What laws affect a National Agency’s operations in Connecticut?*

Connecticut law restricts those people who can be title agents to commissioners of the Superior Court and individuals who held a valid title insurance license prior to June 12, 1984. By statute, a title agent is a person who solicits title business, determines the insurability of risks, issues title policies or collects title premium. The law further prohibits title agents from sharing title premium with non-agents. Clearly a national title agency cannot act as a title agent in Connecticut.

The practice of law as it relates to a real estate closing is defined as:
“Giving advise or counsel to any person, or representing or purporting to represent the interest of any person, in a transaction in which an interest in property is transferred where the advice or counsel, or the representation or purported representation, involves (a) the preparation, evaluation, or interpretation of documents related to such transaction or to implement such transaction or (b) the evaluation or interpretation of procedures to implement such transaction, where such transaction, documents, or procedures affect the legal rights, obligation, liabilities or interest of such person…”

Federal law prevents a state from defining the practice of law as to place an undue burden on interstate commerce. Finally, Connecticut law allows a title insurer to issue closing protection letters to its agents.

*This is information does not constitute legal advice. For regulatory compliance advice you should contact an attorney licensed in Connecticut.