Auctioneers: real estate.

(1) Existing law regulates the activities of auctioneers and auction companies and requires that they maintain a bond issued by a surety company admitted in this state or an equivalent deposit. Existing law defines auction in this regard and excepts from this definition a sale of real estate or a sale of real estate with personal property or fixtures or both in a unified sale, as specified. Existing law requires auctioneers and auction companies to post or distribute to the audience the terms, conditions, restrictions, and procedures under which goods will be sold at the auction. A violation of certain of these provisions is punishable by specified fines, and a violation of these provisions generally is a misdemeanor. This bill would remove the exception provided for real estate from the definition of auction for the purposes described above, thereby bringing real property auctions within those provisions, with specified exceptions. The bill would require an auction company and auctioneer to post or distribute to the audience a description of all fees, both refundable and nonrefundable, that will be levied on bidders, as well as any changes to those fees. With respect to auctions of real property auctioned with reserve, the bill would require an auction company and auctioneer to post or distribute to the audience a clear explanation of the terms "auctioned with reserve" and "sale subject to seller confirmation, approval, or acceptance," and the procedures and timelines to be used in connection with sales that are subject to these requirements. A violation of these provisions would be subject to specified fines. The bill would establish requirements for the return of fees and deposits by auctioneers for auctions of real property auctioned subject to confirmation, approval, or acceptance by a seller, beneficiary, or mortgagee. By changing the definition of a crime, the bill would impose a state-mandated local program. (2) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.