In 2015 purchase price cannot be kept a secret!

New law, Assembly Bill 1888, repeals the right of a principal to demand that the transfer tax be shown on a separate piece of paper. This law comes into effect on January 1, 2015.  Previously, a seller or buyer of real property could demand from the county that the documentary transfer tax (the DTT) be stated apart from the recorded document.  This enabled some principals to effectively keep the purchase price secret, since the amount of the transfer tax can be reliably used to deduce the purchase price. (Although the information could be obtained through a California Public Records Act request.) Now every document subject to the DTT when it is submitted for recordation must show on its face the amount of the tax due. These rules have little impact on listings input into an MLS since MLS Model Rules require the reporting of the selling price within two days after the final closing.

In this link please find an explanation of Documentary Transfer Tax and the Southern California counties Transfer Tax Rates.

San Bernardino County Adopts Prop 90!

sanbernTax Savings for Seniors (prop 60/90)

Proposition 60 and 90 are property tax savings programs for homeowners age 55 or older who sell their home and buy another of equal or lesser value.  They allow the taxable value of the original home to be transferred to the replacement home, preventing an increase in property tax due to the relocation.

Important to note about these 2 tax transfers initiatives is that Proposition 60 allows transfers of base year values within the same county (intra-county), while proposition 90 allows transfers from one participating California county to another (inter-county). San Bernardino County has adopted to participate in Prop 90 effective November 20th, 2014. Now the following 10 California counties will be the ones talking part in Prop 90 transfers: Alameda, El Dorado, Los Angeles, Orange, Riverside, San Bernardino, San Mateo, San Diego, Santa Clara and Ventura.

Included is an updated WRT Info Sheet on these propositions. For more technical answers to your questions, see the FAQ’s link found on the California State Board of Equalization website: PROP 60/90.

Congratulations San Bernardino County, you’ve just helped make retirement for Southern California seniors more attractive while keeping it LOCAL!

Property Taxes are Due December 10th!

IMPORTANT REMINDER… and great reason to call your past clients to remind them that their property taxes are due!

image001

 Click below to pay online:

Los Angeles County  –  Orange County  –  Riverside County

San Bernardino County  –  San Diego County

What is in a Legal Description?

A Legal Description (also known as Land Description) consists of the written words which delineate a specific piece of real property. In the written transfer of real property, it is universally required that the instrument of conveyance (in California, a Grant Deed) include a written description of the property. Attached please find examples of how legal descriptions appear on title documents of record.

IMPORTANT TITLE TIP:

As title insurers, it is the Legal Description and the corresponding Assessor’s Parcel Number (APN) that we insure to, NOT the property’s address. The Post Master and Tax Assessor employ two different means of classifying property.

Click here for sample

Property Taxes are Due December 10th

IMPORTANT REMINDER… and great reason to call your past clients to remind them that their property taxes are due!

 Click below to pay online:

Los Angeles County  –  Orange County  –  Riverside County

San Bernardino County  –  San Diego County

Riverside County has adopted to participate in Prop 60/90

Proposition 60 allows transfers of base year values within the same county (intracounty). Proposition 90 allows transfers from one county to another county in California (intercounty) and it is the discretion of each county to authorize such transfers.

The County Assessors will require a copy of the tax bill from the other county and a copy of the applicant’s birth certificate to be included with the application. Also include a copy of the grant deed for the new purchase and a copy of the closing statements of both sale and purchase.

Summary of eligibility requirements:

  • The seller of the original residence, or a spouse residing with the seller, must be at least 55 years of age, as of the date that the original property is transferred.
  • The replacement property must be of equal or lesser “current market value” than the original.
  • The base year value of the original property cannot be transferred to the replacement dwelling until the original property is sold.
  • The replacement property must be purchased or newly constructed within two years (before or after) of the sale of the original property.
  • The owner must file an application within three years following the purchase date or new construction completion date of the replacement property.
  • This is a one-time only filing. Proposition 60/90 relief cannot be granted if the claimant, or spouse, was granted relief in the past.
  • The taxpayer is not eligible for the tax relief until they actually own AND occupy the replacement dwelling as their principle residence.

As of September 19, 2013, the following nine counties in California have an ordinance enabling the intercounty base year value transfer:

Alameda  – El Dorado – Los Angeles – Orange – San Diego

San Mateo – Santa Clara – Riverside – Ventura

Since the counties indicated above are subject to change, we recommend contacting the county to which you wish to move to verify eligibility. If you have any questions, the property tax office in Sacramento may be reached by calling: (916) 274-3350 or visit http://www.boe.ca.gov/proptaxes/faqs/propositions 60_90.htm

The information set forth herein is intended as an overview and should not be construed as legal, financial, or tax advice. Consult your tax professional

Property Tax Schedule

The following schedule is intended to serve as a general guide to property-owners.

July 1 Beginning of the fiscal year.
August  Treasurer-Tax Collector’s Office mails delinquent prior year secured notices.
August 31 UNSECURED TAX DELINQUENCY DEADLINE as of 5:00 p.m. A 10% penalty plus a $75.00 collection fee is added as of 5:00 p.m.
Sept 25 – Oct 5 The Treasurer-Tax Collector’s Office mails out original SECURED PROPERTY TAX bills.

In addition, SUPPLEMENTAL TAX bills are mailed throughout the year. 

October Unsecured Tax liens filed for unpaid unsecured accounts.
November 1 First SECURED PROPERTY TAX installment is due; delinquent UNSECURED accounts are charged additional penalties of 1.5% per month until paid.
December 10 FIRST INSTALLMENT payment deadline. A 10% penalty is added after the deadline.
January Treasurer-Tax Collector’s Office mails delinquent notice for unpaid FIRST INSTALLMENT and SUPPLEMENTAL SECURED INSTALLMENTS.
February 1 Second SECURED PROPERTY TAX installment due.
Feb – March Treasurer-Tax Collector mails delinquent prior year secured installment.
March – July UNSECURED PROPERTY TAX statements mailed.
April 10 Second SECURED PROPERTY TAX installment payment deadline. A 10% penalty plus $23.00 cost is added after the deadline.
May Treasurer-Tax Collector mails delinquent notices for any unpaid first and second installment taxes and SUPPLEMENTAL SECURED INSTALLMENTS
June 30 End of fiscal year.
July 1 Delinquent SECURED and SECURED SUPPLEMENTAL accounts are transferred to delinquent tax roll and additional penalties added at 1.5% per month on any unpaid tax amounts, plus $15.00 redemption fee.


Please note that the list above includes only the more significant dates and may not include all items or activities in the regular tax cycle.  If a delinquent date falls on a weekend or holiday, the delinquent date is the next business day

Southland Begins 2013 With Sales and Price Gains Vs. Year Earlier

As seen on DQNEWS.com

La Jolla, CA—Southern California’s housing market started 2013 with the highest January home sales in six years as sales to investors and cash buyers hovered near record levels and move-up activity remained relatively brisk. The median price paid for a Southland home dipped slightly from December, as it normally does, but jumped 23.5 percent above the year-ago level, a real estate information service reported.

A total of 16,058 new and resale houses and condos sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties last month. That was down 20.8 percent from 20,274 sales in December, and up 10.6 percent from 14,523 sales in January 2012, according to San Diego-based DataQuick.

A drop in sales from December to January is normal for the season, and on average sales have fallen 27.8 percent between those two months since 1988, when DataQuick’s statistics begin. Last month’s sales were the highest for the month of January since 18,128 homes sold in January 2007, though they were 8.8 percent below the January average of 17,609 sales. The low for January sales was 9,983 in 2008, while the high was 26,083 in 2004.

The median price paid for a home in the six-county Southland was $321,000 last month, down 0.6 percent from $323,000 in December and up 23.5 percent from $260,000 in January 2012. The December 2012 median was the highest for any month since the median was $330,000 in August 2008. The Southland median has increased year-over-year for ten consecutive months.

“This fledgling housing recovery has momentum. Already, price hikes have caused some to question whether it’s sustainable, whether it’s a ‘bubble.’ Let’s not forget, though, that we’re still climbing out of a deep hole from the housing downturn. Regional home sales remain sub-par and prices in many areas are at least 30 to 40 percent below their peaks. That’s not to say we don’t see risks. Sharp price gains can attract speculation, which could lead to unsustainable, short-term gains in certain submarkets. A lot of today’s housing demand is fueled not by spectacular job growth and soaring consumer confidence, but by super-low mortgage rates and unusually high levels of investor and cash purchases. Take away any one of those elements and it will matter,” said John Walsh, DataQuick president

Click here for entire article.

2013 3.8% tax information from NAR

Beginning January 1, 2013, a new 3.8 percent tax on some investment income
will take effect. Since this new tax will affect some real estate transactions, it is important for REALTORS® to clearly understand the tax and how it could impact your clients. It’s a complicated tax, so you won’t be able to predict how it will affect every buyer or seller.

To get you up to speed about this new tax legislation, the NATIONAL
ASSOCIATION OF REALTORS® has developed this informational brochure.
On the following pages, you’ll read examples of different scenarios in which this new tax — passed by Congress in 2010 with the intent of generating an estimated $210 billion to help fund President Barack Obama’s health care and Medicare overhaul plans — could be relevant to your clients.

Understand that this tax WILL NOT be imposed on all real estate transactions, a common misconception. Rather, when the legislation becomes effective in 2013, it may impose a 3.8% tax on some (but not all) income from interest, dividends, rents (less expenses) and capital gains (less capital losses). The tax will fall only on individuals with an adjusted gross income (AGI) above $200,000 and couples filing a joint return with more than $250,000 AGI.

Click here to download brochure or visit Realtors.org website for more information.

Property Tax Breaks for Seniors – Prop. 60/90

Under Proposition 90, California property owners who are 55 years or older may be able to qualify to transfer the assessed valued of their principal residence sold in County “A” to their new residence in County “B”.

The County Assessors will require a copy of the tax bill from the other county and a copy of the applicant’s birth certificate to be included with the application. Also include a copy of the grant deed for the new purchase and a copy of the closing statements of both sale and purchase.

Summary of eligibility requirements

  • The seller of the original residence, or a spouse residing with the seller, must be at least 55 years of age, as of the date that the original property is transferred.
  • The replacement property must be of equal or lesser “current market value” than the original.
  • The base year value of the original property cannot be transferred to the replacement dwelling until the original property is sold.
  • The replacement property must be purchased or newly constructed within two years (before or after) of the sale of the original property.
  • The owner must file an application within three years following the purchase date or new construction completion date of the replacement property.
  • This is a one-time only filing. Proposition 60/90 relief cannot be granted if the claimant, or spouse, was granted relief in the past.
  • Proposition 60/90 relief includes, but is not limited to: single family residences, condominiums, units in planned unit developments, cooperative housing, corporation units or lots, community apartment units, mobile homes subject to local real property tax, and owners’ living premises which are a portion of a larger structure.
  • The taxpayer is not eligible for the tax relief until they actually own AND occupy the replacement dwelling as their principle residence.

Alameda (415) 272-3755  San Mateo (415) 363-4500  Santa Clara (408) 299-4347

Orange (714) 834-2746  Los Angeles (213) 974-3101 Ventura (805) 654-2181

San Diego (619) 531-5507

It is essential that you call the co-operating County in question, to verify that they are currently accepting the value transfer under Proposition 90, and what their requirements are. If you have any questions, the property tax office in Sacramento for all counties in California may be reached by calling: (916) 445-4982 or click here for frequently asked questions.

The information set forth herein is intended as an overview and should not be construed as legal, financial, or tax advice. Consult your tax professional.