Notice of ‘Supplemental’ Property Tax Bill

Seller to disclose supplemental tax billings to buyer

Effective January 1, 2006, a seller or his agent must deliver to a prospective purchaser a disclosure notice titled, in at least 14- point font, “Notice of Your ‘Supplemental’ Property Tax Bill” and must state, in at least 12-point font, the following:

“California property tax law requires the Assessor to revalue real property at the time the ownership of the property changes. Because of this law, you may receive one or two supplemental tax bills, depending on when your loan   closes.


The supplemental tax bills are not mailed to your lender. If you have arranged for your property tax payments to be paid through an impound account, the supplemental tax bills will not be paid by your lender. It is your responsibility to pay these supplemental bills directly to the Tax Collector.


If you have any question concerning this matter, please call your local Tax Collector’s Office.”


Editor’s note: This tax billing disclosure, as with property conditions, are to be made before the property is placed “under contract” and thus is, as a practical matter, best included as a provision in the purchase agreement entered into by the seller. [See first tuesday Form 150 §11]