A buyer in Chula Vista discovers during the inspection contingency period that the home is located in a Mello-Roos Community Facilities District with an annual special tax of $3,200. The seller did not mention this in initial discussions. Under California law, what are the seller's disclosure obligations regarding Mello-Roos taxes?
Correct Answer
A) The seller must provide a separate Mello-Roos disclosure notice to the buyer under California Civil Code §1102.6b
Under California Civil Code §1102.6b, the seller of property subject to a Mello-Roos Community Facilities District lien must provide a separate written notice to the buyer disclosing the existence of the special tax. This is a mandatory seller disclosure independent of the TDS.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An option contract gives one party the exclusive right, but not the obligation, to purchase or lease a property at a specified price within a specified time period. The buyer pays option consideration to keep the option open.
A purchase agreement is a legally binding contract between a buyer and seller that outlines the terms and conditions for the sale of real property. It is also commonly called a sales contract, purchase and sale agreement, or earnest money agreement.
Specific performance is a court-ordered remedy that compels the breaching party to fulfill their obligations under the contract rather than simply paying monetary damages. It is an equitable remedy used when monetary damages would be inadequate.
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