BILL NUMBER: AB 2039	INTRODUCED
	BILL TEXT


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:

  SECTION 1.  Section 2079.23 of the Civil Code is amended to read:
   2079.23.   (a)    A contract between the
principal and agent may be modified or altered 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 to
the agency relationship. 
   (b) If an auction company is retained to control aspects of a
transaction of real property subject to this part, including
validating the sales price, as a condition of receiving a lender's
approval of the transaction, the auction company shall defend the
listing agent for any liability alleged to result from the auction
company's actions and shall indemnify the agent for liability the
agent suffers as a result of the auction company's actions.