Are you selling your own home? Are you prepared to deal with tons of disclosures required by State of California?
Well, here’s some background information about the Mello-Roos district requirement that disclosure that you would have to provider every potential buyer who writer an offer on your home.
The seller is required to provide the Notice of Special Tax and the Notice of Special Assessment to prospective buyers, as long as the notice is made available by each local agency. If you are selling your own home, then you are obligated to make a good faith effort to obtain the Notice of Special Tax and the Notice of Special Assessment from each local agency levying a Mello-Roos special tax or a bond assessment.
The law defines “good faith” as honesty in fact in the conduct of the transaction. This law applies to transfers of residential real property with 1-4 units where the transfer is by sale, exchange, installment land contract, lease with an option to purchase, option to purchase, or ground lease coupled with improvements. In addition, the real property being sold must be subject to a continuing lien securing the levy of Mello-Roos special taxes or securing bonds issued pursuant to the Improvement Bond Act of 1915.
The California Association of Realtor’s disclosures has specific language that will provide protection and compliance with Mello-Roos and other disclosures required under the law. If a seller does not provide this disclosure, the transaction will not be invalidated. However, if you willfully or negligently fail to provide the disclosure, you will be liable for actual damages suffered by the buyer. Ironically, disclosures are the main source of challenges to a real estate sale transaction and home owners are held liable up to 5 years after the sale where the buyer has the right to file for damages if they discover any hazardous material that the seller might have known about but failed to disclose.
So, if you are selling your home by yourself, then at least make certain you have all the disclosures that is required by California law. Contact Us if you have any questions about these disclosures.