2.2 Connecticut Property Disclosures
Key Takeaways
- Connecticut's Uniform Property Condition Disclosure Act (CGS 20-327b) requires sellers of 1-4 residential units to deliver a Residential Property Condition Disclosure Report before the buyer signs a binder, contract, or option
- If the seller fails to deliver the report, the buyer receives a $500 credit at closing under CGS 20-327c (NOT $300)
- Sellers disclose only what they actually KNOW; they have no duty to inspect or investigate
- Federal law requires a separate Lead-Based Paint disclosure plus the EPA pamphlet and a 10-day inspection opportunity for pre-1978 housing
- Stigma items (deaths, hauntings, occupant HIV/AIDS, nearby registered offenders) are not required disclosures, but licensees must answer honestly if asked
The Residential Property Condition Disclosure Report
Connecticut's Uniform Property Condition Disclosure Act (CGS Secs. 20-327b and 20-327c) requires the seller of residential property of four dwelling units or fewer — including single-family homes, condominiums, and cooperatives — to give the buyer a completed Residential Property Condition Disclosure Report on the Department of Consumer Protection (DCP) form. The seller signs and dates it; the buyer acknowledges receipt.
What the Report Covers
The DCP form groups dozens of yes/no questions into condition categories:
| Category | Examples on the form |
|---|---|
| Structural | Foundation, roof, walls, floors, basement seepage |
| Mechanical systems | Heating, cooling, plumbing, electrical, water heater |
| Water/sewage | Private well, water quality, public/septic sewage, flooding history |
| Environmental | Lead paint, radon, asbestos, underground storage tanks |
| Pest | Termites and other wood-destroying insects, prior treatment |
| Legal/encumbrances | Easements, encroachments, boundary disputes, association fees |
The Seller's Actual Obligation
| Requirement | Connecticut rule |
|---|---|
| Disclose KNOWN conditions | Yes — based on the seller's actual knowledge |
| Investigate or hire inspectors | No duty to investigate |
| Deliver before buyer commits | Before the buyer signs a binder, contract, option, or lease-purchase |
| Answer truthfully | Yes — knowingly false answers create fraud liability |
Key point: A seller who genuinely does not know answers "unknown," but cannot lie. The report does not transform an "as-is" sale into a warranty; it discloses what the seller knows.
Failure to Deliver: the $500 Credit
This is the single most-tested number in the chapter. Under CGS 20-327c, if the seller fails to furnish the report before the buyer signs, the seller must credit the buyer $500 at closing. Note: many older study outlines incorrectly say $300 — the statutory figure is $500.
Worked example: A seller never hands over the disclosure report. The deal still closes, but the buyer takes a $500 credit. Crucially, paying the $500 does NOT release the seller — a buyer who later discovers a concealed known defect can still sue for fraud, damages, and attorney's fees.
Who Is Exempt from the Report
The Uniform Property Condition Disclosure Act applies only to ordinary residential resales of 1-4 units. Certain transfers are exempt and require no report:
| Exempt transfer | Reason |
|---|---|
| Court-ordered transfers (probate, foreclosure) | Seller lacks personal knowledge of the property |
| Transfers by a fiduciary administering an estate or trust | No occupancy knowledge |
| Transfers between co-owners or to a spouse/relative (divorce, gift) | Parties already know the property |
| New construction never occupied | Covered instead by builder warranties |
| Transfers of property of more than four units | Outside the Act's residential scope |
Trap: A bank selling a foreclosed (REO) home is generally exempt because it never lived in the property and lacks the personal knowledge the report demands.
Layered Federal and State Disclosures
Lead-Based Paint (Federal — Title X / 24 CFR Part 35)
For target housing built before 1978, federal law (not Connecticut law) requires the seller and listing agent to:
| Requirement | Detail |
|---|---|
| Disclose | Any KNOWN lead-based paint and hazards, plus available records |
| Pamphlet | Provide the EPA booklet "Protect Your Family From Lead in Your Home" |
| Form | Signed Lead-Based Paint Disclosure / Lead Warning Statement |
| Inspection window | Buyer gets a 10-day opportunity to test (the buyer may waive it) |
| Recordkeeping | Agent retains records for 3 years |
Trap: Lead-paint duties attach to the building's AGE (pre-1978), not its sale price or whether Connecticut requires a separate disclosure. The agent shares liability if the warning is omitted.
Connecticut-Specific Add-Ons
- Radon: Disclose known radon test results and any mitigation system; CT is largely a radon zone, so this is heavily emphasized.
- Underground storage tanks: Disclose known tanks, removals, or contamination.
- Wetlands / flood zone: Disclose known wetlands, flood-zone status, and prior flooding.
- Foundation crumbling (pyrrhotite): A separate DCP foundation-condition report applies in affected northeastern CT towns where defective concrete aggregate caused crumbling foundations.
What Connecticut Does NOT Require Sellers to Disclose
| Not a required disclosure | Why |
|---|---|
| Deaths on the property | Not deemed a material condition of the real estate |
| Alleged hauntings / psychological stigma | Stigmatized-property doctrine |
| Occupant's HIV/AIDS status | Protected; disclosure would violate fair housing |
| Nearby registered sex offenders | Public record via the state registry — no affirmative duty |
Caveat: "Not required" does not mean "may lie." If a buyer directly asks, the licensee must answer honestly or decline to answer; an affirmative misrepresentation is actionable.
The Licensee's Role
The agent is not a home inspector and must not make condition guarantees. Best practice: deliver the seller's report unaltered, disclose any material defect the agent personally knows, and always recommend an independent professional home inspection so the buyer relies on experts rather than the agent's opinion.
The agent must never coach the seller to hide a defect or alter the seller's answers. Doing so converts a seller-knowledge problem into the agent's own misrepresentation, which is a basis for Real Estate Commission discipline (suspension or revocation under CGS 20-320) plus civil liability.
Quick Reference: Disclosure Source-of-Law Map
| Disclosure | Source of law | Key threshold |
|---|---|---|
| Property condition report | CT — CGS 20-327b/20-327c | 1-4 units; $500 credit if omitted |
| Lead-based paint | Federal — Title X | Homes built before 1978; 10-day test window |
| Radon results / mitigation | CT property report | Only if known |
| Underground storage tank | CT property report | Only if known |
| Crumbling concrete foundation | CT — separate DCP foundation report | Affected northeastern CT towns |
| Stigma (death, haunting, HIV) | None required | Answer honestly only if asked |
Exam tip: When a question asks which disclosure is FEDERAL, the answer is almost always lead-based paint for pre-1978 housing. Everything else in this chapter — the condition report, radon, tanks, wetlands — is Connecticut state law.
What is the consequence when a Connecticut seller fails to furnish the Residential Property Condition Disclosure Report before the buyer signs?
Which statement about a Connecticut seller's disclosure obligation is correct?
For a home built in 1965, which disclosure obligation is triggered by FEDERAL law rather than Connecticut law?