A buyer's agent in Connecticut, Rachel, is representing a client purchasing a mixed-use building. During due diligence, Rachel discovers that the property is subject to the Connecticut Transfer Act and that the seller has filed Form III, establishing a post-transfer remediation schedule. The buyer is eager to close quickly. Which of the following best describes the legal and professional implications for Rachel and her client under Connecticut law?

Correct Answer

A) Form III allows the transfer to proceed, but the buyer assumes responsibility for completing the environmental remediation per the approved schedule, and Rachel must ensure her client understands this ongoing obligation before closing

Form III under the Connecticut Transfer Act (CGS §§ 22a-134 through 22a-134e) is used when an establishment is being transferred and environmental investigation or remediation has not been completed prior to closing. By filing Form III, the parties agree to a post-transfer remediation schedule approved by DEEP. Critically, the transferee (buyer) typically assumes responsibility for completing the remediation after taking title. Rachel, as a buyer's agent with fiduciary duties, must ensure her client fully understands this ongoing environmental obligation — including potential costs and timelines — before proceeding to close. Failure to advise the client of this material obligation could expose Rachel to liability under CUTPA and professional discipline by CREC.