California real estate disclosure laws California Real Estate Disclosures | Page 22

5. Mello-Roos Bonds and Taxes
The Mello-Roos Community Facilities Act of 1982 authorizes the formation
of community facilities districts, the issuance of bonds, and the levying of
special taxes to finance designated public facilities and services. The seller
of a property consisting of 1 to 4 dwelling units subject to the lien of a
Mello-Roos community facilities district or subject to a fixed lien
assessment collected in installments to secure bonds issued pursuant to the
Improvement Bond Act of 1915 (Division 10, commencing with Section
8500, of the Streets and Highway Code) must make a good faith effort to
obtain from the district a disclosure notice concerning the special tax and
must give the notice to a prospective buyer. If a district notice is not
obtained, a notice obtained from a non-governmental source may be used,
provided that it clearly and accurately describes the related tax liabilities.
(CAL. CIV. § 1102.6b)

6. Property Taxes
New legislation effective January 1, 2006, requires a seller or his or her
agent to deliver to the prospective purchaser a disclosure notice that includes
both of the following:
(1) A notice, in at least 12-point type or a contrasting color, as follows:
"California property tax law requires the Assessor to revalue real
property at the time the ownership of the property changes. Because of
this law, you may receive one or two supplemental tax bills, depending
on when your loan closes.
The supplemental tax bills are not mailed to your lender. If you
have arranged for your property tax payments to be paid through an
impound account, the supplemental tax bills will not be paid by your
lender. It is your responsibility to pay these supplemental bills directly to
the Tax Collector.
If you have any question concerning this matter, please call your
local Tax Collector's Office."

(2) A title must be included in at least 14-point type or a contrasting
color that reads as follows:
"Notice of Your 'Supplemental' Property Tax Bill."

The disclosure notice requirements of this section may be satisfied by
including the required information in the Mello-Roos disclosure (see Part I,
Section I, Subsection A, Item 5 – Mello-Roos Bonds and Taxes).
Supplemental taxes may be assessed whether a new loan is obtained or an
existing loan is assumed to accomplish the purchase of the property, or
whether the property is purchased without financing.
(CAL. CIV. §1102.6c)

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