AB 2039 Summary

• Prohibits sham bidding at real property auctions effective July 1, 2015, including stating increased bids that were not actually made by other bidders.

• Allows auctioneers to place bids on the seller's behalf only if advance notice is given to all participants that such bidding is reserved and contemporaneous disclosure is made that each bid represents the seller's bid.

• Exempts credit bids made by creditors holding liens on the auctioned property when the credit bid can result in title transfer to the creditor.

• Prohibits lenders and auction companies from requiring homeowners or listing agents to defend or indemnify them from liability for the lender's or auction company's own actions as a condition of transaction approval.

• Declares any indemnification clause violating these provisions to be against public policy, void, and unenforceable.