California Legislature—2013–14 Regular Session

Assembly BillNo. 2039


Introduced by Assembly Member Muratsuchi

February 20, 2014


An act to amend Section 2079.23 of the Civil Code, relating to real property.

LEGISLATIVE COUNSEL’S DIGEST

AB 2039, as introduced, Muratsuchi. Real property sales: auction companies: liability.

Existing law requires listing and selling agents, as defined, to provide sellers and buyers in a residential real property transaction with a disclosure form, as prescribed, containing general information on real estate agency relationships. Existing law authorizes a contract between a principal and agent, in this context, to be modified to change the agency relationship at any time before the performance of the act which is the object of the agency with the written consent of the parties.

This bill would require an auction company that is retained to control aspects of a residential real property transaction, as a condition of receiving a lender’s approval of the transaction, to defend the listing agent for any liability alleged to result from the auction company’s actions and to indemnify the agent for liability resulting from the auction company’s actions.

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Section 2079.23 of the Civil Code is amended
2to read:

3

2079.23.  

begin insert(a)end insertbegin insertend insert A contract between the principal and agent may
4be modified or altered to change the agency relationship at any
5time before the performance of the act which is the object of the
6agency with the written consent of the parties to the agency
7relationship.

begin insert

8(b) If an auction company is retained to control aspects of a
9transaction of real property subject to this part, including
10validating the sales price, as a condition of receiving a lender’s
11approval of the transaction, the auction company shall defend the
12listing agent for any liability alleged to result from the auction
13company’s actions and shall indemnify the agent for liability the
14agent suffers as a result of the auction company’s actions.

end insert


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