2024 Changes to Real Estate Licensing Regulations

Regulations implementing the April 1, 2024, revisions to the real estate licensing and enforcement statutes will become effective. Below, please find a summary of some of the most important changes that will impact Real Estate Licensees.

Disclosures to Unrepresented Parties

Upon the request of a party who is not represented by a real estate licensee a buyer’s or seller’s agents must disclose who is represented by the brokerage firm and its agents.

Form 2 the Real Estate Agency Disclosure Notice Given to Unrepresented Persons has been removed from the regulations. In place of the previously required form, a new form has been posted to the department’s website and requires disclosure of the following:

  1. The name of the real estate licensee
  2. The property address
  3. The name of the buyer
  4. The name of the seller
  5. A clear statement of who is and is not represented by the real estate licensee
Dual and Designated Agency Disclosure

Forms related to Dual/Designated Agency have been removed from the regulations. The updated regulations keep in place required disclosures, and in place of the forms previously published in regulation the Department has posted template forms on its website.

When a real estate licensee represents both the prospective seller and buyer, both parties must agree to dual agency using the consent form mandated in section 20-325g of the Connecticut General Statutes.

As previously allowed, when a broker is acting as a dual agent, they may appoint designated seller’s and buyer’s agents for a particular transaction. Once appointed, the broker must provide written notice to both prospective parties and obtain written consent from both prospective parties. The written notice must include the following:

  • A description of the roles and responsibilities of appointing brokers and designated agents
  • An acknowledgment from each prospective party that they consent to the appointment of designated agents
  • Names of the appointed designated agents for each prospective party
  • Name of appointing broker or authorized agent of such appointing broker

A combined dual and designated agency form may be utilized.

Advertising

The advertising guidelines have been expanded and updated for advances in media and technology. There are now separate sections for supervised licensees (salesperson or associate broker) and supervising licensees (broker).

New sections for print, social media, and internet sites, broken out by license type, replace the old sections for licensee-controlled internet sites and internet electronic communications.

A new section prohibits using words that imply an individual licensee is a business entity.

The department has posted additional information regarding these changes on its website.

Schools and Courses

The updated regulations consolidate the requirements for pre-licensing and continuing education schools and courses. These regulations can now be found in sections 20-328-10b through 20-328-18a of the Regulations of Connecticut State Agencies.

There is a new section on the Mandatory Continuing Education Course, which maintains the requirement for Commission approval. The new section keeps the requirement to not hold courses on the premises of a real estate office, but only for pre-licensing courses.

The section requires all schools to electronically retain complete records of student attendance, grades, and course competition for a period of three years.  Following the three-year period, the burden of proof of completion shifts to the licensee.

The new regulations also eliminate the requirement that the Commission approve course advertisements and course locations.

Housing Discrimination

The specific references to the prohibited practices of “blockbusting” and “steering” have been removed. The regulations now reference the statutes on discrimination in housing, section 46a-64c of the Connecticut General Statutes. These are maintained by the Commission on Human Rights and Opportunities (CHRO).

Document Retention

Statutory changes effective April 1, 2024 require brokers to keep documents electronically.  The new regulations require that brokers retain those documents for seven years. Additionally, every person required to retain documents and every person in charge of those documents shall, upon request, make the documents immediately available for review by the Department.

Residential Property Condition Report

The residential property condition report formerly listed in section 20-327b-1 of the Regulations of Connecticut State Agencies has been removed. The statutory requirements of 20-327b regarding the residential condition report remain in effect, and template forms can be found on the department’s website.