A California property sells for $650,000, with the buyer assuming an existing loan of $200,000. The county documentary transfer tax at $1.10 per $1,000 is calculated on the amount of consideration excluding the assumed loan. What is the documentary transfer tax?
Correct Answer
C) $495
Step 1: When the buyer assumes an existing loan, the documentary transfer tax is calculated on the equity portion (sale price minus the assumed loan). Step 2: Taxable amount = $650,000 - $200,000 = $450,000. Step 3: Tax = $450,000 ÷ $1,000 × $1.10 = 450 × $1.10 = $495.
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Under Proposition 13, certain transfers are exempt from reassessment. Which of the following transfers is NOT exempt and WOULD trigger a full reassessment of the property's value?
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