Contract Corner
Mello-Roos District and 1915 Bond Act Disclosures
Sellers of certain real property located within a Mello-Roos Community Facilities district or within an area subject to a fixed lien assessment collected pursuant to the Improvement Bond Act of 1915 must provide the disclosure notice(s) to prospective buyers of that property.
A "Mello-Roos Community Facilities district" or "Mello-Roos district" is an entity formed by a local government, district, or agency to finance the provision of certain designated public services and capital facilities by levying special taxes. The special taxes are levied against property owners within the area in which the services are to be furnished. Among the services and facilities that may be provided through the formation of a Mello-Roos district are police and fire protection services, ambulance and paramedic services, parks, elementary and secondary schools, libraries, museums, and cultural facilities. The Improvement Bond Act of 1915 allows a city to issue bonds that are secured by assessments to pay the cost of an improvement in any of the streets, avenues, lanes, alleys, courts, places, or public ways in the city.
The law requires that a seller of real property must discover and disclose to prospective buyers information regarding the Mello-Roos special tax or the Improvement Bond assessments from each local agency that levies a special tax or that collects an assessment on the property being transferred. The seller must provide these disclosures, the "Notice of Special Tax" and the “Notice of Special Assessment” in addition to all other disclosures required by law.
Navigating through the labyrinth of details and information of a transaction is exactly why you, savvy buyers and sellers, need an experienced team. The SARKISSIAN + PERERA GROUP is here to help guide you through this process and ensure that you achieve all of your real estate goals!
© 2018 Berkshire Hathaway HomeServices California Properties (BHHSCP) is a member of the franchise system of BHH Affiliates LLC. Any unauthorized reproduction or use of this material is prohibited. This information is believed to be accurate as of October 3rd, 2018. It is not intended as a substitute for legal advice in individual situations, and is not intended to nor does it create a standard of care for real estate professionals. BHH Affiliates LLC and BHHSCP do not guarantee accuracy of all data. Information has been obtained from various sources and will not be verified by broker or MLS.
*Sources: TheRealDeal.com, PasadenaNow.com, PasadenaStarNews.com, Car.org. |
