(a) If a landlord or tenant in a commercial real estate transaction enters into an agreement pursuant to subsection (b) or (c) of section 20-325a for the payment of compensation, or the promise of payment, to a real estate broker in consideration for brokerage services rendered in connection with the consummation of a written lease, then notwithstanding any provision of law under which such compensation may otherwise be considered the personal obligation of the original landlord or tenant specifically named in the written lease, the agreement shall constitute a binding contractual obligation of such landlord or tenant, as the case may be, and the landlord's or tenant's grantees, successors and assigns. Upon any sale, transfer, assignment or other disposition, including, but not limited to, any such disposition by reason of the enforcement of a mortgage, lien, deed to secure debt or other security instrument of a landlord's interest in real property or upon any sale, assignment, transfer or other disposition of a tenant's leasehold interest, the succeeding party shall be bound for all obligations under such agreement accruing after the sale, transfer, assignment or other disposition with the same effect as if such succeeding party had expressly assumed the landlord's or tenant's obligations relating to the written agreement if: (1) The real estate broker has complied with the provisions of subsections (b) to (d), inclusive, of this section; (2) the succeeding party assumes the benefits of the tenancy; and (3) the agreement has not been waived in writing by the real estate broker.
(b) A real estate broker shall be entitled to the protections afforded by this section only upon the broker's recording a notice of commission rights in the land records in the office of the town clerk in the town in which the real property or leasehold interest is located not later than sixty days after the execution of the lease, the tenant's occupancy of the leased premises, or the rent commencement date specified in the lease, whichever is later. The notice of commission rights shall (1) be filed before conveyance of the real property, (2) be signed by the real estate broker or by a person expressly authorized to sign on behalf of the broker, and (3) be in substantially the following form:
NOTICE OF COMMISSION RIGHTS
The undersigned licensed Connecticut real estate broker does hereby publish this NOTICE OF COMMISSION RIGHTS to establish that the lease referenced below was procured by a real estate broker pursuant to a written brokerage commission agreement providing for the payment or promise of payment of compensation for brokerage services.
Owner: ....
Landlord: ....
Tenant: ....
Lease date: ....
Lease term: ....
Project or building name (if any): ....
Real estate broker name ....
Address ....
Telephone number ....
Real estate license number ....
(c) Not later than thirty days after the real estate broker receives final payment of commissions due under the written brokerage commission agreement, the real estate broker shall provide the owner, tenant or mortgagee a statement, in a form suitable for recording on the land records, that indicates that the broker's commission rights are terminated.
(d) Notwithstanding any provision of this section, nothing in this section shall be construed to create a lien on the real property that is the subject of the lease.
(P.A. 01-88; P.A. 17-169, S. 2.)
History: P.A. 17-169 amended Subsec. (b) by replacing reference to 30 days with reference to 60 days re recording notice of commission rights, added “or the rent commencement date specified in the lease,” and made technical changes, effective January 1, 2018.
Structure Connecticut General Statutes
Chapter 392 - Real Estate Brokers and Salespersons
Section 20-311. - Definitions.
Section 20-311a. - Real Estate Commission.
Section 20-311b. - Duties of commission.
Section 20-311c. - Executive director. Expenses of commission members. Records.
Section 20-311d. - Bond for chairperson.
Section 20-311e. - Deposit of fees.
Section 20-311f. - Arbitration of disputes between brokers or salespersons.
Section 20-312. - License required. Imposition of fine. Teams.
Section 20-312a. - Liability of brokers for salespersons affiliated as independent contractors.
Section 20-313. - Application for license.
Section 20-314. - License qualifications. Examinations. Renewals. Fees. Reinstatement. Hearings.
Section 20-314b. - Validity of license.
Section 20-316. - Grounds for refusal of license.
Section 20-318. - Certificate.
Section 20-319. - Renewal. Continuing education requirements. Regulations.
Section 20-320. - Suspension or revocation of licenses. Fines.
Section 20-320b. - Prohibition against influencing real estate appraisals. Violation, penalty.
Section 20-321. - Notice and hearing.
Section 20-323. - Revocation of license upon conviction of crime.
Section 20-324. - Misrepresentation; penalty.
Section 20-324a. - Real Estate Guaranty Fund.
Section 20-324b. - Fee payable to fund.
Section 20-324c. - Level of guaranty fund. Credits to guaranty fund and General Fund.
Section 20-324d. - Limitation of actions.
Section 20-324f. - Penalty for false or untrue claim.
Section 20-324g. - Procedure for commission.
Section 20-324h. - Payment from guaranty fund.
Section 20-324i. - Regulations.
Section 20-324j. - Appeal of commission decision, order or regulation.
Section 20-325. - Engaging in business without license.
Section 20-325c. - Real estate broker or salesperson acting as mortgage broker.
Section 20-325d. - Disclosure of representation. Regulations.
Section 20-325e. - Hearings re real property claims for liens. Foreclosures. Judicial intervention.
Section 20-325g. - Dual agency consent agreements. Conclusive presumption of informed consent.
Section 20-325h. - Prohibitions on use or disclosure of confidential information.
Section 20-325i. - Designated buyer agents and seller agents.
Section 20-325j. - Regulations re appointment of designated buyer or seller agent.
Section 20-325k. - Commercial real estate transactions. Notice of commission rights.
Section 20-325m. - Real estate brokers to retain certain real estate transaction records.
Section 20-326. - Report to Governor.
Section 20-327a. - Periodic publication of information and material.
Section 20-327b. - Residential condition reports. Exemptions. Templates.
Section 20-327e. - Seller's representations construed to extend to his actual knowledge only.
Section 20-327h. - Notice re housing discrimination and fair housing laws.
Section 20-328. - Regulations.
Section 20-329. - Exceptions concerning the licensure of brokers and salespersons.
Section 20-329a. - Advertising and sale in this state of property in another state: Definitions.
Section 20-329b. - Excepted activities. Filing fees.
Section 20-329bb. - Exemptions.
Section 20-329c. - Secretary as agent for service of process; bond; license required.
Section 20-329cc. - “Nonmaterial fact concerning real property” defined.
Section 20-329e. - Investigation by department.
Section 20-329f. - Issuance of license. Fees.
Section 20-329ff. - Legal rights retained for physical deficiencies.
Section 20-329g. - Reference to commission or department prohibited.
Section 20-329gg. - Exemptions. Federal transactions.
Section 20-329h. - Rights of purchasers.
Section 20-329j. - Commission members may not participate.
Section 20-329k. - Nonliability of advertising media.
Section 20-329m. - Regulations.
Section 20-329n. - Deposits of purchasers and lessees to be held in escrow.
Section 20-329p. - License and endorsement requirements.
Section 20-329q. - Statement to purchaser.
Section 20-329r. - Appraisal of real property.
Section 20-329s. - Filing and approval of materials to be used by dealer.
Section 20-329t. - Annual financial report.
Section 20-329u. - Desist order for violation. Appeal.
Section 20-329v. - Permit to sell real property security required. Application.
Section 20-329w. - Issuance or denial of permit. Limitation of commission's authority. Hearing.
Section 20-329x. - Prohibited acts. Penalty.
Section 20-329y. - Civil action for injury from transaction.