California Real Estate Broker ExaminationPractice of Real Estate and Mandated DisclosuresMedium
A real estate agent is listing a property located within a Mello-Roos Community Facilities District. Which of the following statements accurately describes the agent's disclosure obligations regarding Mello-Roos?
- AThe agent must verbally inform the buyer about Mello-Roos during the first showing.
- BThe agent must disclose that the property is in a Mello-Roos district and advise the buyer to obtain and review the official notice.
- CThe agent is solely responsible for providing the official Mello-Roos disclosure form to the buyer.
- DMello-Roos disclosures are only required if the special taxes exceed a certain percentage of the property's value.
Show answer & explanationAnswer & explanation
Correct answer: B. The agent must disclose that the property is in a Mello-Roos district and advise the buyer to obtain and review the official notice.
California law requires the seller (or their agent) to disclose that a property is subject to Mello-Roos special taxes. While the agent isn't solely responsible for the official notice, they must advise the buyer to obtain and review it, typically provided by the seller or directly from the district.
Why the other options are wrong
- A. Verbal disclosure is insufficient; a formal written disclosure is required by law.
- C. While the agent facilitates, the seller is primarily responsible for providing the official notice, often through escrow.
- D. Disclosure is mandatory if the property is in such a district, regardless of the tax amount relative to property value.
Mello-Roos Disclosure
Disclosure required for properties located within Mello-Roos Community Facilities Districts, which levy special taxes for public facilities/services.
- Mandatory disclosure for properties in Mello-Roos districts.
- Agent must disclose its presence and advise buyer to review official notice.
- Special taxes are in addition to regular property taxes and bond assessments.
Memory trick: Mello-Roos: Know the Tax, Get the Facts!