In the residential sector, Connecticut landlords must a dense thicket of required disclosures ranging from bed bug notifications to fire sprinkler registries. The commercial sector is vastly different. Generally, the commercial real estate market operates on the doctrine of caveat emptor ("let the buyer/lessee beware").

Because commercial tenants are viewed as sophisticated business entities, Connecticut state law mandates very few specific consumer-level disclosures for commercial property leases. The heavy lifting of due diligence falls almost entirely on the commercial tenant before they sign the lease. However, there is one massive exception: Environmental Liability.

. This act requires the disclosure of environmental conditions when transferring "Establishments."

An "Establishment" generally includes any real property where:

• More than 100 kilograms of hazardous waste was generated in any one month since November 1980.
• Hazardous waste was recycled, stored, or treated on-site.
• A dry cleaning, furniture stripping, or auto body repair business operated since May 1, 1967.

While entering into a standard lease without a purchase option does not technically trigger a "transfer" under the Act requiring formal DEEP (Department of Energy and Environmental Protection) filings, commercial landlords are still effectively required to disclose this status.

• A commercial tenant must conduct a Phase I Environmental Site Assessment (ESA) during their due diligence.
• If the landlord conceals known historical contamination, they face massive liability under both common law fraud and federal CERCLA (Superfund) laws.

guide for incorporating these protective clauses.

Official Law Citation: The rules and regulations outlined on this page are strictly configured under general commercial contract law.

Agency Disclosure (If Using Brokers)

If the commercial property is being leased with the assistance of licensed real estate agents or brokers, regulations by the Connecticut Real Estate Commission require the agents to disclose whom they represent.

• A broker representing the landlord must disclose this relationship to the prospective tenant early in the transaction.
• Dual agency (holding a fiduciary duty to both the landlord and tenant) must be explicitly disclosed in writing and consented to by both parties.

How Landager Helps

Landager continually tracks lease terms, required compliance items, and strict escrow accounting records - making it easy to fundamentally stay heavily compliant with Connecticut regulations.

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