EstatePass
Practice Of Real Estate DisclosuresMello_roos_and_special_taxesEASY

A California real estate agent explains to a buyer that the home they are considering has a Mello-Roos special tax of $2,200 per year. The buyer asks if this tax is in addition to or instead of the regular property tax. What is the correct answer?

Correct Answer

B) The Mello-Roos tax is levied in addition to the regular Proposition 13 base property tax

The Mello-Roos special tax is levied in addition to the regular Proposition 13 base ad valorem property tax (1% of assessed value). Property owners in CFDs pay both the standard property tax and the additional Mello-Roos special tax.

Answer Options
A
The Mello-Roos tax replaces the regular Proposition 13 property tax
B
The Mello-Roos tax is levied in addition to the regular Proposition 13 base property tax
C
The buyer can choose to pay either the Mello-Roos tax or the regular property tax, but not both
D
The Mello-Roos tax is only charged during years when the regular property tax decreases

Why This Is the Correct Answer

Sign up free to unlock full analysis

Why the Other Options Are Wrong

Sign up free to unlock full analysis

Deep Analysis of This Practice Of Real Estate Disclosures Question

Sign up free to unlock full analysis

Background Knowledge for Practice Of Real Estate Disclosures

Sign up free to unlock full analysis
Sign up free to unlock full analysis

Real World Application in Practice Of Real Estate Disclosures

Sign up free to unlock full analysis

Common Mistakes to Avoid on Practice Of Real Estate Disclosures Questions

Sign up free to unlock full analysis

Related Topics & Key Terms

Key Terms:

mello_roosadditional_taxproposition_13base_taxGov_Code_53340

Related Concepts

Protected classes are groups of people who are legally shielded from discrimination based on specific characteristics.

Radon disclosure involves informing buyers about the presence or potential presence of radon gas in a property. Radon is a naturally occurring radioactive gas that can accumulate in buildings and is the second leading cause of lung cancer.

Fair housing laws apply to a broad range of activities related to housing, including sale, rental, financing, and advertising.

Was this explanation helpful?

More Practice Of Real Estate Disclosures Questions

People Also Study

Related Articles

Practice More Questions

Access 2,000+ practice questions and pass your real estate exam.

Start Practicing