What Is a Mello-Roos Disclosure in California?

A Mello-Roos Disclosure informs California homebuyers that a property is located in a Community Facilities District (CFD) where homeowners pay a special tax for public improvements such as schools, roads, and infrastructure. Sellers must provide this disclosure when selling a home within a Mello-Roos district.

🏷️ What Is Mello-Roos in Real Estate?

Mello-Roos is a special property tax applied to homes located in designated Community Facilities Districts (CFDs). These taxes fund public improvements such as:

  • New schools
  • Parks and recreation areas
  • Roads and street improvements
  • Police and fire services
  • Water and sewage infrastructure

The tax is typically added to the homeowner’s annual property tax bill and can last 20–40 years.

📘 Why a Mello-Roos Disclosure Is Required

California law requires sellers to provide a Mello-Roos disclosure when a property lies within a CFD. This ensures buyers understand:

  • The existence and purpose of the special tax
  • The annual amount of the tax
  • The duration of the tax (expiration year if available)
  • Any bond obligations tied to the district

Buyers must receive this information before closing, and often before making an offer.

✔️ Who Must Provide a Mello-Roos Disclosure?

Any seller transferring real estate within a Mello-Roos district must provide this disclosure, including:

  • Homeowners selling a primary residence
  • Investors selling rental properties
  • FSBO (For Sale By Owner) sellers
  • Builders selling new construction

🚫 Limited Exemptions

A few institutional sellers (trustees, probate estates, lenders after foreclosure) may be exempt from completing the form, but they still cannot hide known information about special taxes.

📢 Mello-Roos Requirements for FSBO Sellers

If you are selling your home without a Realtor, you are still responsible for providing a Mello-Roos disclosure. Failing to disclose the special tax can lead to:

  • Contract cancellation
  • Legal claims after closing
  • Financial liability for nondisclosure

The Mello-Roos disclosure is usually delivered with other California-required forms such as the TDS, SPQ, NHD, and earthquake disclosures.

For an overview of required disclosures, see:
Seller Disclosures in Real Estate Explained

📚 Learn more in our Real Estate Glossary.