SUPPLEMENTAL PROPERTY TAX DISCLOSURE

According to existing State law, Supplemental Tax charges are triggered when there is a change of ownership and the property is reassessed. These charges reflect the difference between the property's old value and the new value, which is typically higher. Because Supplemental Tax bills are in addition to the regular annual property tax bills, and are not included in an impound account where one might exist, many home buyers have been blindsided during their first year of ownership by the obligation to pay these supplemental taxes.

The California Legislature has responded by requiring sellers of most residential properties of up to four units, or their agents, to disclose to prospective buyers that they may owe supplemental taxes.

This “Notice” is mandatory beginning January 1, 2006. It will be included in our Comprehensive Report package -- still priced at $89.95 -- along with the added value of a SUPPLEMENTAL TAX ESTIMATOR which guides the buyer through an easy-to-use schedule to estimate the amount of the expected supplemental tax bill(s).

To order a JCP Report or a Tax Report, call 800-748-5233 or go to http://www.JCPreports.com

MEGAN'S LAW DISCLOSURE

The sex-offender database disclosure has been revised to reference the State's new Megan's Law website, which provides online information about registered sex offenders in the neighborhood. The revised disclosure language will become mandatory on April 1, 2006, for residential sellers of up to four units, as well as for residential landlords. The revised disclosure is optional until that time.

For your protection, JCP and FANHD have already included the revised language in our Natural Hazard Disclosure Report. Our Megan’s Law disclosure section with this revision now reads as follows:

METHAMPHETAMINE CONTAMINATED PROPERTY CLEANUP ACT OF 2005

Assembly Bill 1028 has been adopted into law and becomes effective January 1, 2006. This law requires a property owner to disclose in writing to a prospective buyer or tenant if local health officials have issued an order prohibiting the use or occupancy of a property contaminated by "meth lab" activity. The owner is also required to provide a copy of the pending order to the buyer or tenant to acknowledge receipt in writing. A civil penalty of up to $5,000 may apply for non-compliance. Aside from disclosure requirements, this new law also sets forth procedures for local authorities to deal with meth-contaminated properties, including the filing of a lien against a property until the owner cleans up the contamination or pays for the cleanup costs.

Our Natural Hazard Disclosure Report now includes a "Methamphetamine Contaminated Property Advisory" to alert users about the existence of this law and the requirement for actual knowledge disclosure, if applicable.

2-MILE AIRPORT PROXIMITY

An “airport influence area”, also known as an “airport referral area,” is the area in which current or future airport-related noise, over flight, safety, or airspace protection factors may significantly affect land uses or necessitate restrictions on those uses, as determined by an ALUC pursuant to Section 11010 of the Business and Professions Code, or Section 1103.4 or 1353 of the Civil Code.

Many airports do not have an officially-designated Airport Influence Area or a current airport influence map established by an ALUC, and many Counties and Cities have not adopted any different or additional disclosure form that notifies a buyer of possible nuisance or annoyance from airport operations. In these cases, the seller may satisfy any local requirement for an airport proximity disclosure with a written disclosure of an airport within two (2) statute miles of the subject property (California Civil Code Section 1102.6a).

To facilitate the seller's disclosure of this new material fact, the JCP and FANHD Natural Hazard Disclosure Report will now disclose if the subject property is located in an officially-designated Airport Influence Area (AIA) or is located within 2 statute miles of an airport for which no AIA has been officially designated. In either case, the statutory "Notice of Airport In Vicinity" is included in the disclosure.