Connecticut Writes Two Sentences Into Your Buyer Agency Agreement

Somewhere in the first hour of working with an agent in Connecticut, a buyer gets handed a representation agreement and asked to sign it. Most people skim it. The parts worth reading closely are the parts the agent did not write.

Connecticut's real estate licensure statutes put specific language into that document and specific steps in front of it. Two of those are sentences the General Statutes supply word for word. Here is what they say, where they come from, and what they actually do.

Before the agreement: what has to happen at the first meeting

Section 20-325d of the General Statutes was amended by Public Act 23-84 and the change took effect April 1, 2024. Subsection (b) now reads that "[n]ot later than the first personal meeting, a real estate licensee shall: (1) Disclose in writing to a prospective party (A) the types of agency relationships available to the prospective party, and (B) that the prospective party should not share confidential information with the real estate licensee until such prospective party has entered into a written representation agreement with such real estate licensee".

Read subparagraph (B) again. The state requires the agent to hand you a written warning about talking to the agent.

The same subsection adds a second requirement for residential transactions: the licensee must "provide to a prospective party information on fair housing discrimination, including a description of federal and state fair housing laws, protected classes, where to obtain additional information and available resources." The statute allows all of it to be "delivered electronically to the prospective party," which is why it often arrives as an emailed PDF rather than a clipboard at the door.

Subsection (a) covers the other direction. A licensee who represents somebody "shall, upon request, disclose in writing the identity of the real estate licensee's client to any party to the transaction who is not represented by another real estate licensee." If you walk into an open house without an agent and want to know in writing who the person at the door works for, the statute says you may ask.

The first sentence the statute writes for you

Section 20-325b is one paragraph long. It says that each written agreement which fixes the compensation to be paid to a real estate broker for the sale, lease or purchase of real property shall contain the following statement in not less than ten point boldface type, or in a manner which otherwise stands out significantly from the text, immediately preceding any provision of the agreement relating to broker compensation:

"NOTICE: THE AMOUNT OR RATE OF REAL ESTATE BROKER COMPENSATION IS NOT FIXED BY LAW. IT IS SET BY EACH BROKER INDIVIDUALLY AND MAY BE NEGOTIABLE BETWEEN YOU AND THE BROKER."

Three things follow from the way that is written.

• It applies to purchase agreements, not only listings. The section names "the sale, lease or purchase of real property."
• It has to sit immediately before the compensation clause, not in a footer or an addendum somewhere else.
• It has to be visually louder than the surrounding text. Ten point boldface is the floor the statute names.

If you are looking at a buyer agency agreement and you cannot find that sentence sitting right on top of the fee, that is a reasonable thing to ask about before you sign.

The second sentence, and it surprises people

Section 20-325a governs when a licensee can bring an action to recover a commission. Subsection (b) sets out seven requirements for the contract or authorization the services were rendered under. The sixth is a quoted sentence:

"THE REAL ESTATE BROKER MAY BE ENTITLED TO CERTAIN LIEN RIGHTS PURSUANT TO SECTION 20-325a OF THE CONNECTICUT GENERAL STATUTES"

The requirement is not limited to listings. Subsection (b)(6) applies "if such contract or authorization pertains to any real property." A buyer representation agreement pertains to real property.

Most buyers read that line, if they read it at all, as boilerplate about the seller's side. It is not. Subsection (e) grants the lien to a broker who performed "upon terms provided for in a written contract or agreement between the broker and the owner or buyer for whom such acts were done or services rendered."

The other six requirements in the same subsection

Alongside the lien sentence, subsection (b) says the contract or authorization shall:

• Be in writing. The subdivision says only that. It does not define what counts as a writing, and it is the one item subsection (d)'s substantial compliance relief does not reach. The General Assembly prints an appellate annotation under this section holding that email correspondence which identified the obligation to compensate, named both the broker and the person for whom services were rendered, and was signed by that person, complied with it.
• Contain the names and addresses of the broker performing the services and the name of the person for whom they were rendered.
• Show the date the contract was entered into or the authorization given.
• Contain the conditions of the contract or authorization.
• Be signed by the broker or the broker's authorized agent.
• Be signed by the person for whom the services were rendered, or by an agent authorized in the manner Connecticut requires for conveyances.

What that subsection actually controls is narrower than it looks. It conditions whether the broker may commence an action to recover compensation. It is not a rule that a defective agreement disappears. And subsection (d) softens part of it, but only part. By its own terms it reaches "subdivisions (2) to (7), inclusive, of subsection (b)" and says nothing in them prevents recovery "if it would be inequitable to deny such recovery" and the licensee "has substantially complied" with them. The writing requirement in subdivision (1) is not in that range. Read the whole section, or have your attorney read it, before drawing a conclusion about any particular document.

What a buyer side broker's lien actually is

This is the part almost nobody explains to buyers, so here is the sequence the statute lays out.

• It cannot attach early. Subsection (f) says the lien does not attach until the broker is entitled to compensation "without any contingencies, other than closing or transfer of title," under the terms of the written listing or buyer representation contract.
• On the buyer side it attaches later still. Subsection (i): if the broker's written contract for payment is with a prospective buyer, the lien attaches "only after the prospective buyer accepts the conveyance or lease of the real property and the claim for lien is recorded by the broker with the town clerk." The claim must be filed no later than thirty days after the conveyance.
• Notice, with one alternative. Subsection (r) says no broker is entitled to claim the lien unless one of two things happens. The first is written notice to the owner and to the prospective buyer or tenant, given after the broker is entitled to compensation without contingencies other than closing or transfer of title, and not later than three days prior to the later of the conveyance date set in the sales contract or the actual conveyance date. The second branch dispenses with notice entirely where the broker "is unable to give written notice" under the first branch "because the identity of the prospective buyer or tenant cannot be ascertained by the broker after due diligence and reasonable effort."
• It expires. Subsection (k)(2): foreclosure must be commenced within one year after recording the claim, or the lien is extinguished, and no subsequent claim for lien may be given for the same claim.
• You can force the clock. Subsection (n): on the owner's written demand requiring suit to be commenced, a suit must be commenced within forty five days or the claim for lien is extinguished.
• It has to be released. Subsection (m): if a condition occurs that would preclude the broker from receiving compensation, the broker shall provide a written release or satisfaction within thirty days of demand.
• It does not have to stop a closing. Subsection (p) sets up an escrow from the proceeds in the amount of the agreed compensation, on the establishment of which the broker "shall immediately release the claim for lien."

None of that is a reason to refuse to sign anything. It is a reason to know what the sentence in your agreement is pointing at.

If the same brokerage has both sides

Section 20-325g supplies an entire form, the Dual Agency Consent Agreement, and says there is "a conclusive presumption that a person has given informed consent to a dual agency relationship" if the person executes a written consent in that form before executing any contract for the purchase, sale or lease of real estate.

Two lines in the form do a lot of work. The brokerage firm may not disclose "[t]o the buyer that the seller (landlord) will accept less than the asking or listed price, unless otherwise instructed to do so in writing by the seller (landlord)," and may not disclose "to the seller (landlord) that the buyer (tenant) can or will pay a price greater than the price submitted in a written offer to the seller (landlord), unless otherwise instructed to do so in writing by the buyer (tenant)."

The form also says both parties "are advised to seek competent legal and tax advice with regard to this transaction, and with regard to all documents executed in connection with this transaction." That advice is in the statute itself, which is worth noticing.

Confidential information, before and after you sign

Section 20-325h says no real estate licensee shall reveal confidential information concerning a prospective party or a person the licensee represented, use it to that person's disadvantage, or use it for the licensee's own advantage or a third party's. Public Act 23-84 added the references to a prospective party, so the prohibition now reaches people who have not signed anything.

The three exceptions the section names are narrow: as required by legal process, as necessary to defend the licensee against allegations of wrongful or negligent conduct, and as necessary to prevent the commission of a crime.

Put 20-325d(b)(1)(B) next to 20-325h and the design is visible. The state tells the agent to warn you not to volunteer confidential information before there is a written agreement, and separately tells the agent not to misuse it either way.

What the statute does not say

It does not set the fee. Section 20-325b says so out loud.

It does not set the length of the agreement, the geography it covers, or whether it is exclusive. Those are negotiated terms, and they are the ones worth spending your attention on.

And in its own text, chapter 392 does not say a buyer must sign a representation agreement before being shown a house. What it does regulate, among other things, is the licensee's disclosures, what a written contract has to contain for the broker to bring an action for compensation, dual agency consent, designated buyer and seller agents under section 20-325i, a flat ban on broker subagency under section 20-325f, confidential information, and the conduct section 20-320 lets the state discipline a licensee for. Separate industry and brokerage rules may require a written agreement before a showing. If you are told one is required, it is fair to ask which rule that is coming from, and to read the document either way.

What to ask before you sign

• How long does this run, and how do I end it? The statute does not fix a term. Your agreement does.
• What geography and what property types does it cover? An agreement written for one town behaves very differently from one written for a region.
• Is it exclusive, and what happens if I find the house myself?
• Where is the compensation clause, and is the boldface notice immediately above it?
• What is the holdover or protection period after it ends, and which properties does it apply to?
• Does it renew itself? Section 20-320(a)(6) makes it a disciplinable act for a licensee to enter into "an exclusive listing contract or buyer agency contract which contains a fixed termination date if such contract also provides for an automatic continuation of the period of such contract beyond such date." A buyer agency agreement that rolls over on its own is the thing that subdivision names.
• Is dual agency contemplated, and if so, has the 20-325g consent form been explained?

Ask a lawyer to read it if any of it is unclear. In Connecticut you will have an attorney at the closing table anyway, because a non attorney cannot legally close your purchase. Bringing that person in at the front costs you very little.

Where this sits for a buyer around Candlewood

Buying here usually means comparing towns rather than streets, and the terms in a representation agreement decide whether that comparison is even allowed under the document you signed. If you are weighing New Milford against New Fairfield, or a full time house against a summer cottage that may not finance as a second home, an agreement scoped to one town is the wrong shape.

The same goes for the number you can borrow. The conforming ceiling here moves by nearly 145,000 dollars at the New Milford and Kent town line, which is the subject of a separate piece on the 2026 loan limits, and it is the sort of thing worth settling before you narrow your search rather than after.

On the selling side the equivalent question is which of your costs are actually fixed. The short answer is almost none of them, which I went through in only one of your selling costs is set by law. And if you want the running total of what a lake house costs once you own it, that is here.

Everything on this site is indexed by question in the full map of these guides.

Common questions

Does Connecticut require me to sign a buyer agency agreement? Chapter 392 does not say that in its own text. It requires disclosures from the licensee not later than the first personal meeting and sets out what a written contract must contain for a broker to bring an action for compensation. Brokerage or industry rules may separately require one before a showing.

What is the boldface sentence in my buyer agreement? Section 20-325b requires this notice immediately before the compensation provision: "NOTICE: THE AMOUNT OR RATE OF REAL ESTATE BROKER COMPENSATION IS NOT FIXED BY LAW. IT IS SET BY EACH BROKER INDIVIDUALLY AND MAY BE NEGOTIABLE BETWEEN YOU AND THE BROKER."

Can a buyer's broker put a lien on the house I bought? Section 20-325a(e) grants a lien to a broker who performed under a written contract with an owner or a buyer. Under subsection (i) it attaches only after the buyer accepts the conveyance and the claim is recorded, and the claim must be filed within thirty days of the conveyance. Subsection (r) sets out a written notice requirement before the claim, along with a second branch that applies where the broker cannot ascertain the buyer's identity after due diligence and reasonable effort.

Is the commission negotiable in Connecticut? The statute requires the agreement to say the amount or rate is not fixed by law, is set by each broker individually, and may be negotiable between you and the broker.

When did the first meeting disclosure rule change? Public Act 23-84 amended section 20-325d and the relevant change took effect April 1, 2024.

Should I tell an agent my maximum price at the first showing? The statute has the agent tell you in writing not to share confidential information before there is a written representation agreement. Section 20-325h separately bars a licensee from revealing or misusing confidential information about a prospective party.

If you want a plain reading of a specific agreement before you sign it, or you want to talk through how to scope one across the five Candlewood towns, reach me through ConnorCTHomes.com.

Connor Kostyra, Licensed Real Estate Salesperson, CT Lic. RES.0836348.
Connor CT Homes is a marketing brand. Real estate services are provided through RE/MAX Rise, 1297 Main Street, Watertown, CT 06795.
This article is general information and is not legal advice. I am a real estate salesperson, not an attorney. Statutory language quoted here is taken from chapter 392 of the Connecticut General Statutes, sections 20-320, 20-325a, 20-325b, 20-325d, 20-325f, 20-325g, 20-325h and 20-325i, as published by the Connecticut General Assembly and read on September 5, 2026. Statutes are amended; confirm the current text and how it applies to your own agreement with a Connecticut attorney.