Bulletin: CT2023001

Dear Associates:

Legislation

The 2023 legislative session of Connecticut has ended with the following bills passed that are related to real estate transactions:

1) Senate Bill 1040, P.A. 23-38 – Remote Notarial Acts - This bill allows a notary public to notarize a document for a person who is not in the notary’s physical presence under certain circumstances but most importantly prohibits the use of remote notarization in real estate closings, including the acknowledgement of any instrument pertaining to (a) Connecticut real property or a power of attorney made outside the state before an attorney licensed to practice in Connecticut and (b) the execution of any Connecticut real estate conveyance, mortgage, release of mortgage or lien. The bill also prohibits, as part of a real estate closing, the use of remote notarization to acknowledge any instrument located outside of Connecticut in any other state, the District of Columbia or U.S. territory which is verified in compliance with that other jurisdiction’s law and authenticated in compliance with Connecticut law. The effective date is October 1, 2023.

2) House Bill 6580, P.A. 22-3 – Smoke and Carbon Monoxide Detector Requirements - This bill makes several changes in a smoke and carbon monoxide detector disclosure law for residential buildings. Under current law, a seller of a 1-2 family residence must give a buyer an affidavit certifying certain conditions about the detectors or credit the buyer with $250 at closing. The bill eliminates the credit option, extends the affidavit requirement to units in residential common interest communities, changes the content required in the affidavit and when it must be given. The State Fire Marshal’s Office is required to create a model form to be used for the affidavit and a guide of outlined smoke detector requirements. The bill also adds to exemptions from the law transfers acquired by foreclosure. The effective date is October 1, 2023.

3) House Bill 6892 – P.A. 23-23 – Municipal Blight Ordinances - This bill expands state and local authority to regulate blight to include commercial properties and increases the maximum daily penalties from $100 to $1000 for repeat offenders in a 12-month period.

4) Senate Bill 1072 – P.A. 23-18 – Revisions to Common Interest Ownership Act - This bill requires common interest community associations to keep confidential any unredacted records that identify how a unit owner voted. It also increases the fee that unit owners must pay their association for the required resale certificate when selling their unit to $185. The effective date is October 1, 2023.

5) House Bill 6631 – P.A. 22-26 – Act Concerning the Common Interest Ownership Act - Existing law allows common interest community owner associations to bring an action to foreclose a lien on a unit for unpaid assessments. The association must give written notice to holders of previously recorded first or second security interests at least 60 days before bringing the foreclosure action. This bill specifies that this 60-day notice is not an unauthorized communication with a third party under state laws or regulations governing creditors’ collection practices. The effective date is October 1, 2023.

6) House Bill 6691 – P.A. 23-78 – Credit Card Access to Home Equity Lines of Credit - This bill changes current law by allowing borrowers to access proceeds from home equity loans by certain credit cards or other similar payments by their lenders. Current law allows priority for mortgages securing home equity lines of credit so long as loan proceeds are not accessed by credit card. This bill limits prohibition on such payment methods to ones that allow access to loan proceeds by single advancements under $1000. The effective date is October 1, 2023.

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