CA SB1223

Requires licensed escrow agents and exempt persons acting as escrow agents to return all deposits and fees to bidders upon receiving escrow instructions from the bidder and auctioneer/auction company for foreclosure property sales.

Applies to foreclosure-related real property auction sales, with exceptions for nonjudicial foreclosures under Civil Code Section 2920, judicial foreclosures under Code of Civil Procedure Section 701.510, and certain Commercial Code Section 9604 sales.

Mandates that sureties of escrow agent bonds provide notice to the Commissioner of Corporations and Fidelity Corporation of any release, substitution, cancellation, withdrawal, or nonrenewal of bonds.

Establishes that willful violations constitute crimes, but provides no state reimbursement to local agencies or school districts as the costs result from creating/modifying crime penalties under Government Code Section 17556.