Prop. 19 is one of my favorite laws in California, almost like a best kept secret, even though its not. Here is what you need to know, what your client needs to know, and more.
– What Prop 19 actually changed
– Why this matters so much in Fullerton, Yorba Linda, Fullerton, Anaheim Hills, Brea, Placentia and all of California
– The filing deadline agents and homeowners should know about
– How this affects listing price
If you’re working with a seller who owns a home in Fullerton, Placentia, Yorba Linda, Brea, Anaheim Hills or anywhere in the state of California Proposition 19 is probably the most important conversation you’ll have before you even talk about listing the home.
officially the Home Protection for Seniors, Severely Disabled, Families, and Victims of Wildfire or Natural Disasters Act — is a California constitutional amendment approved by voters on November 3, 2020 (narrowly, with just over 51% of the vote). It significantly changed property tax rules under Proposition 13.
The main parts with different effective dates:
Expanded Base Year Value Transfers (effective April 1, 2021)
Eligible homeowners can transfer the lower assessed (taxable) value of their primary residence to a replacement primary residence anywhere in California.
Who qualifies
• Age 55 or older (at the time of sale of the original home; one spouse meeting the age is usually enough)
• Severely and permanently disabled (any age; requires physician certification)
• Victims of a Governor-declared wildfire or natural disaster (property substantially damaged)
Key rules
• The original home must have been your principal residence.
• Buy or newly construct the replacement home within two years before or after selling the original (one of the two events must occur on/after April 1, 2021).
• You can transfer the base year value up to three times in a lifetime (six times for a married couple in some cases; no limit for certain disaster victims).
• If the replacement home costs more, the difference in market value is added to the transferred assessed value (you do not reset to full market value).
• Claim forms are filed with the county assessor where the replacement home is located (typically within 3 years for full retroactive relief).
I’m not a CPA or attorney, and this is exactly the kind of situation where I’d recommend your client loop one in early. But if you want a second set of eyes on how title is currently vested on an inherited property, that’s where I can help. If your looking for a online resource to calculate your sellers property tax transfer, I have that too!— happy to jump on a call with you and your client.
Christina Smolskis,
North Orange County Title Rep
Partners Karen Nelson
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