CLTA News Express
An Express Article from the California Land Title Association
Bulletin 2005/06 –89 - January 24, 2006
New Law Requires Home Sellers to Give Notice of Supplemental Property Tax
Effective January 1, 2006, another disclosure law became effective as enacted by Assembly Bill 459 – a seller of any residential real property must give prospective home buyers a disclosure notice that the buyer may have to pay one or two supplemental tax bills.
The new law expressly provides the seller of residential real property with the sole responsibility for making the disclosure about supplemental property tax bills. This notice must be made separate from other contract disclosures and be made a part of the transaction disclosure documents as soon as practicable before the close of escrow.
This new law is intended to prevent new home buyers from being surprised when they receive supplemental property tax bills that many lenders will not pay through impound accounts.
