Connecticut

Connecticut at a Glance

1. Mechanic's Lien Rules

Plain English

A Connecticut mechanic's lien is perfected by lodging a certificate with the town clerk within 90 days after the claimant stops work, then serving a copy on the owner within 30 days after lodging. Subcontractors and suppliers who don't have a direct contract with the owner must also give the owner and the original contractor a written notice of intent within the same 90 days. The lien reaches back to when work started, so it beats mortgages and liens that came later. It is gone after 1 year unless the claimant starts a foreclosure and records a lis pendens. An owner can get the lien dissolved by having a Superior Court judge substitute a bond (CGS § 49-37). Under the statute, what goes on the land records is a certified copy of the court's order, and recording it dissolves the lien.

Filed Memo Notes (kept unchanged)

The de-identified lien-bonding notes from the forwarded "Lien Issue" thread (Sept 8-9, 2026) stay exactly as filed on the Notion page: the situation, the bonding contacts, the key point that bonding does not remove the lien and a release is needed, Joe Powell's open question, and the "Three things to check when a lien is bonded" list.

Reconciliation note (Oct 2026 research). CGS § 49-37 provides that the lien is dissolved when a certified copy of the court's order substituting the bond is recorded in the town clerk's office. That is a court-ordered dissolution, not a voluntary release. So the memo's point should be read as "the bond by itself does not clear the land records; something must be recorded." The memo text is unchanged.

Key Rules

Priority (CGS § 49-33(b), (d)). A lien takes precedence over any encumbrance originating after the start of the services or materials. If a mortgage is recorded while construction is under way, liens that started before it come first.

Certificate (CGS § 49-34). Lodged with the town clerk within 90 days after the claimant ceases work; served on the owner within 30 days after lodging.

Notice of intent (CGS § 49-35). Anyone other than the original contractor (or a sub with a written contract the owner assented to) must give written notice to the owner and the original contractor after starting and within 90 days after stopping. An original contractor is entitled to that notice only if it lodged an affidavit with the town clerk within 15 days after starting.

Bond substitution (CGS § 49-37). On the owner's application, a Superior Court judge orders the lien dissolved and a bond substituted. The lien is dissolved when a certified copy of the order is recorded in the town clerk's office (the statute sets a 10-day recording window). The bond is void unless suit on it is brought within 1 year from recording of the lien certificate.

Duration (CGS § 49-39). The lien lapses 1 year after perfection unless a foreclosure action is commenced and a lis pendens recorded within that time (or within 60 days after a § 49-35a disposition, if later).

Practice Points

1. Bonded lien? Look for the recorded certified § 49-37 order, not just a bond. Until CT underwriting answers Joe Powell's question, treat a bonded lien with nothing recorded as open (see the filed memo).
2. Check the 1-year clock. A lien more than a year old with no recorded lis pendens has lapsed under § 49-39, but get CT counsel's sign-off before ignoring it.
3. Construction loans: get lien waivers and an owner's affidavit covering the last 90 days, and check for § 49-35 notices.

Citations

• CGS § 49-33 (lien; priority): https://www.cga.ct.gov/current/pub/chap_847.htm#sec_49-33
• CGS § 49-34 (certificate; 90 days; service): https://www.cga.ct.gov/current/pub/chap_847.htm#sec_49-34
• CGS § 49-35 (notice of intent): https://www.cga.ct.gov/current/pub/chap_847.htm#sec_49-35
• CGS § 49-37 (bond substitution; dissolution): https://www.cga.ct.gov/current/pub/chap_847.htm#sec_49-37
• CGS § 49-39 (1-year lapse; lis pendens): https://www.cga.ct.gov/current/pub/chap_847.htm#sec_49-39

2. Execution and Notarization Requirements for Recording

Plain English

Connecticut is one of the few states that still requires two witnesses on a deed. A conveyance must be in writing, signed, acknowledged, attested by two witnesses, and must include the grantee's mailing address. Deeds are recorded in the town clerk's office of the town where the land is (Connecticut has no county recording). An unrecorded deed is good only against the grantor and the grantor's heirs. The conveyance tax is paid at recording: a state portion (0.75% for most homes, stepping up to 1.25% and 2.25% for the parts of a price above $800,000 and $2.5 million) plus a municipal 0.25%. Connecticut allows remote notarization (CGS § 3-95b, added by P.A. 23-28), but the signer must mail the signed original back to the notary to finish it.

Key Rules

• Formalities (CGS § 47-5). Written, subscribed, acknowledged, attested by two witnesses, grantee's mailing address.
• Recording (CGS § 47-10). Not effective against anyone but the grantor and heirs unless recorded in the town where the land lies.
• Conveyance tax (CGS § 12-494). Due when consideration is $2,000 or more. State 0.75% generally; for a residence priced at $800,000 or more, 1.25% of the portion from $800,000 to $2.5M and 2.25% above $2.5M; 1.25% for non-residential property other than unimproved land (unimproved land stays at 0.75%); municipal 0.25%, and a targeted investment community or a town with designated manufacturing plants may add up to 0.25% more (§ 12-494(c)). Paid by the person conveying, at recording (§ 12-495).
• Remote notarization (CGS § 3-95b, P.A. 23-28). Real-time audio-video; the signer mails or delivers the signed original to the notary, who completes it with signature and seal (§ 3-95b(d)).

Practice Points

1. Count the witnesses. Two witnesses plus an acknowledgment on every deed; a missing witness is a classic Connecticut defect (check the validating acts with counsel).
2. Record in the right town, not a county.
3. Compute both conveyance taxes and watch the $800,000 and $2.5 million steps.

Citations

• CGS § 47-5 (formalities; two witnesses): https://www.cga.ct.gov/current/pub/chap_821.htm#sec_47-5
• CGS § 47-10 (recording): https://www.cga.ct.gov/current/pub/chap_821.htm#sec_47-10
• CGS § 12-494 (conveyance tax): https://www.cga.ct.gov/current/pub/chap_223.htm#sec_12-494
• CGS § 3-95b (remote notarization): https://www.cga.ct.gov/current/pub/chap_033.htm#sec_3-95b

3. Securing Future Advances

Plain English

Connecticut uses the open-end mortgage. If the deed is headed "Open-End Mortgage", contains provisions allowing advances, and states the full amount of the loan, advances made later are secured and keep priority from the date the mortgage was recorded, ahead of later liens. Commercial future-advance loans, consumer revolving loans, and letters of credit get extra flexibility (no note needed for each advance, and the line doesn't have to be fully drawn). The borrower can record a notice terminating or capping future optional advances, with a copy sent to the lender by registered or certified mail. Separately, ordinary mortgages also secure taxes, insurance and similar items the lender pays, and limited repair advances.

Key Rules

• Protective advances (CGS § 49-2(a)). Taxes, insurance, association assessments and prior-lien payments paid by the lender become part of the debt.
• Open-end mortgage (CGS § 49-2(c)). Heading "Open-End Mortgage"; provisions permitting advances; full loan amount stated; priority from recording over later rights and liens.
• Borrower's termination notice (CGS § 49-2(c)(7)). Borrower may record a notice ending or limiting optional advances, with a copy to the lender by registered or certified mail.
• Guarantor open-end mortgages (CGS § 49-4b). Securing a guaranty of an open-end loan.

Practice Points

1. Check the heading. No "Open-End Mortgage" heading, no § 49-2(c) priority for later advances.
2. Read the stated amount; that is the ceiling.
3. HELOC payoffs: get a recorded termination notice or a freeze letter.

Citations

• CGS § 49-2 (open-end mortgage): https://www.cga.ct.gov/current/pub/chap_846.htm#sec_49-2
• CGS § 49-4b (guaranty open-end mortgage): https://www.cga.ct.gov/current/pub/chap_846.htm#sec_49-4b

4. Subdivision Statutes and Regulations

Plain English

No land can be subdivided in Connecticut until the local planning commission approves the plan. Selling lots without approval carries a fine of up to $500 per lot. Once approved, the plan must be filed or recorded with the town clerk within 90 days after the appeal period ends (extendable twice by 90 days), or the approval becomes void. By statute, a "subdivision" is a division of a tract into three or more parts or lots, made after the commission adopted subdivision regulations, for sale or building development (municipal, conservation and agricultural development excluded); it includes resubdivision (CGS § 8-18).

Key Rules

• Approval required (CGS § 8-25(a)). No subdivision without commission approval; fine up to $500 per lot sold or offered.
• Filing deadline (CGS § 8-25(a)). Filed or recorded with the town clerk within 90 days after the appeal period, or the plan is null and void (two 90-day extensions possible).
• Definition (CGS § 8-18). Division into three or more parts or lots after subdivision regulations were adopted, for sale or building development, excluding municipal, conservation or agricultural purposes; includes resubdivision.

Practice Points

1. New lot? Confirm the approved plan was filed on time.
2. Read plan notes for easements and conservation restrictions.
3. Lot-line changes: ask whether a resubdivision approval was needed.

Citations

• CGS § 8-18 (definitions): https://www.cga.ct.gov/current/pub/chap_126.htm#sec_8-18
• CGS § 8-25 (subdivision approval; filing): https://www.cga.ct.gov/current/pub/chap_126.htm#sec_8-25
• CGS chapter 126 (municipal planning commissions): https://www.cga.ct.gov/current/pub/chap_126.htm

5. Title Premium Rates

Plain English

Connecticut treats title insurance as a noncompetitive market. Insurers must file all rates and supporting information with the Insurance Commissioner, and filings sit for a 30-day waiting period before they take effect (the Commissioner can extend it 30 days). A filing is deemed to meet the law unless disapproved in that period. Connecticut is also known as an attorney state for closings and title agency work.

Key Rules

• Noncompetitive market (CGS § 38a-688(b)). Title insurance is deemed noncompetitive; rates and supplementary information filed.
• Waiting period (CGS § 38a-688(b)). 30 days before effect, extendable 30 days; deemed compliant unless disapproved.

Practice Points

1. Quote only from the company's filed Connecticut rates.
2. No unfiled discounts.
3. Confirm the agent's licensing and attorney status before appointment.

Citations

• CGS § 38a-688 (rate filing; noncompetitive markets): https://www.cga.ct.gov/current/pub/chap_701.htm#sec_38a-688

6. Recording Taxes & Fees on Deeds and Mortgages

Plain English

Connecticut's real estate conveyance tax is paid by the seller: a state tax that rises with price on homes (0.75%, 1.25%, then 2.25% above $2.5 million) plus a municipal tax of 0.25% (up to 0.5% in some towns). Selling a controlling interest in an entity that owns Connecticut property triggers a separate controlling-interest transfer tax. Connecticut has no mortgage tax.

Key Rules

(a) Deed transfer, conveyance or excise tax

• State tax (§ 12-494): residential 0.75% on the first $800,000, 1.25% on the portion from $800,000 to $2.5 million, and 2.25% above $2.5 million; non-residential 1.25%, except unimproved land (including farm, forest and open space land), which is taxed at 0.75%.
• Municipal tax. 0.25%; a targeted investment community or a town with designated manufacturing plants may add up to another 0.25% (§ 12-494(c)).
• Who pays. The grantor (seller): payable by the person conveying the property (§ 12-495).
• Controlling interest. Transfer of a controlling interest in an entity owning Connecticut real property is taxed at 1.11% of the property's value (Chapter 228b, § 12-638b), payable by the seller or transferor; the statute sets one rate regardless of property type.
• Return. Form OP-236 is filed with the town clerk (or through myCTREC in participating towns).

(b) Mortgage, indebtedness or intangible tax

• None found. No Connecticut statute imposing a mortgage, indebtedness or intangible tax on recording a mortgage was found, and a mortgage securing a debt is exempt from the conveyance tax, so future advances, credit lines, refinances and modifications carry only recording fees.

(c) Other recording taxes and fees

• Town clerk recording fees (§ 7-34a): $10 for the first page and $5 for each additional page, plus a $10 fee (§ 7-34a(d)) and a $40 fee (§ 7-34a(e)) on each document recorded, so a one-page document costs $60. Add $5 if a deed lacks the grantee's mailing address.

Practice Points

1. Worked example. A $1,000,000 home: state tax $6,000 + $2,500 = $8,500; municipal $2,500.
2. Entity deals: budget the 1.11% controlling-interest tax.

Citations

• CGS § 12-494 (conveyance tax): https://www.cga.ct.gov/current/pub/chap_223.htm#sec_12-494
• CGS § 12-495 (payment by the person conveying): https://www.cga.ct.gov/current/pub/chap_223.htm#sec_12-495
• CGS § 12-638b (controlling-interest transfer tax): https://www.cga.ct.gov/current/pub/chap_228b.htm#sec_12-638b
• CGS § 7-34a (town clerk fees): https://www.cga.ct.gov/current/pub/chap_092.htm#sec_7-34a
• Conn. DRS, Real Estate Conveyance Tax Information (Form OP-236): https://portal.ct.gov/drs/individuals/individual-income-tax-portal/real-estate-conveyance-taxes/tax-information
• CGA, Chapter 223: https://www.cga.ct.gov/current/pub/chap_223.htm