Bulletin: CT2017003

Date:
June 27, 2017
To:
All Connecticut Issuing Offices
RE:
LEGISLATIVE UPDATE - 2017 Legislative Session

Dear Associates:

The following real estate related bills were passed and await signature by the Governor. 

1. House Bill No. 7046 - An Act Concerning The Closure Of Certain Building Permits. HB-7046 

This bill should be helpful in sales where building permits were not closed out and create problems when buyers do not want to inherit the compliance issues that follow. If an open permit is not closed out within 9 years it will be deemed closed when the amended statute becomes effective on October 1, 2017. Note, however, that this does not necessarily alleviate concerns regarding the “safety of life or property exception in C.G.S §29-265(a) relating to lack of a C.O., situations where improvements were made with no permits, nor concerns of hazard insurance companies that could arise for failure to have had a final inspection of an improvement that might become the source of an insurance claim.  

2. House Bill No. 7198 - An Act Concerning Court Operations, Victim Services, Fraudulent Filings and Transfers Of An Interest In Real Property To A Trust.  HB-7198

Section 50 of this bill repealed and replaced §47-36bb of the Statutes to elaborate upon the transfer of an interest in real property to a trust rather than to the trustee(s) of a trust. The net effect of the prior section, as expanded upon, validates such a transfer notwithstanding Standard of Title 7.1.

3. House Bill No. 7305 - An Act Concerning Revisions To Various Provisions Of The General Statutes.  HB-7305

In response to the case of Neighborhood Association, Inc. v. Limberger, 321 Conn. 29 (2016), Section 47-202 (31) of the Common Interest Ownership Act was amended to preclude from the definition of “rule” an association’s standard foreclosure policy, thus avoiding the jurisdictional issue described in that case. How this affects previously concluded condominium foreclosure cases has yet to be determined. 

4. Senate Bill 884 - An Act Adopting The Connecticut Uniform Recognition Of Substitute Decision-Making Documents Act and Revising The Connecticut Uniform Power Of Attorney Act.  SB-0884

The revision to the Uniform Power of Attorney Act provides that forms that are “substantially” in the form of the statutory short form or long form may be used and that a validly executed power of attorney may be used to convey land.

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References

Bulletins Replaced:
None
Related Bulletins:
None
Underwriting Manual:
None
Exceptions Manual:
None
Forms:
None