§ 20-311 — Definitions.

Connecticut § 20-311

• Jurisdiction: Connecticut
• Title 20: Professional and Occupational Licensing, Certification, Title Protection and Registration. Examining Boards
• Ch. 392: Real Estate Licensees

Text

As used in this chapter, unless the context otherwise requires: (1) “Advertising” (A) means disseminating, publishing or causing to be posted by way of any (i) print media, including, but not limited to, outdoor signage and periodicals, (ii) audio or video broadcast, streaming or other electronic dissemination, or (iii) written or photographic material disseminated or posted via online, telephonic notification, electronic mail or other electronic means, and (B) does not include any (i) stockholder communication, including, but not limited to, any annual report, interim financial report, proxy material, registration statement, securities prospectus or application for listing a security on a stock exchange, (ii) prospectus, property report, offering statement or other document that any federal agency or agency of another state requires be delivered to a prospective purchaser, (iii) communication addressed to, and relating to the account of, a person who has executed a contract for the purchase of a subdivider's lands, except if such communication concerns the sale of additional lands, or (iv) press release or other communication delivered to a media outlet for general information or public relations purposes, provided no charge is imposed by such media outlet for publication or use of any part of such communication; (2) “Affiliated” means having a working relationship with a real estate licensee by way of an (A) employer-employee relationship, or (B) independent contractor relationship; (3) “Associate broker” means a real estate broker who (A) is affiliated with a supervising licensee as an independent contractor or employed by a supervising licensee, and (B) has the authority to engage in the real estate business on behalf of such supervising licensee; (4) “Business entity” means any association, corporation, limited liability company, limited liability partnership or partnership; (5) “Commercial real estate transaction” means any transaction involving the sale, exchange, lease or sublease of real property other than (A) real property containing any building or structure occupied, or intended to be occupied, by not more than four families, or (B) a single building lot to be used for family or household purposes; (6) “Commission” means the Connecticut Real Estate Commission appointed under the provisions of section 20-311a ; (7) “Confidential information” means any fact concerning a person's assets, expenses, income, liabilities, motivations to purchase, rent or sell real property and previous offers received or made to purchase or lease real property which (A) a client has not authorized for release, or (B) is not (i) a matter of general knowledge, (ii) part of a public record or file to which access is authorized pursuant to section 1-210 , or (iii) otherwise subject to disclosure under any other provision of the general statutes or regulations of Connecticut state agencies; (8) “Custodial broker” means any individual who is (A) licensed as a real estate broker, and (B) temporarily appointed solely to (i) conclude the real estate business matters of another broker who is deceased or incapacitated, (ii) transition such matters to a real estate broker who is alive and not incapacitated, or (iii) assist in transitioning the deceased or incapacitated broker's ownership interest in a business entity that is engaged in the real estate business for the purpose of satisfying the requirements established in section 20-312 ; (9) “Department” means the Department of Consumer Protection; (10) “Designated agency” means the appointment by a real estate broker of one or more brokers or salespersons affiliated with or employed by the real estate broker to solely represent a buyer or tenant as a designated buyer's agent and appoint another to represent a seller or landlord as a designated seller's agent in a transaction; (11) “Designated broker” means the individual real estate broker whom a real estate broker business entity names as the individual broker responsible for the supervision and overall operation of such business entity's engagement in the real estate business in this state; (12) “Designated buyer agent” means a real estate licensee who is designated by the real estate broker by whom such real estate licensee is employed, or with whom such real estate licensee is affiliated, solely to represent a named buyer or tenant client of the real estate broker during the term of a buyer representation agreement or authorization; (13) “Designated seller agent” means a real estate licensee who is designated by the real estate broker by whom such real estate licensee is employed, or with whom such real estate licensee is affiliated, solely to represent a named seller or landlord client of the real estate broker during the term of a listing agreement or authorization; (14) “Development owner” means (A) the owner of record of a multiunit development that is offered for lease, or (B) the parent company of such owner of record if such parent company holds a one hundred per cent ownership interest in such owner of record; (15) “Engage in the real estate business” means to, while acting for another and for a fee, commission or other valuable consideration, negotiate for or offer, or attempt to list for sale, sell, exchange, buy or rent, an estate or interest in real estate or to resell a mobile manufactured home, as defined in section 21-64 ; (16) “Incapacity” means any physical or mental incapacity which prevents an individual from substantially satisfying such individual's duties and responsibilities as a real estate licensee; (17) “Influence residential real estate appraisals” includes, but is not limited to, refusing or intentional failing to refer a homebuyer, or encouraging other real estate licensees not to refer a homebuyer, to a mortgage broker or lender, as such terms are defined in section 36a-760 , based solely on the fact that the mortgage broker or lender uses an appraiser who has provided an appraisal reflecting a fair market value estimate that was less than the sale contract price; (18) “Leasing agent” means any individual, other than a real estate licensee, who (A) acts as an agent for a principal for a commission, fee or other valuable consideration, and (B) engages in leasing or renting activity, including, but not limited to, (i) collecting security deposits, (ii) offering or attempting to negotiate a rental, or (iii) collecting, offering or attempting to collect rent for the use of real estate; (19) “Multiunit development” means any residential complex with at least fifty units that are leased or available to be leased; (20) “Negotiate” means acting, directly or indirectly, as an intermediary by facilitating, or participating in, communications between parties related to the parties' interests in a real estate or mobile manufactured home transaction; (21) “Nonmaterial fact concerning real property” means any fact, set of facts or circumstances surrounding real property which includes, but is not limited to, the fact that (A) an occupant of real property is or has been infected with a disease on the list of reportable diseases, emergency illnesses and health conditions issued by the Commissioner of Public Health pursuant to section 19a-2a , or (B) the real property was at any time suspected to have been the site of a death or felony; (22) “Person” means any individual or business entity; (23) “Promotional note” (A) means any promissory note that (i) is secured by a trust deed executed (I) on unimproved real property, (II) after construction of an improvement of real property but before the first sale of such property so improved, or (III) as a means of financing the first purchase of such property so improved, and (ii) is subordinate, or which by its terms may become subordinate, to any other trust deed on such property, and (B) does not include any note which was executed more than three years prior to being offered for sale or was secured by a first trust deed on real property in a subdivision, which evidences a bona fide loan made in connection with the financing of the usual costs of the development of one or more residential, commercial or industrial buildings on the property under a written agreement providing (i) for either the disbursement of the loan funds as costs are incurred or in relation to the progress of the work, and (ii) for title insurance insuring the priority of the security as against mechanic's liens or for the final disbursement of at least ten per cent of the loan funds after the expiration of the period for the filing of mechanic's liens; (24) “Prospective party” means any person that communicates with a real estate licensee in contemplation of potential representation by the real estate licensee in a real estate transaction; (25) “Real estate broker” or “broker” means (A) any person engaged in the real estate business, and (B) any person employed by or on behalf of the owner or owners of lots or other parcels of real estate, at a stated salary, upon commission, upon a salary and commission basis or otherwise to sell such real estate, or any parts thereof, in lots or other parcels, and who sells or exchanges, or offers, attempts or agrees to negotiate the sale or exchange of, any such lot or parcel of real estate; (26) “Real estate licensee” means any real estate broker or real estate salesperson licensed pursuant to this chapter; (27) “Real estate salesperson” or “salesperson” means any individual who is affiliated with a supervising licensee to (A) engage in the real estate business for or on behalf of such supervising licensee, or (B) if such individual is acting for another person as a designated seller agent or designated buyer agent, engage in the real estate business; (28) “Real estate transaction” means any transaction in which (A) real property is legally transferred to another person, or (B) a lease agreement is executed between a landlord and a tenant; (29) “Residential real property” means any one to four-family residential real estate located in this state, including, but not limited to, (A) a cooperative or condominium where the total number of units in such cooperative or condominium does not exceed four units, and (B) any individual unit within a multiunit development; (30) “School” means any person that offers prelicensing or continuing education courses approved pursuant to this chapter; (31) “Supervising licensee” means the real estate broker that is responsible for controlling and supervising another real estate licensee or a team; (32) “Team” means any combination of at least two licensed real estate brokers, designated brokers or real estate salespersons who are affiliated with the same supervising licensee and engage in advertising as a group using a team name; and (33) “Team name” means the name used to refer to a team in team advertisements.

Legislative History

(1953, 1955, S. 2339d; 1967, P.A. 460, S. 7; P.A. 73-163, S. 1; P.A. 78-147, S. 1; P.A. 81-142; P.A. 82-472, S. 88, 183; June Sp. Sess. P.A. 83-3, S. 1; P.A. 87-260, S. 1; P.A. 88-329, S. 1, 15; P.A. 89-347, S. 8; P.A. 90-332, S. 1, 32; P.A. 91-229, S. 1, 19; P.A. 93-354, S. 1, 54; P.A. 94-36, S. 41, 42; P.A. 95-79, S. 65, 189; P.A. 96-200, S. 2; P.A. 98-10, S. 1; P.A. 99-229, S. 1; P.A. 00-160, S. 1; P.A. 21-167, S. 1; P.A. 23-84, S. 1.) History: 1967 act updated statute to delete definition for insurance commissioner in Subsec. (e) and substituted real estate commission to which his duties and powers re real estate brokers and salesmen were transferred; P.A. 73-163 specified real estate broker as one who lists property “with a referral service” in Subsec. (a); P.A. 78-147 redefined real estate salesman to include persons “affiliated with any real estate broker as an independent contractor”; P.A. 81-142 added references to sales of mobile homes in definitions; P.A. 82-472 replaced alphabetic Subdiv. indicators with numeric indicators; June Sp. Sess. P.A. 83-3 changed references in Subdivs. (1), (2) and (3) to mobile home or homes to references to mobile manufactured home or homes; P.A. 87-260 amended the definition of “real estate broker” to delete provision including within said definition any person who engages in the business, for a fee, in connection with a contract whereby he undertakes to promote the sale of real estate through listing such property with a referral service or in certain publications, amended the definition of “real estate salesman” to delete provision including within said definition any person who in behalf of a real estate broker solicits contracts undertaking the promotion of the sale of real estate through listing such property in certain publications, and amended the definition of “engaging in the real estate business” to delete provision including within said definition engaging in the business, for a fee, in connection with any contract whereby any person undertakes to promote the sale of real estate through listing such property in certain publications; P.A. 88-329 inserted new Subdivs. (4) to (8), inclusive, defining “real estate appraiser”, “residential appraiser”, “engaging in the real estate appraisal business” and “engaging in the residential appraisal business”, renumbering existing Subdivs. as necessary, effective July 1, 1989; P.A. 89-347 amended the definitions of “real estate broker”, “real estate salesman” and “engaging in the real estate business” by deleting the references to offering or attempting negotiate loans; P.A. 90-332 added new Subdiv. (5), defining “real estate appraiser trainee”, inserted new Subdivs. (10) to (14), inclusive, defining “appraisal foundation”, “certification”, “federally related transaction”, “general certification” and “residential certification”, and renumbered the remaining Subdivs. as necessary; P.A. 91-229 amended the definition of “real estate appraiser” to include licensure and certification, deleted the reference to “residential appraiser” under “real estate appraiser trainee”, deleted the definition of “residential appraiser” and added the definitions of “licensed appraiser”, “certified appraiser”, “FDIC” and “FIRREA”, deleted references to “engaging in the residential appraisal business”, “certification”, “general certification” and “residential certification”, made technical corrections and relettered the remaining Subsecs.; P.A. 93-354 deleted former Subdivs. (4) to (8), inclusive, and (10) to (13), inclusive, which had defined terms applicable to real estate appraisal, effective in accordance with Sec. 20-528; P.A. 94-36 changed effective date of P.A. 93-354 but without affecting this section; P.A. 95-79 redefined “real estate broker” and “person” to include a limited liability company, effective May 31, 1995; P.A. 96-200 substituted “salesperson” for “salesman” in Subdiv. (2); P.A. 98-10 defined “commission” and made technical changes; P.A. 99-229 amended definition of “real estate broker” or “broker” to substitute “any person, partnership, association, limited liability company or corporation which acts for another person or entity ...” for “any person, partnership, association, limited liability company or corporation which, for another ...”, amended definition of “real estate salesperson” or “salesperson” to reference actions for another as a designated seller agent or designated buyer agent, and added definitions of “designated agency”, “designated buyer agent” and “designated seller agent”; P.A. 00-160 added new Subdiv. (9) defining “commercial real estate transaction”; P.A. 21-167 redesignated former Subdivs. (1), (2), (3), (4), (5), (6), (7), (8) and (9) as Subdivs. (8), (9), (6), (7), (2), (3), (4), (5) and (1), respectively, and added Subdivs. (10) and (11) defining “team” and “team name”, respectively, effective January 1, 2022; P.A. 23-84 added new Subdivs. (1) to (4) defining “advertising”, “affiliated”, “associate broker” and “business entity”, respectively, redesignated Subdivs. (1) and (2) as Subdivs. (5) and (6), divided redesignated Subdiv. (5) into Subparas. (A) and (B), added new Subdivs. (7) to (9) defining “confidential information”, “custodial broker” and “department”, respectively, redesignated Subdiv. (3) as Subdiv. (10), added new Subdiv. (11) defining “designated broker”, amended definitions of “designated buyer agent” and “designated seller agent” in redesignated Subdivs. (12) and (13), respectively, to substitute “real estate licensee” for “broker or salesperson”, added Subdiv. (14) defining “development owner”, amended redesignated Subdiv. (15) to substitute “engage in the real estate business” for “engaging in the real estate business” and substantially rewrite said definition, added Subdivs. (16) to (21) defining “incapacity”, “influence residential real estate appraisals”, “leasing agent”, “multiunit development”, “negotiate” and “nonmaterial fact concerning real property”, respectively, redesignated Subdiv. (7) defining “person” as Subdiv. (22) and substituted “business entity” for “partnership, association, limited liability company or corporation” in said definition, added Subdivs. (23) and (24) defining “promotional note” and “prospective party”, respectively, redesignated Subdiv. (8) as Subdiv. (25) and substantially amended same to redefine “real estate broker” and “broker”, added Subdiv. (26) defining “real estate licensee”, redesignated Subdiv. (9) as Subdiv. (27) and substantially amended same to redefine “real estate salesperson” and “salesperson”, added Subdivs. (28) to (31) defining “real estate transaction”, “residential real property”, “school” and “supervising licensee”, redesignated Subdiv. (10) defining “team” as Subdiv. (32) and substantially amended said definition, redesignated Subdiv. (11) as Subdiv. (33), and made technical and conforming changes throughout, effective April 1, 2024. Constitutionality discussed. 142 C. 699. When Probate Court directs a private sale, Superior Court can only determine whether its discretion has been reasonably and legally exercised. 143 C. 716. Those portions of section classifying one listing property in publication for promotion of sales or referral of information to licensed real estate brokers as engaged in real estate business, held unconstitutional. 144 C. 659. Cited. 169 C. 445; 184 C. 228; 218 C. 396. Cited. 3 CA 675; 34 CA 250. Cited. 35 CS 24. Rights and duties of broker employed to secure loan depend on same principles as when employed to find purchaser of property. 5 Conn. Cir. Ct. 415.