AN ACT CONCERNING THE DEPARTMENT OF CONSUMER PROTECTION'S RECOMMENDATIONS REGARDING VARIOUS GUARANTY FUNDS.

HB 5224 updates Connecticut's Real Estate Guaranty Fund rules to better protect consumers defrauded by real estate licensees. It caps compensation at $25,000 per transaction (not per person) for losses due to embezzlement, fraud, or misrepresentation by agents or their unlicensed employees. The bill also sets a $500,000 maximum fund balance, requires licensees who trigger fund payments to repay the amount plus 10% interest, and limits claims to two years after a final court or arbitration decision. These changes directly affect real estate professionals who commit misconduct and consumers seeking redress for financial harm.