All properties are required to be reassessed as of the date of change in ownership. Certain exclusions from reassessment may apply, therefore avoiding an increase in your property taxes. Our office reviews all recorded deeds to determine which properties require reappraisal under the law.
Property owners are required to notify the County Assessor of any ownership changes promptly to avoid potential interest charges or penalties. Under California law, county assessors may correct assessments for up to eight prior years if ownership changes go unrecorded or if a Change in Ownership Statement is not filed.
For most ownership changes (except those due to the owner's death), property owners must file a Preliminary Change in Ownership Report (PCOR) at the time the grant deed is recorded. For unrecorded transfers, a Change in Ownership Statement must be filed within the prescribed time limits from the date of transfer. Failure to notify the Assessor may result in failure-to-file penalties.
Changes in ownership that are automatically excluded from reassessment include the following:
Transfers of real property between husband and wife, which include transfers in and out of a trust for the benefit of a spouse, the addition of a spouse on a deed, transfers upon the death of a spouse, and transfers pursuant to a divorce settlement or court order (Revenue and Taxation Code § 63; Property Tax Rule 462.220).
Transfers of real property between registered domestic partners that occur on or after January 1, 2006, which include transfers in and out of a trust for the benefit of a partner, the addition of a partner on a deed, transfers upon the death of a partner, and transfers pursuant to a settlement agreement or court order upon termination of the domestic partnership (Revenue and Taxation Code § 62p).
Transactions only to correct the name(s) of the person(s) holding title to real property or transfers of real property for the purpose of perfecting title to the property (for example, a name change upon marriage)
Transfers of real property between co-owners that result in a change in the method of holding title to the property without changing the proportional interests of the co-owners, such as a partition of a tenancy in common.
Transfers between an individual or individuals and a legal entity or between legal entities, such as a co-tenancy to a partnership or a partnership to a corporation, that results solely in a change in the method of holding title to the real property and in which proportional ownership interests of the transferors and the transferees, whether represented by stock, partnership interest or otherwise, in every piece of real property transferred, remains the same after the transfer.
The creation, assignment, termination, or reconveyance of a lender’s security interest in real property or any transfer required for financing purposes only (for example, co-signor). It is advisable the title be reverted to its original owner(s) within 6 months of recordation. Lack of or failure to return title as stated is a potential for change in ownership. In such a case, the Assessor may reassess the property. Note: The Assessor may request financial substantiation for the transaction once the title has been reverted to the original owner(s).
The substitution of a trustee of a trust or mortgage.
Transfers that result in the creation of a joint tenancy in which the transferor remains as one of the joint tenants.
Transfers of joint tenancy property to return the property to the person who created a joint tenancy (i.e., the original transferor).
Transfers of real property to a revocable trust, where the transferor retains the power to revoke the trust or where the trust is created for the benefit of the transferor or the transferor’s spouse.
Transfers of real property into a trust that may be revoked by the creator/grantor who is also a joint tenant and which names the other joint tenant(s) as beneficiaries when the creator/grantor dies.
Transfers of real property to an irrevocable trust for the benefit of the creator/grantor or the creator/grantor’s spouse.
