Dear Forms Committee: I’m preparing an offer for a buyer on a home where the assessor’s office shows a tax assessment of $32 per year for a special fire district. Should I mark the ‘is’ box in section 42 of the Sale Agreement, Levy of Additional Property Taxes, due to this special tax assessment?

No. Section 42 of OREF 001– Residential Real Estate Sale Agreement applies to properties that receive a tax deferral for a reason approved by the county (such as farm or forest use). The accrued amount of the deferred taxes is tracked by the county for a period of time, in many cases ten years, and may become payable if the deferred status changes in the future. This can cause an unexpected financial hardship for a buyer unaware of the deferral or how to ensure it continues; therefore, disclosure is needed. This is accomplished by checking the box for ‘is’ in Section 42.

To summarize, the ‘is not’ box should be marked if unpaid deferred taxes are not accruing, as is the case for the property your buyer is considering.

All comments and responses from OREF or its staff, managers, and volunteers are non-legal opinions made for general purposes. Each Forms subscriber must rely solely upon their Principal broker or personal legal counsel for specific advice and instruction. You and your client should independently confirm that the Form(s) you use are legally suitable for the purposes intended and that they are current with respect to all laws and regulations.