A buyer is purchasing a home in a new development in Elk Grove, California. The listing discloses that the property is within a Mello-Roos Community Facilities District. The buyer asks whether the Mello-Roos special tax is subject to Proposition 13's 2% annual increase cap. What is the correct answer?
Correct Answer
B) No, Mello-Roos special taxes are NOT subject to Proposition 13's 2% annual increase limitation and may increase based on the terms of the CFD
Mello-Roos special taxes are specifically NOT subject to Proposition 13's 2% annual assessment increase cap. Prop 13 limits the base ad valorem property tax, but Mello-Roos is a voter-approved special tax authorized under a separate statute. The annual increase in Mello-Roos taxes is governed by the terms of the specific CFD bond issue, which may allow increases of 2% or more per year.
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- → A California salesperson's personal real estate blog states, 'I closed 50 transactions last year!' The actual number was 32. A competing agent reports this to the DRE. What is the most likely regulatory outcome?
- → A seller is selling a condominium in a California common interest development (CID). In addition to the TDS, which disclosure package is the seller required to provide under California Civil Code §4525?
- → A seller completing the Transfer Disclosure Statement in California must disclose various property conditions. All of the following must be disclosed on the TDS EXCEPT:
- → Under California Civil Code §1102, what is the primary purpose of the Transfer Disclosure Statement (TDS) in a residential sale?
- → A California listing agent receives a third-party NHD report confirming the property is in a Seismic Hazard Zone. The report also includes a supplemental notation indicating the property lies within a tsunami inundation zone per California Geological Survey mapping. The seller asks the agent whether the tsunami risk must be disclosed to the buyer. Which of the following is the most accurate statement of the agent's disclosure obligation under current California law (effective January 1, 2025)?
- → A property in a California Mello-Roos district has a base Proposition 13 property tax of 1% on its assessed value of $600,000, plus a Mello-Roos special tax of $3,200 per year. What is the total annual property tax bill for this property?
- → A California buyer's agent conducts a visual inspection of a property and observes extensive, recently applied caulking around all window frames and along the base of the exterior walls. What is the buyer's agent's most appropriate next step?
- → A California buyer's agent conducts a visual inspection and notices that the property's water heater is not strapped to the wall as required by California law for seismic safety. Under California Health and Safety Code §19211, water heaters must be braced. What should the buyer's agent do?
- → Tenant died in apartment unit two years ago. Landlord discloses death to prospective tenant, mentioning AIDS-related cause. Which statement is correct?
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