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Connecticut Just Changed the Short Sale Rules

September 28, 2009

NegotiationsConnecticut just changed the short sale rules. States Attorney Richard Blumenthal has been very busy yet again. As of October 1, 2009, anyone other than an attorney who is negotiating a short sale on behalf of a home owner, who is expecting to collect a commission or fee as a result of the negotiation MUST be licensed by the state of CT, to the license fee tune of $1600, as well as obtaining a surety bond. (This includes loan modification assistance.) I am assuming that because we as realtors expect to get a commission when the sale happens, we are included in the list of people who will need to be licensed.

This is the first I had heard of this, considering that October 1 is just around the corner this could become very problematic for those Realtors who have short sale listings and are doing the negotiations themselves. I had already partnered with a firm to assist any clients I have in a short sale position, they are in the process of obtaining their license from the state.

To read the bill, click here.  (read pg. 32, section 29).

UPDATE:  The wording of this bill is so vague it is hard to tell if indeed Realtors are included in this group. I intend to send an email to the attorney for the Connecticut Association of Realtors to see what he thinks. What worries me is that even if we are not included now, the bill has left open the possibility to include Realtors at a later date should Mr. Blumenthal decide he wants us to be licensed to negotiate short sales with lenders on behalf of our clients. If anyone has better information, please feel free to post it here!

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