Advisory Opinion No. 1996-5
Application Of
The Ban On Contingent Fee Lobbying
To A Real Estate Transaction
Contact with an executive branch or quasi-public agency for
the purpose of promoting or negotiating the sale of real property to the State
of Distinguishable from the negotiation or promotion of the
sale of real property is any action which may be a necessary precedent or
precondition to the sale, such as obtaining regulatory authorization, effecting
hazardous waste clean-up or securing necessary state permits. Such activities would not be considered the
exempt business activities of a salesperson within the meaning of Conn. Gen.
Stat. §1-91(k)(2) and Regulations of Connecticut State Agencies §§1-92-42b and
1-92-42c(b). A real estate salesperson
or broker communicating with an executive branch or quasi-public agency
regarding such matters would risk losing the exemption of §1-91(k)(2) which, as
noted, extends only to persons who limit their activities to sales. However, any such action may otherwise be
exempt from the definition of lobbying, for example, as the practice of law
within the meaning of Conn. Gen. Stat. §1-91(k)(3), if undertaken by an attorney,
or as a business activity exempted pursuant to Conn. Gen. Stat. §1-91(k)(4) and
Regulations of Connecticut State Agencies §1-92-42a(e). See State Ethics Commission Advisory Opinion
No. 95-12, supra and State Ethics Commission Advisory Opinion No. 95-6, 57 Conn.
L.J. No. 4, p. 1E ( Finally, the Commission has been asked to address the
question of how the above limitations and exemptions apply to a real estate
broker or salesperson whose business associates engage in non-exempt lobbying
activities. For the salesperson
exemption of §1-91(k)(2) to apply under such circumstances, the real estate
broker or salesperson must refrain from participating in any non-exempt
activities and may not accept any share of the compensation generated by his
associates non-exempt activities. The
salespersons lobbyist-associates, of course, are prohibited from accepting any
share of the real estate commission generated by the sale of the property. By order of the Commission,
Chairperson