A seller's property is located within a Mello-Roos Community Facilities District. Which of the following best describes the seller's disclosure obligation to the buyer regarding the special tax?
Correct Answer
A) The seller must provide a written notice disclosing the existence of the district, the annual special tax amount, the authorized facilities and services, and the expiration date of the tax levy
California Civil Code §1102.6b requires sellers of residential property located in a Mello-Roos Community Facilities District to provide buyers with a separate written notice disclosing: (1) the existence of the CFD, (2) the amount of the annual special tax, (3) the facilities and services authorized to be funded, and (4) the expiration date of the special tax levy. This is a standalone statutory obligation distinct from the TDS and NHD report.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An adjustable-rate mortgage (ARM) has an interest rate that changes periodically based on market conditions, typically after an initial fixed-rate period. The rate adjustment is tied to a financial index plus a margin.
Closing costs are the fees and expenses paid by the buyer and seller at the closing of a real estate transaction, beyond the purchase price. They typically range from 2-5% of the purchase price.
A conventional loan is a mortgage that is not insured or guaranteed by a government agency such as the FHA, VA, or USDA. It is originated and funded by private lenders and may be conforming or non-conforming.
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