SB 1323 Summary

• Requires equity sales of foreclosed properties (1-4 residential units where debt is ≤90% of appraised value) to be listed on multiple listing services with initial pricing at appraised value, managed by a randomly selected real estate licensee.

• Mandates automatic 5% price reductions every 30 days if no qualifying offer received, continuing up to four reductions, after which trustee may proceed to public auction.

• Implements multiple counter-offer procedure when multiple qualifying offers received: trustee makes 5% counter-offers to all offerors, continues until highest price achieved and only one offeror accepts.

• Establishes liability for damages if trustee negligently fails to accept qualifying offers within required timeframe or willfully restrains offers; mischaracterizing equity sales as auctions constitutes wrongful foreclosure.

• Modifies definition of "real estate licensee" to mean real estate broker only (not salesperson); contains sunset provisions effective January 1, 2026, with separate operative versions before and after that date.