A California buyer's agent is reviewing comparable sales data and notices that the county recorder's office lists different documentary transfer tax amounts for similar properties in the same city. Some properties show both a county and city transfer tax, while others show only the county tax. What does this difference indicate about the sale verification process?
Correct Answer
B) Properties showing both taxes are located in a city that has enacted its own documentary transfer tax in addition to the standard California county rate
In California, the county documentary transfer tax of $1.10 per $1,000 applies statewide under Revenue & Taxation Code §11911. Certain California cities (such as Los Angeles, San Francisco, Oakland, and others) have enacted additional city transfer taxes on top of the county rate. Properties in cities without their own transfer tax show only the county amount, while properties in cities with a local transfer tax show both amounts.
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Previous Question
A California real estate agent is preparing a CMA for a property that borders a newly expanded CEQA-designated habitat area. One comparable also borders the designation, which restricts development on adjacent land. How should the agent address this environmental factor when analyzing the comparable?
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When conducting a sales comparison analysis in California, an appraiser discovers that the subject property has an Accessory Dwelling Unit (ADU) that was built under California's recent ADU legislation. How should the appraiser handle this feature?