Change of Ownership

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PRELIMINARY CHANGE OF OWNERSHIP REPORT

State law requires the buyer of real property to file a Preliminary Change of Ownership Report with the County Recorder's Office, at the time of recording the purchase. Please reference your Preliminary Change of Ownership Report to determine if additional forms are required to avoid reassessment. If you have any questions about which exclusions apply, please contact our Change of Ownership Department.

If the form is not filed, the Recorder will charge an additional fee of $20. Information which the buyer furnishes on this form assists the Assessor to determine whether there is a change in ownership; and if so, the fair market value of the property. Forms are available by calling or writing the Assessor's Office. Or click here to go to the Forms Section of this web page to view and/or print a form.

CHANGE IN OWNERSHIP STATEMENT
If a Preliminary Change of Ownership Report is not filed with the Recorder, or if it is incomplete, the Assessor mails the buyer a Change in Ownership Statement.

If a person or legal entity, required to file a statement described in Section 480 of the Revenue and Taxation Code, fails to do so within 90 days from the date of a written request by the assessor, a penalty of either:

one hundred dollars ($100), or
ten percent (10%) of the taxes applicable to the new base year value reflecting the change in ownership of the real property or manufactured home, whichever is greater, but not to exceed five thousand dollars ($5,000) if the property is eligible for the homeowner's exemption or twenty thousand dollars ($20,000) if the property is not eligible for the homeowner's exemption and the failure to file was not willful. This penalty will be added to the assessment roll, shall be collected like any other delinquent property taxes and will be subject to the standard penalties for nonpayment.

DEATH OF REAL PROPERTY OWNER
When an owner of real property passes away, and the property is going to transfer to the heirs through probate, or through the medium of a trust, the successor trustee or personal representative must notify the Assessor's Office by filing a Death of Real Property Owner- Change in Ownership Statement. This form should be submitted in a timely manner to avoid reassessment. Forms are available by calling or writing the Assessor's Office. Or click here to go the Forms Section of this web page to view and/or print a form.

PARENT-CHILD EXCLUSION (PROPOSITION 58) GRANDPARENT-GRANDCHILD EXCLUSION transfers that occur on or prior to 2/15/2021
The transfer of a principal residence between parents and children, and the transfer of up to one million dollars ($1,000,000) of other real property between parents and children, is excluded from reappraisal under most circumstances. (Some transfers from grandparents to grandchildren may also be excluded from reappraisal. For example, when both parents of the grandchild are deceased.) A Claim for Reassessment Exclusion for Transfer Between Parent and Child must be filed to receive the exclusion. If the exclusion form is filed after the 105 day period has expired the filing fee is $175. Claim forms are available by calling or writing the Assessor's Office. Or, click here to go to the Forms Section of this web page to view and/or print a claim form.

PROPOSITION 60 AND 110 EXCLUSION FOR SENIOR CITIZENS AND DISABLED PERSONS transfers that occur on or prior to 3/31/2021
PROPOSITION 60: If you are selling your principal residence in Monterey County, and buying a replacement residence in Monterey County, you may be eligible for transfer of your former assessed value to your new home under provisions of Proposition 60 or 110.

(Monterey County's participation in PROPOSITION 90 expired January 9, 2001.)

PROPOSITION 60 AND 110: The other main requirements are:

you or your spouse must be 55 years of age or older (or severely and permanently disabled under provisions of Proposition 110);
the replacement residence must generally have the same or lower value than the former property;
the replacement residence must be purchased within two years from the sale of the original residence; and
both the original and replacement residences must be eligible for a Homeowner's Exemption.

Other requirements may be obtained by calling or writing the Assessor's Office. Or, you may view or print a checklist of the requirements, and the official claim form, by clicking here to go to the Forms Section of this web page.

What is Proposition 19?

On November 3, 2020, California voters approved Proposition 19, The Home Protection for Seniors, Severely Disabled, Families, and Victims of Wildfire or Natural Disasters Act, which makes sweeping changes to a property owner’s ability to transfer their Proposition 13 Assessed Value. The measure generally expands a qualifying homeowners ability to transfers their assessed value and narrows the property tax benefits provided to inheritors of commercial and residential properties. The measure also adds new transfer provisions for victims of disasters and individuals severely handicapped.

Proposition 19 also substantially modifies and in some instances eliminates portions the following initiatives:

Propositions 58 and 193: Excludes transfers between parent and child (58) or grandparent and grandchild (193) from reassessment
Propositions 60 and 90: Homeowners 55+ years of age can sell their primary residence and transfer the base year value of that property to a replacement residence if certain conditions are met. Proposition 60 applies to intra-county transfers, while Proposition 90 applies to inter-county transfers under certain conditions
Proposition 110: Severely disabled persons can transfer the base year value of their primary residence to a replacement residence if certain conditions are met.

Effective 4/1/2021: Transfer of the base year values to Replacement Primary Residence for persons at least Age 55 years or Severely Disabled, or victims of wildfires. BOE Prop-19

Base Year Value Transfer -Persons at least Age 55/Disabled

Transfer of a principal residence to a replacement primary residence that is located anywhere in California and purchased or newly constructed within two years of the sale .
Replacement property can be any value; however, amount above 100% is added to the transferred value; Form BOE-19-B;
A homeowner who is at least age 55 or severely disabled may transfer their base year value up to three times
Transfers of Base year value to Replacement Residence for Severely Disabled persons, form BOE-19-D and also require filing of a certificate of Disability, form BOE-19-DC

Base Year Value Transfer- Intracounty (within the county) Disaster Relief

Transfer of a principal residence to a replacement primary residence that is located anywhere in California and purchased or newly constructed within two years of the sale . Form BOE-19-V.
Replacement property can be any value; however, amount above 100% is added to the transferred value
Type of disaster: wildfire, as defined or natural disaster as declared by the Governor

Base year Transfer-intercounty (properties located in other counties) Disaster Relief

Transfer of a principal residence to a replacement primary residence that is located anywhere in California and purchased or newly constructed within two years of the sale . Form BOE-19-V.
Replacement property can be any value; however, amount above 100% is added to the transferred value
Type of disaster: wildfire, as defined or natural disaster as declared by the Governor

PARENT-CHILD & GRANDPARENT-GRANDCHILD EXCLUSION effective February 16, 2021
Allows transfers of a family home, or family farm, between parents and their children without causing a change in ownership for property tax purposes. It is an exclusion from change in ownership. "Taxable value" means the base year value plus inflationary adjustments; commonly referred to as factored base year value.

Applies to a purchase or transfer of a family home between parents and their children if the property continues as the family home of the transferee. The child must live in the home as their primary residence for the exclusion to qualify.
To qualify, the home must be eligible for the homeowners' or disabled veterans' exemption with the exemption applied for within one year of transfer or purchase.
For a family farm, our current interpretation is that there is no requirement that the family farm contain a home that the transferee lives in to qualify. (Please refer to the BOE website for the latest information.)
To qualify, the assessed value of the home upon purchase or transfer must meet a value test. The value limit is equal to the home's taxable value at time of transfer plus $1 million. Any amount of market value exceeding the limit is added to the taxable value for the transferee. Partial relief is granted under the parent child exclusion up to the value limit; with the remainder assessed at market value.
The $1 million allowance will be adjusted annually beginning in 2023.

Benefit: Limits property tax increases on family homes used as a primary residence by allowing parents to pass on their family home to their children for continued use as a primary residence.

BASE YEAR VALUE (Taxable Value) TRANSFER - Provisions effective April 1, 2021 For Seniors and Severely Disabled Persons
Allows persons over age 55, or severely disabled of any age, to transfer the "taxable value" of their primary residence (original) to a replacement residence anywhere in the state. "Taxable value" means the base year value plus inflationary adjustments; commonly referred to as a factored base year value. "Primary residence" means a residence eligible for the homeowners' or disabled veterans' exemption. Replacement residence must be purchased or newly constructed within two years of the sale of the original home.

To qualify, there is no limit to the market value of the replacement property compared to the original property; but the amount above the original property's market value is added to the transferred taxable value * To qualify, both the original and replacement properties must be eligible for the homeowners' or disabled veterans' exemption.
An application must be filed to transfer the taxable value to the replacement residence.
Transfer of the taxable value of a primary residence can be done three times.

Benefit: Limits property tax increases for seniors and disabled persons needing to move closer to family or medical care, downsize, or find a home that better fits their needs.

Disaster Victims:
Allows victims of a wildfire or natural disaster to transfer the taxable value of their primary residence to a replacement residence anywhere in the state.

Same conditions and requirements as the taxable value transfer for seniors, except there is no age requirement.
To qualify, the damage must be from a wildfire or a Governor declared disaster, with the residence substantially damaged. Over half of the improvement value of the home prior to the fire or natural disaster must be damaged to be considered as "substantially damaged.

Benefit: Limits property tax increases for taxpayers that need to replace a damaged home.

ADDITIONAL LINKS

PROP 19 RESOURCES:

Please NOTE the checklists are generalized, not the final word. If you are contemplating replacing your principal residence, and the transfer of your current assessed value is an important consideration in your decision, be sure to discuss the specific circumstances with a member of the Assessor's Office Change in Ownership Section, BEFORE making any commitments.