Bulletin: CT2022002

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Bulletin: CT2022002

Bulletin Document
Date: September 21, 2022
To: All Connecticut Issuing Offices
RE: UNDERWRITING - Smoke and Carbon Monoxide Detectors: New Disclosure Requirements Regarding Smoke and Carbon Monoxide Effective October 1, 2022

Dear Associates:

Connecticut Gen. Stat. § 29-453 requires, among other things, that the seller of a residential, one to two family building provide to the buyer an affidavit certifying to the presence of smoke and carbon monoxide detectors in the building along with other related certifications. Per the statute, if the seller does not provide the foregoing affidavit to a buyer the seller must provide to the buyer a closing credit in the amount of $250.00. 

Changes to Affidavit, Effective October 1, 2022: 

As a result of Public Act 22-75, in addition to the items presently required by Connecticut Gen. Stat. § 29-453 to be set forth in the affidavit, the following must also be included: 

  • The detectors comply with the Fire Safety Code, the State Fire Prevention Code, and the State Building Code. 
  • The equipment must be powered by the household’s electrical service, except that it may be battery powered if the building permit for new occupancy was issued prior to October 1, 1976. 
  • If the building permit for new occupancy was issued on or after October 16, 1989, the equipment must be interconnected so that the activation of one alarm on the premises activates all of the alarms. 
  • If the building permit for new occupancy was issued on or after May 1, 1999, equipment located in all sleeping areas.

If there are instances where an agent advises a client seller not to deliver an affidavit to a buyer, as mentioned above, the seller has the option to provide to the buyer a closing credit in the amount of $250.00 in lieu of an affidavit.

Changes to Exemptions (Applicable to ALL Residential, One to Two Family Buildings), Effective October 1, 2022

Effective October 1, 2022, the affidavit requirement applies to transfers of ALL residential, one to two family buildings regardless of when the underlying building permit was issued, unless one of the exemptions set forth as a bullet point below applies. Previously, only residential, one to two family buildings with building permits for new occupancy issued before October 1, 2005, were subject to the affidavit requirements.

The following exemptions will continue to be available for the following transfers, regardless of when the building permit was issued:

  • any transfer from one or more co-owners solely to one or more of the other co-owners
  • transfers made to the spouse, mother, father, brother, sister, child, grandparent, or grandchild of the transferor where no consideration is paid
  • transfers pursuant to an order of the court
  • transfers by the federal government or any political subdivision thereof
  • transfers by deed in lieu of foreclosure
  • any transfer of title incident to the refinancing of an existing debt secured by a mortgage
  • transfers by mortgage deed or other instrument to secure a debt where the transferor's title to the real property being transferred is subject to a preexisting debt secured by a mortgage
  • transfers made by executors, administrators, trustees, or conservators.

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.

THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER  AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.


References

Bulletins Replaced:
  • None
Related Bulletins:
  • None
Underwriting Manual:
  • None
Exceptions Manual:
  • None
Forms:
  • None