Page 15 - California Home Sellers Handbook

Property Tax Relief on Replacement Dwellings for Seniors

When a sale or transfer of a property is recorded with the county recorder it is the responsibility of the
new owner to complete the Preliminary Change of Ownership (PCOR). Buyers customarily complete
this form in escrow. The PCOR is a two page questionnaire requesting information on the property,
principals involved in the transfer, type of transfer, purchase price and terms of sale, if applicable, and
other such pertinent data. One of the many reasons the
county assessor needs this information is to verify the
eligibility for tax relief under Revenue and Taxation Code
Section 69.5.

Originally passed as Proposition 60 and 90 these
constitutional tax initiatives provide tax relief by
preventing property reassessment when a person, age 55
or older, sells his/her existing residence and purchases
or constructs a replacement residence of equal or lesser
value than the original property.

How Do These Tax Initiatives Work? 100 % or less of the market value of the original
When a person, age 55 or older, purchases or property if a replacement property were purchased
constructs a new residence, it is not reassessed or newly constructed before the sale of the original
if he/she qualifies. The Assessor transfers the property, or
factored base value of the original property located
in the same County. 105% or less of the market value of the original
property if a replacement property were purchased
Later, Proposition 90 enabled this to be modified or newly constructed within the first year after the
by local ordinance. The homeowner is still eligible if sale of the original property, or
moving to a County that has adopted a Proposition
90 ordinance. 110% or less of the market value of the original
property if a replacement property were purchased
The meaning of equal or lesser value depends on or newly constructed within the second year after
when you purchase the replacement property. In the sale of the original property
general, equal or lesser value means:
Counties which have adopted
Effective 12.6.18 LE a Proposition 90 Ordinance
Old Republic Title is providing this information as a free customer service and makes no
warranties or representations as to its accuracy. Alameda Orange
Old Republic Title strongly recommends that consumers confer with their title insurer as
underwriting requirements vary among companies and further, obtain guidance and advice Santa Clara San Mateo
from qualified professionals, including attorneys specializing in Real Property, Trusts and/or
Title Insurance to get more detailed, and current, information as to any particular situation
affecting them. San Diego Ventura
Source: http://www.boe.ca.gov/
*https://www.edcgov.us/Government/Assessor/Documents/PROP90_Expiration.pdf
Los Angeles Tuolumne
Riverside San Bernardino

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