CT SB00347

Prohibits financial institutions from including provisions in real estate sale contracts that offer buyers the option to use the institution's preferred service providers for essential closing services, including title insurance, escrow, and attorney services.

Defines "financial institution" to include banks, out-of-state banks, institutional lenders, and their subsidiaries or affiliates that acquire property through foreclosure, foreclosure by sale, deed-in-lieu of foreclosure, or other Department of Banking-licensed lenders.

Applies to contracts between buyers and financial institutions or entities acting on their behalf, including corporations, limited liability corporations, and asset management companies.

Voids any contract provision violating this prohibition as against the public policy of Connecticut, effective October 1, 2019.

Creates a new section in Connecticut general statutes addressing these contract restrictions.