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Practice Of Real Estate DisclosuresMello_roos_and_special_taxesEASY

Under California law, when a property within a Mello-Roos Community Facilities District is sold, what disclosure must the seller provide to the buyer?

Correct Answer

D) A written notice of the Mello-Roos special tax lien, including the annual tax amount and the estimated payoff date of the bonds

Under California Civil Code §1102.6b, the seller must provide the buyer with a written notice disclosing the Mello-Roos special tax lien, including the current annual tax amount and an estimate of when the bonds will be fully repaid. This ensures the buyer understands the ongoing tax obligation.

Answer Options
A
A verbal notification that the property may have additional taxes
B
Proof that the seller has paid all Mello-Roos taxes through the end of the current fiscal year
C
A letter from the CFD board of directors approving the sale
D
A written notice of the Mello-Roos special tax lien, including the annual tax amount and the estimated payoff date of the bonds

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Related Topics & Key Terms

Key Terms:

mello_roosdisclosurewritten_noticeannual_taxCal_Civil_Code_1102.6b

Related Concepts

Flood zone disclosure requires informing buyers whether a property is located in a designated flood zone as mapped by FEMA. Properties in high-risk flood zones may require mandatory flood insurance.

HOA disclosure requires informing buyers about the existence, rules, fees, financial health, and restrictions of a homeowners association governing the property. This information helps buyers understand their obligations before purchase.

The Lead-Based Paint Disclosure is a federally mandated disclosure required for all residential properties built before 1978. Sellers and landlords must disclose known lead-based paint hazards and provide the EPA pamphlet "Protect Your Family From Lead in Your Home."

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