Key Takeaways
- Connecticut is a title theory state where the lender holds legal title during the mortgage
- Foreclosure in Connecticut is judicial (court supervised)
- Connecticut uses both warranty deeds and quitclaim deeds
- Property taxes are assessed by individual towns and due in two installments
- The Connecticut conveyance tax applies to most property transfers
Connecticut Property Law
Connecticut has specific property laws that affect real estate transactions.
Title Theory State
Connecticut is a title theory state:
| Concept | Description |
|---|---|
| Legal title | Held by lender during mortgage |
| Equitable title | Held by borrower |
| Transfer | Legal title transfers to borrower when mortgage is paid |
Comparison: In lien theory states, the borrower holds legal title and the lender only has a lien.
Foreclosure Process
Connecticut uses judicial foreclosure (court supervised):
| Step | Description |
|---|---|
| Default | Borrower misses payments |
| Lawsuit | Lender files foreclosure complaint |
| Court process | Judge oversees proceedings |
| Redemption | Borrower may have right to redeem |
| Sale | Court-ordered sale |
Right of Redemption
| Type | Timeframe |
|---|---|
| Strict foreclosure | Law day set by court |
| Foreclosure by sale | Until court confirmation |
Types of Deeds
Connecticut uses various deed types:
Warranty Deed
| Feature | Description |
|---|---|
| Guarantees | Title is good and marketable |
| Covenants | Seller warrants against all defects |
| Protection | Highest protection for buyer |
Quitclaim Deed
| Feature | Description |
|---|---|
| Guarantees | None—transfers whatever interest grantor has |
| Use | Family transfers, clearing title issues |
| Protection | No warranties provided |
Special Warranty Deed
| Feature | Description |
|---|---|
| Guarantees | Only against defects during grantor's ownership |
| Use | Estate sales, commercial transactions |
| Protection | Limited protection |
Property Taxes
Connecticut property taxes are administered at the town level:
Assessment
| Item | Details |
|---|---|
| Assessor | Town assessor determines value |
| Assessment ratio | 70% of fair market value |
| Revaluation | Required every 5 years (or 10 with annual adjustments) |
Payment
| Feature | Details |
|---|---|
| Due dates | Two installments (July 1 and January 1 typically) |
| Lien priority | Property tax liens are superior |
| Penalties | Interest on late payments |
Connecticut Conveyance Tax
Connecticut imposes a real estate conveyance tax on most property transfers:
Tax Rates
| Rate | Applies To |
|---|---|
| 0.75% (seller) | First $800,000 of sales price |
| 1.25% (seller) | Amount over $800,000 |
| 0.25% (buyer) | Entire sales price (if applicable municipality) |
Exemptions
Some transfers are exempt:
- Transfers to spouse or between parent and child
- Transfers due to divorce
- Certain government and non-profit transfers
Calculation Example: On a $500,000 sale, the seller's conveyance tax would be: $500,000 x 0.75% = $3,750
Recording Requirements
Who Records
| Party | Responsibility |
|---|---|
| Buyer's attorney | Typically records the deed |
| Lender | Records the mortgage |
Recording Process
| Step | Details |
|---|---|
| Submit | Deed presented to town clerk |
| Pay fee | Recording and transfer taxes paid |
| Indexing | Document indexed by grantor/grantee |
| Priority | Recording establishes priority |
Key Principle: First to record generally has priority (race-notice statute).
What type of state is Connecticut regarding mortgage title?
What is the Connecticut conveyance tax rate for sellers on the first $800,000 of a sale?
What type of foreclosure does Connecticut use?