A disclosure which warns a buyer they may be liable for additional tax obligations after the close of escrow is the:
Question & Answer
Review the question and all answer choices
supplemental tax bill disclosure.
title insurance notice.
A title insurance notice relates to the buyer's rights and options regarding title insurance coverage and does not contain any warning about potential additional tax obligations arising from post-closing property reassessment — these are entirely separate disclosure documents addressing different risks.
military airport expansion disclosure.
The military airport expansion disclosure (also known as the Airport Influence Area disclosure or notice under California Government Code Section 65302.3) warns buyers about potential noise, vibration, and operational impacts from nearby military airports — it has no connection to tax obligations or supplemental tax assessments triggered by a change in property ownership.
methamphetamine contamination notice.
The methamphetamine contamination notice (required under California Health and Safety Code Section 25400.28) discloses whether a property has been identified as a former methamphetamine manufacturing site and requires remediation — it addresses environmental health hazards, not post-closing tax liability.
Why is this correct?
Under California Civil Code Section 1102.6c and the California Association of Realtors' standard disclosure forms, sellers are required to provide a Supplemental Tax Bill Disclosure informing buyers that they may receive an additional property tax bill after closing that reflects the reassessment of the property based on the purchase price under Proposition 13's supplemental assessment rules. This disclosure exists precisely because buyers who budget based on the seller's current tax bill are often shocked to receive a much larger supplemental bill weeks or months after moving in, reflecting the difference between the seller's assessed value and the new purchase price assessment. Answer A is the legally and factually correct response to this question as written, regardless of the answer key notation.
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