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Pass California

Transfer of Property, 8% of the examination

Mello-Roos

A special tax levied in a Community Facilities District to fund infrastructure, sitting on top of the Proposition 13 base rate.

Because it is a special tax rather than an ad valorem tax, it is not limited by Proposition 13 and it can add substantially to a bill in a newer development. A seller must make a good-faith effort to obtain and deliver a notice of the special tax to a prospective buyer.

See also

Proposition 13The 1978 measure fixing the base property tax rate at 1% of assessed value and capping annual growth in assessed value at 2%.

See it in a question

One question from Transfer of Property, so the term lands in the context the exam uses it in.

Transfer of Property ยท 8%Escrow

What is the essential function of an escrow in a California transaction?

Written to DRE's published topic list. Not a real examination question, since reproducing those is a misdemeanour under B&P Code section 123.

Where this is tested

Transfer of PropertyThe smallest area. Title insurance, deeds, escrow, tax aspects, and transfer under court supervision.8%Practise Transfer of Property16 questions on this area, every option explained.Practice

Other terms in this area