California-Specific Disclosures

Beyond the TDS and NHD, California requires numerous additional disclosures for specific property conditions.

Mello-Roos Disclosure

Mello-Roos refers to the Mello-Roos Community Facilities Act of 1982, which allows communities to create Community Facilities Districts (CFDs) to finance public improvements through special taxes.

What Mello-Roos Covers

Disclosure Requirements

If a property is subject to Mello-Roos taxes:

1. Seller must provide notice of Mello-Roos obligation
2. Amount of annual assessment must be disclosed
3. Notice of Special Tax document required
4. Buyer acknowledgment must be obtained

Key Point: Mello-Roos taxes are not based on property value and are in addition to regular property taxes. They can be substantial.

Impact on Buyers

• Mello-Roos cannot be deducted on federal taxes (not ad valorem)
• Assessment continues until bond is paid off (often 20-40 years)
• Must be disclosed in property listings
• Can affect affordability calculations

Death on Property Disclosure

California Civil Code Section 1710.2 addresses death disclosure:

What Must Be Disclosed

• Manner of death (if asked directly)
• Location on property (if asked directly)
• Seller must answer truthfully if buyer asks specific questions

Stigmatized Properties

Properties may be stigmatized by:

• Deaths
• Crimes
• Alleged hauntings
• Former occupants (criminals, celebrities)

Generally, California does not require disclosure of stigma beyond the 3-year death rule unless asked.

Safety Compliance Disclosures

Smoke Detector Compliance

California requires:

Carbon Monoxide Detector Compliance

California's Carbon Monoxide Poisoning Prevention Act requires:

• CO detectors in all dwellings with fossil fuel appliances
• CO detectors in homes with attached garages
• Detectors on each floor with sleeping areas
• Seller statement of compliance

Water Heater Bracing

All water heaters must be braced, anchored, or strapped to resist falling during an earthquake:

• Required since 1995 for new construction
• Required disclosure for existing homes
• Seller must provide written statement of compliance
• Cost to bring into compliance is typically $50-150

Lead-Based Paint Disclosure

For homes built before 1978, federal law requires:

1. Lead warning statement provided to buyer
2. EPA pamphlet "Protect Your Family From Lead in Your Home"
3. 10-day inspection period for buyer to test for lead
4. Disclosure of known lead hazards or tests

Lead Disclosure Form

Environmental Contamination Disclosures

Sellers must disclose known:

Remediation Requirements

For methamphetamine contamination:

• Property must be remediated before sale
• Health department clearance required
• Disclosure of former lab status required

Additional Required Disclosures

Homeowners Association (HOA) Disclosures

For properties in common interest developments:

Buyer has 3 days to cancel after receiving HOA documents (5 days if by mail).

Supplemental Property Tax Disclosure

Sellers must notify buyers that:

• Supplemental taxes will be due when ownership transfers
• Amount is based on change in assessed value
• Two supplemental bills may be due (for two fiscal years)
• Buyers should budget for additional tax liability

Transfer Fee Disclosure

If a property is subject to private transfer fees:

• Disclosure must be made before transfer
• Amount and payee must be identified
• Duration of the fee must be disclosed
• Filed statement must be recorded against property

Military Ordnance Location

Properties within 1 mile of former military ordnance locations:

• Written disclosure required
• Notice that unexploded ordnance may be present
• Applies to properties near former military bases

Airport Influence Area

Properties within airport influence areas:

• Notice of airport proximity
• Potential noise impacts
• Overflight zones
• Height restrictions