Disclosing Mello‑Roos When Selling in Murrieta

Selling your Murrieta home and seeing “Mello-Roos” on your tax bill can feel confusing. You want a smooth sale, clear disclosures, and no last-minute lender or escrow delays. In a few minutes, you will know exactly what Mello-Roos is, what California law requires you to deliver, how to get the official Notice of Special Tax, and how escrow will handle it at closing. Let’s dive in.

What Mello-Roos means in Murrieta

Mello-Roos is a special tax that applies only to properties inside a specific Community Facilities District, or CFD. Local agencies create CFDs to fund public improvements or services, and the special tax usually appears as a separate line on your Riverside County property tax bill. It is not a percentage of assessed value. The amount is set by the district’s Rate and Method of Apportionment.

Many CFDs that issued bonds collect the special tax for decades until the bonds are paid. Service CFDs can continue as long as services are provided. In Riverside County, CFD charges follow the same due and delinquency schedule as regular secured property taxes, which the County summarizes on its special assessments page. You can review how CFD charges appear on the bill and the general due dates on the county site for special assessments and tax timelines. Riverside County explains how special assessments appear and lists due dates.

Your legal duty to disclose

California law requires you to make a good faith effort to obtain and deliver the official “Notice of Special Tax” to buyers when your property is subject to a continuing lien for a Mello-Roos tax. The seller duty is described in Civil Code Section 1102.6b. See the seller disclosure requirement in Civil Code 1102.6b.

Local agencies must furnish the Notice within five working days of your request and may charge up to 15 dollars. The Notice must be titled “NOTICE OF SPECIAL TAX” and include the levying entity, the current annual amount, the maximum possible tax, any allowed annual increase, the date the tax may end, and a contact phone number if available. Government Code 53340.2 explains timing and content.

If an agency does not provide an official Notice, you may deliver substantially equivalent information that covers the same required items. Civil Code 1102.6b allows a nongovernmental equivalent if it includes the statutory elements.

How to confirm if your home is in a CFD

Use these practical checks to verify Mello-Roos status for a Murrieta property:

• Review your current secured property tax bill. Look for any CFD line items and amounts. If you need a copy, you can obtain duplicate bills or look up parcel information. Use the County Treasurer-Tax Collector’s lookup tools.
• Check the preliminary title report or vesting deed. Title reports often flag recorded CFD liens or obligations.
• Search local CFD lists and maps. The City of Murrieta maintains a page with city-formed CFDs, boundaries, Rate and Method documents, and continuing disclosures. See the City of Murrieta CFD page.
• Confirm school district CFDs. Murrieta Valley Unified School District administers several CFDs used to fund school facilities. Review Murrieta Valley USD CFD information.
• Confirm water or utility CFDs. Western Municipal Water District administers CFDs in parts of the Murrieta service area. Check Western Municipal Water District’s CFD page.
• Request the Notice of Special Tax. Contact each levying agency’s designated office. Agencies must respond within five working days and may charge up to 15 dollars. Government Code 53340.2 outlines this process.

What to deliver to buyers and when

At minimum, deliver the official “Notice of Special Tax” from each levying agency. If the agency does not provide a Notice, deliver equivalent documentation that clearly states:

• Name of the CFD or levying entity
• Current annual special tax for your parcel
• Maximum tax that may be levied
• Allowed annual escalation (percentage or CPI formula)
• The date the tax may end
• A contact phone number if available

Helpful supporting materials include a copy of your most recent secured property tax bill showing the CFD line items, and a short excerpt of the district’s Rate and Method or continuing disclosure page that shows current levies and maximums. Provide these early in marketing and no later than contract acceptance so buyers and lenders can review them without delays. Civil Code 1102.6b explains seller obligations and alternatives.

Escrow, taxes, and closing

Escrow typically prorates general property taxes and CFD special taxes as of the closing date. If the current year bill is not yet available, escrow often uses the prior year’s amounts and later adjusts if needed. Sample escrow provisions show how taxes and assessments are prorated.

Be aware that supplemental tax bills triggered by a change in ownership are handled differently than regular secured taxes. Your title or escrow team will explain how local practice applies. Learn more about supplemental tax bills.

Lenders treat a disclosed CFD special tax as a recurring housing cost. Expect the buyer’s lender to request the Notice details during underwriting.

Can you pay off Mello-Roos at sale?

Maybe. Prepayment rules are district specific and depend on the CFD’s governing documents. Some CFDs allow partial or full prepayment. Others do not, or they require premiums and administrative fees to protect bondholders. Always request a written payoff calculation from the CFD administrator before making promises. Local ordinances show that prepayment formulas can be technical and vary by district. See an example of CFD prepayment provisions in Riverside County.

Common pitfalls to avoid

• Relying only on MLS remarks. MLS notes do not replace the statutory Notice or equivalent disclosure required by law.
• Missing a non-city CFD. Check school district and water district CFDs, not just city CFDs.
• Waiting too long to request Notices. Agencies have five working days, and lenders need the numbers to underwrite.
• Not keeping records. Save proof of your requests, the Notices received, and the documents you delivered to buyers.
• Providing partial data. Include current amount, maximum, escalation, potential end date, and a contact.

Quick seller checklist

• Step 0: Confirm CFD status. Check your tax bill, title report, city CFD list, school district CFDs, water district CFDs, and county parcel tools. County parcel and bill lookup tools.
• Step 1: Request the “Notice of Special Tax” from each levying agency. Allow five working days and expect a fee up to 15 dollars. Statutory timing and content.
• Step 2: If an official Notice is not available, assemble equivalent materials that include all required items. Seller alternatives allowed by Civil Code 1102.6b.
• Step 3: Provide the Notice or equivalent to buyers, the buyer’s lender, and escrow. Include a copy of your latest tax bill for proration. How escrow prorates taxes.
• Step 4: If payoff is requested, get a written calculation from the CFD administrator before committing. Example of prepayment rules.
• Step 5: Keep a file with all requests, Notices, and deliveries to show your good faith effort.

Local contacts and resources

• City of Murrieta CFDs: lists of districts, RMAs, boundaries, and disclosures. City of Murrieta Community Facilities Districts
• Murrieta Valley Unified School District CFDs: annual reports and contacts. MVUSD CFD information
• Western Municipal Water District CFDs: Murrieta service area special tax info. Western MWD CFDs
• Riverside County Assessor and Treasurer-Tax Collector: special assessments, due dates, and how charges appear on bills. Riverside County special assessments overview

Ready to list with confidence and keep your sale on track? Our local team pairs listing expertise with in-house mortgage guidance so your disclosures, proration, and loan timelines stay aligned. Reach out to Kingdom Keys Real Estate & Loans to get started.

FAQs

What is Mello-Roos on a Murrieta property tax bill?

• It is a special tax from a Community Facilities District that funds improvements or services and appears as a separate line on your Riverside County tax bill.

What must Murrieta home sellers disclose about Mello-Roos?

• You must make a good faith effort to obtain and deliver the official Notice of Special Tax, or provide equivalent information if the agency does not provide a Notice.

How fast can I get the Notice of Special Tax in Murrieta?

• The levying agency must provide the Notice within five working days of your request and can charge up to 15 dollars.

How does escrow handle Mello-Roos at closing in Murrieta?

• Escrow typically prorates the current installment between buyer and seller; if the current bill is not available, escrow often uses last year’s amounts and later adjusts.

Can I pay off my Murrieta Mello-Roos before selling?

• Possibly. Some CFDs allow prepayment while others do not. Request a written payoff calculation from the CFD administrator to confirm.

What if the agency will not issue a Notice of Special Tax?

• Provide substantially equivalent documentation that includes all required items, such as current amount, maximum tax, escalation, end date, and a contact number.