Under Proposition 19, which conditions must a qualifying California homeowner meet to transfer their existing Prop 13 base year value to a replacement home in a different county?
Correct Answer
B) The homeowner must be over age 55 or severely disabled, purchase the replacement home within two years, and occupy it as a primary residence; if the replacement costs more, taxes are assessed on the difference
Under Proposition 19 (Article XIII A, §2.1 of the California Constitution), eligible homeowners — those over age 55, severely disabled, or victims of a wildfire or natural disaster — may transfer their Prop 13 base year value to a replacement primary residence anywhere in California. The replacement must be purchased within two years of the sale of the original home. If the replacement property's full cash value exceeds the original home's value, the excess amount is added to the transferred base year value. This benefit may be used up to three times for homeowners over 55 or severely disabled.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A special warranty deed guarantees that the grantor has not caused any title defects during their period of ownership, but does not warrant against defects that existed before the grantor acquired the property.
Title insurance is a policy that protects the insured party against financial loss from defects in title that were not discovered during the title search. Unlike other insurance, it covers past events rather than future risks.
A title search is an examination of public records to determine the history of ownership, liens, encumbrances, and other interests affecting a property. It verifies that the seller has the legal right to transfer the property.
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In a jurisdiction where a later purchaser must both lack notice and record before the earlier claimant records, what kind of recording act applies?
- → A buyer records a deed at the county recorder's office. What is the primary purpose of recording?
- → A buyer drives past the property and sees someone other than the seller living there and maintaining the yard. This observation should put the buyer on what type of notice?
- → In a covered purchase transaction, the borrower receives a final form showing the loan terms, cash to close, and settlement charges shortly before consummation. What form is this?
- → Along with the signed offer, Quinn Brooks delivers a check to demonstrate serious intent to complete the transaction if the offer is accepted. What is this deposit called?
- → On a settlement statement, the buyer's earnest money reduces the remaining cash needed to close. How is that item characterized?
- → On a settlement statement, an item increases the buyer's amount due at closing. How is that item characterized?
- → On the seller's settlement statement, the purchase price of $400,000 appears as what?
- → At closing, the purchase price of $350,000 appears on the buyer's side of the settlement statement. Is this amount a debit or a credit to the buyer?
- → Under TRID rules, the lender must deliver the Closing Disclosure to the borrower at least how many business days before loan consummation?
- → In an escrow closing, the escrow agent discovers that the seller has not yet provided the signed deed. What should the escrow agent do?
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