Brokerage Reminder: Proposition 13 – transactions excluded from reassessment
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Clients often ask their brokers and agents for advice when adding or removing persons from title in conveyances which are outside of a fee transaction. Such advice would be based on knowledge about conveyances or other transfers which change title and trigger reassessments as dictated by Proposition 13 (Prop. 13).
When a title transfer triggers reassessment, the property will be reassessed establishing a new base year value for the property equal to the market value (current price) of the property at the time of transfer. However, not all transfers trigger reassessment.
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About The Author
Fernando Nunez
is first tuesday's in-house Broker Consultant. Fernando has over 20 years' experience in California real estate, including the single family residence sales, mortgage loan origination, investment properties and commercial leasing. Fernando assists the editorial staff with real estate writings and writes first tuesday's weekly Brokerage Reminder series.
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nice article…
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What about a living trust transfer from parent to child or children upon death of the parent? Would that transfer trigger a reassessment?
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Dear Jack,
According to the California State Board of Equalization, a transfer from parent to child(ren) upon death would not constitute reassessment if the transfer meets the terms outlined in the California Revenue and Taxation Code.
Everyone’s situation is unique. We recommended that you seek legal advise before transferring title, even in the event of the death of a parent.
Regards,
ft Editorial Staff
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