Under California law, what is the consequence when a property buyer fails to file the Preliminary Change of Ownership Report (PCOR) at the time the deed is recorded?
Correct Answer
A) An extra $20 recording fee applies, and not returning the assessor's Change in Ownership Statement within 90 days brings a penalty of $100 or 10% of the new taxes, whichever is greater
The PCOR is handed to the recorder with the deed, but filing it is not a condition of recordation. If the deed arrives without one, the recorder records it anyway and collects an additional $20 fee. The assessor may then mail the transferee a Change in Ownership Statement under Revenue and Taxation Code 480, which must be filed within 90 days of that written request. Failure to return it draws a penalty under Revenue and Taxation Code 482 of $100 or 10% of the taxes applicable to the new base year value, whichever is greater, capped at $5,000 for property eligible for the homeowners' exemption and $20,000 for other property.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The chain of title is the sequential history of all transfers of ownership for a specific property, from the original source (typically a government patent or grant) to the present owner. An unbroken chain is essential for marketable title.
The closing process, also called settlement, is the final step in a real estate transaction where documents are signed, funds are disbursed, and title is officially transferred from the seller to the buyer.
Constructive notice is the legal presumption that a person has knowledge of information that is available through public records or visible inspection of the property, regardless of whether they actually knew about it.
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