Connecticut General Statutes/Title 49/Chapter 846/Section 49-8

CGS § 49-8. Release of satisfied or partially satisfied mortgage or ineffective attachment, lis pendens or lien. Damages.

(a)(1) The mortgagee or a person authorized by law to release the mortgage shall execute and deliver, or cause to be delivered, to the town clerk of the town in which the real estate is situated or, if so requested in writing by the mortgagor or a designated representative of the mortgagor, to the mortgagor or the designated representative of the mortgagor, a release to the extent of the satisfaction tendered before or against receipt of the release: (A) Upon the satisfaction of the mortgage; (B) upon a bona fide offer to satisfy the mortgage in accordance with the terms of the mortgage deed upon the execution of a release; (C) when the parties in interest have agreed in writing to a partial release of the mortgage where that part of the property securing the partially satisfied mortgage is sufficiently definite and certain; or (D) when the mortgagor has made a bona fide offer in accordance with the terms of the mortgage deed for such partial satisfaction on the execution of such partial release.

(2) If a release is not delivered to the mortgagor or a designated representative of the mortgagor in accordance with subdivision (1) of this subsection, the mortgagee or a person authorized by law to release the mortgage shall deliver a copy of such release to the mortgagor concurrently with the delivery of such release to the town clerk.

(b) The plaintiff or the plaintiff's attorney shall execute and deliver a release when an attachment has become of no effect pursuant to section 52-322 or section 52-324 or when a lis pendens or other lien has become of no effect pursuant to section 52-326.

(c) The mortgagee or plaintiff or the plaintiff's attorney, as the case may be, shall execute and deliver a release within sixty days from the date a written request for a release of such encumbrance (1) was sent to such mortgagee, plaintiff or plaintiff's attorney at the person's last-known address by registered or certified mail, postage prepaid, return receipt requested, or (2) was received by such mortgagee, plaintiff or plaintiff's attorney from a private messenger or courier service or through any means of communication, including electronic communication, reasonably calculated to give the person the written request or a copy of it. The mortgagee or plaintiff shall be liable for damages to any person aggrieved at the rate of two hundred dollars for each week after the expiration of such sixty days up to a maximum of five thousand dollars or in an amount equal to the loss sustained by such aggrieved person as a result of the failure of the mortgagee or plaintiff or the plaintiff's attorney to execute and deliver a release, whichever is greater, plus costs and reasonable attorney's fees.

Short History

(1949 Rev., S. 7112; 1963, P.A. 590, S. 1; 1969, P.A. 595, S. 1; P.A. 79-10; 79-602, S. 68; P.A. 89-347, S. 18; P.A. 93-147; P.A. 95-102, S. 1; P.A. 03-19, S. 111; P.A. 23-45, S. 2.)

Long History

History: 1963 act applied provisions with respect to bona fide offers to satisfy mortgage wholly or partially upon execution of release or partial release and with respect to agreements for partial release; 1969 act applied provisions when an attachment has become of no effect pursuant to Sec. 52-322 or 52-324 and when lis pendens or other lien has become of no effect, required that request be sent to last-known address by registered or certified mail, postage prepaid and return receipt requested, and raised fine from $5 to $50 per week, imposing ceiling of $1,000; P.A. 79-10 raised fine to $100 per week, raised dollar amount of ceiling to $5,000 and provided for maximum payment of amount equal to loss sustained because of failure to execute and deliver release, if that amount is greater; P.A. 79-602 divided section into Subsecs. and restated provisions but made no substantive changes; P.A. 89-347 amended Subsec. (c) by increasing liability from $100 to $200 per week for failure to provide a release and removed the $5,000 ceiling; P.A. 93-147 amended Subsec. (c) to allow written request for release to be conveyed, carried or delivered by a private messenger or courier; P.A. 95-102 revised wording of Subsec. (c), changed time for release from 30 to 60 days and imposed maximum fine of $5,000 plus costs and reasonable attorney's fees; P.A. 03-19 made technical changes in Subsecs. (a) and (c), effective May 12, 2003; P.A. 23-45 redesignated existing Subsec. (a) as Subsec. (a)(1) and added provision therein re delivery or causing delivery of release to town clerk or, if requested, to mortgagor or representative, redesignated existing Subsec. (a)(1) to (a)(4) as Subsec. (a)(1)(A) to (a)(1)(D) and added new Subsec. (a)(2) re delivery of copy of release to mortgagor concurrently with delivery of release to town clerk if release not delivered to mortgagor or representative.

Citations

Tender of expense held excused. 76 C. 705. No tender or offer of release need be made until debt is paid. 93 C. 495. When mortgagor pays, he is entitled to a release but not to an assignment. 95 C. 586. Cited. 122 C. 27; 162 C. 31. Section provided new, affirmative remedy and contains no express or implied intention to abrogate or supersede common-law remedy; section provides additional, but not exclusive, remedy. 172 C. 152. Cited. 196 C. 172; 223 C. 419. A breach of section's provisions is tortious in nature and not contractual, and therefore the 3-year statute of limitations set forth in Sec. 52-577 is applicable. 284 C. 193.

Cited. 18 CA 313. Action founded on section sounds in tort. 94 CA 593. Trial court erred in granting plaintiff damages and attorney's fees where, to the extent a stipulated agreement could be deemed to trigger running of 60-day compliance period, the notices of lis pendens were released before the expiration of 60 days from the date of the agreement; remedy of statutory damages is available only after the lis pendens has been judicially determined to be invalid or the lis pendens has become inoperative because the underlying controversy no longer exists. 162 CA 548.

Section must be construed as expressly limiting the mortgagor to total damages of $1,000 in suit for damages for refusal to give a partial release of mortgage. 33 CS 41. Cited. 41 CS 130.

Subsec. (c):

Damages provision set forth in Subsec. is not akin to a liquidated damages clause but instead more analogous to a penalty provision. 284 C. 193.

Statutory aggrievement and not actual damages are required to establish statutory standing under Subsec. and plaintiff has no duty to mitigate statutory damages to which it is entitled under Subsec.; Subsec. does not violate Eighth or Fourteenth amendments because excessive fine prohibition doesn't apply to civil cases involving non-government fines and statute itself provides notice. 206 CA 316.

Maximum amount under statute cannot be multiplied where more than one aggrieved party. 49 CS 43.

PreviousCGS § 49-7f. Mortgage brokers and lenders prohibited from referring buyers of real property to a real estate broker, salesperson or attorney for a fee or commission. Suspension or revocation of licenses.NextCGS § 49-8a. Release of mortgage. Affidavit. Recording of affidavit with town clerk. Penalty for recording false information. Payment accepted for mortgage loan.