Bulletin: CT2024001

Dear Associates:

With the end of the 2024 legislative session in Connecticut we are providing this update relative to a newly enacted law that impacts real estate and the effect of certain listing agreements filed with the land records. Further, we are highlighting three recent cases that may be of interest for the real estate practitioner and policy issuing agent in Connecticut.

Legislation

The 2024 legislative session in Connecticut has concluded with the passage of one new law relating to real estate and title law, specifically listing agreements which are filed in the land records. Public Act 24-101, effective as of July 1, 2024, prohibits so-called “Unfair Real Estate Listing Agreements” from being filed in the land records and further provides a mechanism for invalidating those previously filed from the land records.

The law was in response to those types of agreements filed by MV Realty, but the application of the law applies to any listing agreement that falls within the law’s definition of Unfair Real Estate Listing Agreement, not just those filed by MV Realty. Stewart Title Guaranty Company (STGC) has previously issued several bulletins related to the filing of listing agreements, which guidance remains in effect. To review the previously issued bulletins, please refer below. To read the new law in its entirety, please follow the link above.

Recent cases of interest to the Connecticut real estate practitioner and policy issuing agent:

Mona S. Mulvey, Trustee v. Stefan Palo, et al, 226 Conn. App. 495
This case involved a request for declaratory judgment of adverse possession, which was ultimately denied because of plaintiff’s failure to provide clear and convincing evidence of the precise boundary lines of her property. The decision provides a good discussion of the elements necessary to successfully establish title by adverse possession.

Kenigsberg v. Sky Top Partners, LLC et , al, D.Conn. 3:2023cv00939 (2023)
This case received national attention and involved a fraudster who allegedly lived out of the country and successfully impersonated a seller and sold real estate to a third-party buyer without the true owner’s knowledge. The real owner lived out of state and the property was a valuable piece of vacant land. A party claiming to be the owner retained a local realtor to list the land and the realtor referred the closing to a local attorney. The attorney never met the seller, nor did the realtor. The buyer began construction of a home on the property after which the real owner was made aware of the situation. After lawsuits were filed among all the affected parties in state and federal courts, the matter ultimately resolved through a stipulated judgment. The case provides a reminder that land sale frauds are occurring in many towns, and methods to verify identity of seller must be taken (such as sending a letter to the address where the tax bills are mailed). STGC has issued numerous bulletins to assist you in identifying potential fraudulent transactions. Please review those, which can be accessed by the links below.

Jeffrey Stewart et al  v. Old Republic Nat’l Title Ins. Co., 218 Conn. App. 226
This case discusses the principles of determining coverage under a title insurance policy when a claim is filed. It also addresses several policy exclusions contained within the pre-printed jacket of a title insurance policy, such as matters caused or permitted by the insured and matters arising after the date of policy.

If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.

For on-line viewing of this and other bulletins, please log onto www.vuwriter.com.

Sample form of confirmation/thank you letter