulations adopted in accordance with the provisions of chapter 54 of the general statutes, prescribe the form of the commercial real estate condition report required by subsection (a) of this section.

(e) On and after the effective date of regulations adopted pursuant to subsection (d) of this section, the Commissioner of Consumer Protection shall make available the commercial real estate condition report to 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 report. The commissioner shall also cause information concerning such report and the completion of such report to be disseminated in a manner best calculated, in the commissioner's judgment, to reach members of the public, attorneys and real estate licensees.

(f) On and after the adoption of the regulations required pursuant to subsection (d) of this section, each agreement to purchase or lease commercial real estate, for which a commercial real estate condition report is required pursuant to subsection (a) of this section, shall include a requirement that the seller or lessor credit the purchaser or lessee with the sum of one thousand dollars at closing or upon execution of the lease should the seller or lessor fail to furnish the commercial real estate condition report as required by subsection (a) of this section.

(g) Nothing in this section shall be construed to: (1) Create any new implied or express warranties on behalf of the seller or lessor of commercial property; or (2) require the seller or lessor of commercial property to secure inspections, tests or other methods of determining the physical conditions of the property.

(h) Any representation made by a seller or lessor pursuant to this section or pursuant to regulations adopted pursuant to subsection (d) of this section shall be construed only to extend to the seller's or lessor's actual knowledge of the commercial property and no constructive knowledge shall be imputed to the seller or lessor.

This act shall take effect as follows and shall amend the following sections:
Section 1	January 1, 2015	New section

Statement of Purpose:

To provide prospective purchasers and lessees of commercial real estate with commercial real estate condition reports.

[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]