A California buyer purchases a newly built home in a subdivision that has supplemental property taxes. What triggers the supplemental assessment?
Correct Answer
C) A change of ownership or completion of new construction triggers a supplemental assessment for the difference between old and new assessed values
Under California Revenue and Taxation Code, a supplemental assessment is triggered by a change of ownership or completion of new construction. It covers the difference between the prior assessed value and the new assessed value, prorated for the remaining portion of the fiscal year.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Discount points are upfront fees paid to a lender at closing to reduce (buy down) the interest rate on a mortgage loan. One point equals 1% of the loan amount and typically reduces the rate by approximately 0.25%.
An FHA loan is a mortgage insured by the Federal Housing Administration that allows lower down payments and credit scores than conventional loans. It is designed to help first-time homebuyers and borrowers with limited resources.
A fixed-rate mortgage has an interest rate that remains constant for the entire term of the loan, resulting in equal monthly principal and interest payments throughout the life of the mortgage.
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