A seller in a Mello-Roos district in California fails to provide the required written Mello-Roos disclosure to the buyer before closing. After closing, the buyer discovers the $3,800 annual Mello-Roos tax. Under California law, what is the buyer's potential remedy?
Correct Answer
B) The buyer may recover actual damages from the seller; the completed transfer is not invalidated
The Mello-Roos notice required by Civil Code §1102.6b belongs to the transfer disclosure article, and Civil Code §1102.13 fixes the consequence of a breach: no transfer is invalidated solely because a person failed to comply with the article, but anyone who willfully or negligently fails to perform a duty under it is liable for the transferee's actual damages. Once escrow has closed, then, the buyer's claim is for money — typically the reduced value of a property carrying a $3,800 annual special tax. A notice delivered after the offer is signed but before closing gives the buyer a short window to back out; after closing that window is gone. Undoing a closed sale would take proof of fraud, which a missed disclosure by itself does not establish.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Violating fair housing laws can lead to significant penalties, including fines, civil liability, and professional discipline.
Death on property disclosure addresses whether sellers must inform buyers about deaths that occurred on the property, including natural deaths, suicides, and murders. Requirements vary significantly by state.
Environmental hazards disclosure involves informing buyers about environmental contamination or hazards affecting or potentially affecting a property, including underground storage tanks, contaminated soil, hazardous waste, and proximity to Superfund sites.
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