Bill > HB05572

This bill establishes a comprehensive regulatory framework for real estate wholesalers in Connecticut, requiring them to obtain a license from the Department of Consumer Protection for most wholesale transactions. Under the bill, a real estate wholesaler is defined as a person who facilitates the sale of property to a third party without taking possession, and who must obtain a license (with an exception for those conducting only one wholesale contract per calendar year). The licensing process involves submitting an application with a $285 fee, and licenses are valid for one year with renewal options. The bill mandates that real estate wholesale contracts must include specific provisions, such as the wholesaler's name and license number, a ten-day attorney review period for sellers, and a prominent warning statement about consulting professionals. Contracts are limited to a maximum of 70 days before closing, with the option for written extensions, and any violations of the licensing or contractual requirements will be considered an unfair trade practice. The bill aims to protect property sellers by increasing transparency and providing safeguards in wholesale real estate transactions, with the new regulations set to take effect on October 1, 2025.