There are a number of terms and abbreviations you will come across in the MLS (which stands for Multiple Listing Service, BTW) when house hunting here in California ( and there will be different ones if you are looking elsewhere - so check with your agent).

I mention Mello Roos again only because it comes up so often as a question. See my earlier posts on this, including information on taxes.

HOA stands for Home Ownership Association. Very common here but perhaps a new term for those of you in other areas. Basically this is a group of homeowners in a subdivision or condo complex that manage the common areas, collect the fees for maintenance and repairs, pay the bills, establish and enforce the standards of the subdivision and related tasks. In some associations there may be a professional management company hired to do this instead, especially in larger groupings. In New England you commonly see Condo Association which is essentially the same thing.

HOA Fees are the fees levied against each property owner monthly for a variety of reasons, most commonly maintenance of the common areas, but also for repairs, the pool, gate or other community features if applicable, parking areas, etc. These can range from a fairly low amount, say $35/month, up to hundreds of dollars.

APN stand for Assessor's Parcel Number. Here in CA this is used to identify the actual property in question in the assessor's record (public record). Each property has a unique APN. The public record will identify the owners, including past ones, information about the property, details about past sales and mortgages, a parcel map, among other details.

Are there other terms you have seen and wonder about? Let me know and I will post the explanations.

Have a great weekend!

GO BEARS!

WHAT ARE MELLO ROOS and CAN I DEDUCT THEM ON MY TAXES?

During your search for a new home you will like come across the term MELLO ROOS, noted in the MLS listing, and wonder what this is. Essentially they are fees (in some subdivision) to pay for improvements such as sidewalks, sewers, services, and related items; they do have a lifetime and will expire, but it could be 20 years or more. They are different than HOA fees.

I wanted to keep this post short, but you can read more about Mello Roos here.

A buyer asked me recently if Mello Roos are tax deductible. Tough question - IT DEPENDS. Here is some information that will help with this question.

But the best advice is to check with your Accountant - you don't want a problem with the IRS. And this will likely also be considered by your lender, along with insurance and property taxes when determing what you quality for.