A buyer is comparing two similarly priced homes in Temecula. One is located in a Mello-Roos Community Facilities District with a $3,600 annual special tax; the other is not. How should an agent accurately describe the financial impact of the Mello-Roos tax on cost of ownership?
Correct Answer
B) The Mello-Roos tax adds $3,600 per year to the cost of owning the CFD home, which the buyer should weigh alongside mortgage payments, insurance, and base property taxes when comparing the two properties
Under the Mello-Roos Community Facilities Act of 1982 (Cal. Gov. Code §53311 et seq.), a CFD special tax is a fixed annual obligation levied on property within the district, independent of assessed value. The $3,600 annual tax ($300/month) directly increases the total cost of ownership and must be factored into the buyer's budget alongside mortgage, insurance, HOA fees, and base property taxes. An agent has a duty under Cal. Civil Code §2079 to disclose material facts affecting the property's value and desirability, which includes this ongoing financial obligation.
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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?
- → A homeowner in a California Mello-Roos district wants to pay off the remaining Mello-Roos bond obligation on their property. The outstanding principal balance of the bonds allocated to the property is $35,000, and the CFD charges a 3% prepayment premium. What is the total payoff amount?
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