Source: http://www.vivaescrow.com/for-your-convenience/faq/documentary-transfer-tax-exemptions
Timestamp: 2014-12-20 16:29:05
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Viva EscrowDocumentary Transfer Tax Exemptions Updated Oct 29, 2014
California Documentary Transfer Tax Calculator As noted in my previous article regarding documentary transfer taxes, the taxes collected are a nice, hefty revenue source for counties and cities throughout California so they are loath to give away the right to collect it without some explanation. The Revenue and Taxation Code does allow for “exemptions” to the payment of this tax, as long as the exemption is allowed by the Code.
When claiming the exemption, the transfer document (deed or quitclaim deed) must have one of the following accepted recitals on it (the non-bolded phrase):
“This conveyance transfers an interest into or out of a Living Trust, R & T 11911.”
All Deeds?
Signatures Memo
Not required- spousal and into/out of trust. Must show proof of same parties/same interest
Grantor or Grantee only
County does not question signature
Gift transaction MUST have original signature and CANNOT be an agent
Grantor/Grantee or Agent
Title Companies excluded as valid agents
Grantor and Grantee or Title Co as agent
County does not question signature except on Company to Company transactions
Required on all deeds if there is no PCOR
Feel free to access our transfer tax calculator program (see link under our title heading). If you should have questions on whether your transaction is or is not exempt, please call us at # (626) 304-3592 so that we may clarify any questions you may have.
Your email address will not be published. Required fields are marked *	Name * Email * Website Comment You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong> Monica December 16, 2014 at 2:56 am	Hello,
I am about to refinance a condo(investment property) in San Francisco and will need to have my boyfriend co-sign on the new loan with me. I currently hold title alone. The mortgage company requires that he be added to title. Which exemption should I use to avoid transfer tax? Thank you so much in advance for any help you can provide!
Juliana Tu December 16, 2014 at 2:48 pm	There really is not an appropriate transfer tax exemption for your case wherein you are adding a boyfriend on in order to qualify for a refinance. The closest would be: “This is a bonafide gift and the grantor received nothing in return, R & T 11911.”
Your name would still remain as the owner, so the County should be able to accept this, but one is never certain where the county government agencies are concerned. On the Preliminary Change of Ownership form you would check box I in Part 1 and then just sign on page 2 under “Certification”
I highly recommend that you ask the Title Company/Escrow Company who is handling the refinance for you to prepare the documents to add your boyfriend on so that it is done correctly.
Reine Silverlight December 15, 2014 at 8:55 am	My sister and I purchased a home (this was in 1999) and she then quit claimed her interest in the property to me (2002) after we both married. She and her husband purchased another home, and I added my husband to the deed so we could refinance the property where we remained. At that time, the property was (to my surprise) re assessed + $125 K. When I contacted the assessor’s office, they stated that even though no money or any other consideration had been given to me, the new, higher tax valuation would apply to me at only a 50% rate as this was a transfer between sisters, not between a parent and child. The assumption of new tax assessment was a real burden that we have struggled with. I understand from reading these comments that there is no guarantee in how the property might be assessed or re assessed after any transfer, but now have to wonder if we worded this correctly, or have any standing to appeal this, or, if any kind of appeal is even possible so long after the fact? I would have to research the filings to see just how it was worded, but the intent was as a complete “gift.”
Juliana Tu December 15, 2014 at 1:35 pm	I don’t know if the quitclaim deed had the correct verbiage typed in: “This is a bonafide gift and the Grantor received no consideration in return, R&T 11911”. This verbiage denotes to the County Recorder and County Assessor that no money transferred hands. In addition, a Preliminary Change of Ownership form had to be completed and attached to the deed and on it, it asks if property valuation should be exempt and gives you various allowable reasons for exemptions.
Given all this, California’s Revenue and Taxation Code does not actually give an exemption between siblings for property transfers. The only thing that comes close is the “bonafide gift” exclusion. You can appeal the decision through the County Tax Assessor’s office. It doesn’t mean that they will grant you the exemption, but there is no harm in trying. Please give the County Assessor a call and see if you can fill out the necessary forms. You can also go on line and get more information from them. Individual County Assessors have their own website that has valuable information in it.
ley December 6, 2014 at 1:28 am	Hello Juliana,
I am a single woman and owns a small apartment building in California. I want to transfer it to my mother. Should I use Grant Deed or Quitclaim Deed? Can I use bona fide gift exemption to avoid tax? Many thanks.
Juliana Tu December 7, 2014 at 11:34 pm	I would use the Grant Deed form to transfer ownership to your mother. And yes, you can put the following verbiage on the deed: “This is a bonafide gift transfer between parent and children , and there is no consideration involved, R&T 11911”. Be sure you complete the preliminary change of ownership form and check box C in Part 1.
One word of caution: it is always up to the County Recorder and the County Tax Assessor to accept the exemption for each particular case and not charge the transfer tax or re-assess the property. We recommend how it is best done, but at the end it is up to the government agencies to make the final decision. If they do not accept, then you will have to petition them. There is never any guarantee that they will accept the exemptions and they may require some sort of proof that you qualify. You won’t know until you have the documents sent for recordation. They will contact you if they need more information from you to make a decision. If you have any questions, you should bring them up directly with these government agencies.
Craig December 4, 2014 at 11:42 am	I originally took title as myself, a Single Man. I have since married and I want to add my wife to title. I was told it should be Tax Exempt, but I am trying to figure out which exemption I am supposed to use. Please help. Thanks!
Juliana Tu December 4, 2014 at 2:26 pm	The transfer tax exemption you would use is:
“This is a bonafide gift, addition of a spouse after marriage, and the grantor received nothing in return, R & T 11911.” (I revised it slightly from its original format to explain why it is a bonafide gift).
Type this on the conveyance deed adding your spouse and be sure you check box A in Part 1 of the preliminary change of ownership form.
JESSE CEBA November 19, 2014 at 6:25 pm	HI ! I AM DOING A GRANT DEED TO TRANFER JOINT TENANCY (ORIGINAL) TO SOLE PROPRIETORSHIP TO QUALIFY FOR A REFINANCE SHOULD I USE THE WORDS (THIS IS A BONAFIDE GIFT AND THE GRANTOR RECEIVED NOTHING IN RETURN , R & T 11911) IS A COMMERCIAL BULDING AND HOW DO I FILL THE BOE-502-A AND DOCUMENTARY TRANSFER TAX AFFIDAVIT ” sincerely thank “
Juliana Tu November 19, 2014 at 7:01 pm	You did not mention how the property ownership vests now, who owns the property with you that you are asking this person to sign off so that you own it solely in order to do the refinance. However, you can put the exemption on the Deed as “This is a bonafide gift and the grantor received nothing in return, R&T 11911”. It is always up to the County Recorder and the County Tax Assessor to accept the exemption for each particular case and not charge the transfer tax or re-assess the property. We recommend how it is best done, but at the end it is up to the government agencies to make the final decision. If they do not accept, then you will have to petition them. There is never any guarantee that they will accept the exemptions and they may require some sort of proof that you qualify. You won’t know until you have the documents sent for recordation. They will contact you if they need more information from you to make a decision.
The Transfer Tax affidavit is required in some counties when you are asking to be exempt from transfer tax. You would check whichever box most closely matches why you believe there should be an exemption. Or you can write in your explanation in “Other” – for instance, is this a transfer between siblings, or a transfer between spouse, etc. As to the Preliminary Change of Ownership form (the 502A), you will have to complete all the information on the top and then in Part 1 – Transfer Information- check the box that most applies to your circumstance. Since you say this is a gift, you can mark that in Part 2, complete Part 4 and then sign in the Certification portion.
Finally, if you are doing a refinance, may I suggest that you contact your Escrow Officer and have them handle or look over the forms for you as it should be part of the refinance escrow and you do not want to do this wrong. Ask them the questions and they should be able to help you.
Meynardo Sanchez November 18, 2014 at 7:43 am	If the property was deeded to the husband as his sole and separate property during their marriage for the purpose of obtaining a favorable credit score to refinance the property, in reconveying it back to both husband and wife, et ux, as joint tenants with the right of survivorship, which R&T code applies to avoid the transfer tax?
Juliana Tu November 18, 2014 at 5:04 pm	We are a Settlement Services Company in California. My answers below are predicated on the assumption that the property is in the State of California only. Other states have different government regulations that we cannot comment on.
A transfer between spouses, to add a spouse, can be exempt from transfer tax payment and from re-assessment of property taxes. You must put the exemption verbiage on the conveyance deed as follows:
“This is a bonafide gift, addition of a spouse, and the grantor received nothing in return, R & T 11911.”
You must also check box 1 of Part 1 of the preliminary change of ownership form in order for the government agencies to be made aware of this.
Mohammed November 10, 2014 at 11:32 pm	I own a house and want to change the ownership to my daughter, is it subject to documentary tax and on the supplement form should I mark it as a gift any any tax consequences to that thank you.
Juliana Tu November 11, 2014 at 5:07 pm	Let me first qualify my response to your question by stating that we are a settlement services/escrow company in California, and most of our transactions are for handling properties in this state. Other states have different laws, rules, regulations and standards of practices that I cannot comment on. If you are from a state other than California, you should ask your question of closing professionals or closing attorneys in your state.
You would use a Grant Deed in California to transfer ownership of a property to another person. In the case of a family transfer from parent to child, you can claim the transfer tax exclusion by typing on the Grant Deed the following verbiage:
“This is a bonafide gift, transfer between parent and child, and the grantor received no consideration in return, R & T 11911.”
You would also check Part 1 C. box on the preliminary change of ownership form to show the County Assessor that this is a parent child transfer to that there would be no re-assessment of property taxes.
Marilyn Wallar November 1, 2014 at 3:36 pm	My ex-husband and I own a rental property in Orange County. We want to remain partners and change the title from our previous trust into joint tenancy (with right of survivorship). 1. For this transfer, on the Preliminary Change of Ownership Report, is this the proper item box to check? “This is a transfer of property to/from a trust that may be revoked by the creator/grantor/trustor who is also a joint tenant, and which names the other joint tenant(s) as beneficiaries when the creator/grantor/trustor dies.
2. On the Quitclaim Deed, we would list the previous trust the grantor…and the grantee as, “(his name), a single individual, and (my name), a single individual, as joint tenants.” Correct ?
3. And finally, what “exemption” statement should we add to the Quitclaim Deed?
Thank you so much for your advice on this. Your blog is most informative!
Juliana Tu November 2, 2014 at 3:51 pm	Hello, thank you for visiting our Viva Escrow website and for leaving a question/comment.
1.	On the preliminary change of ownership form you would check box G and K-1. Then sign on page 2 under “certifications” on the bottom.
2.	On the quitclaim deed the Grantees are “his name, an unmarried man and your name, an unmarried woman, as joint tenants”. Since you are now divorced you are no longer a “single” person but an “unmarried” person.
3.	On the Quitclaim deed you would put this exemption: “This conveyance changes the manner in which title is held, grantor(s) and grantee(s) remain the same and continue to hold the same proportionate interest, R & T 11911”
Rav October 27, 2014 at 8:09 pm	Hi Juliana,
Thanks for this great information! I had a question regarding my situation. I live in California and I bought a condo (rental) in Vegas. I wanted to add my wife’s brother-in-law onto the property. I contacted a company to allow me to add him to the deed, but they quoted me for more than $500 due to Transfer Taxes. How can I avoid these taxes? What other options are there for me besides opening a Living Trust?
Juliana Tu October 28, 2014 at 1:36 pm	Regrettably, we handle only properties in California. Other states, including Nevada, have different laws, rules, regulations and standards of practices that I cannot comment on. You will need to contact closing professionals or closing attorneys in Nevada to answer your questions regarding Nevada’s transfer taxes. Have you tried looking it up Nevada Transfer Tax guidelines on line? Perhaps there are certain exemptions that you could qualify for. I am so sorry that we are unable to help.
John M October 26, 2014 at 8:56 pm	I am not sure that #4 is clear. “Conveyances transferring interests into or out of a Living Trust. `This conveyance transfers an interest into or out of a Living Trust, R & T 11930.’”
I think that should be “Conveyances transferring interests into or out of a Living Trust” due to a death.
For transfers into a newly formed revocable trust, I was told the right language was “This conveyance transfers the grantor’s interest into his or her revocable trust, R & T 11911.”
John M October 26, 2014 at 9:15 pm	A follow up question, which I would like to hear your thoughts on. For a transfer into a grantor’s revocable living trust, I understand I may want to include the following language:
[X]	“This conveyance transfers the grantor’s interest into his or her revocable trust, R & T 11911″.
[X]	Excluded from Reappraisal Under Proposition 13, California Constitution Article 13A § 1, et seq.
[X]	This conveyance does not constitute a “change of ownership”, R & T 62.
Do all of these seem right to include?
Juliana Tu October 27, 2014 at 6:12 pm	You are correct. The exemption for transfer in and out of a living trust is under R&T 11911. We will correct that on our website. Our experience is that even if the language for the exemption typed onto the deed differs a little, the County Recorder will still accept it. As to the additional language that you wish to put onto the deed, I have not seen the “exclusion from reappraisal” or the “change of ownership” language in deeds. Normally, if you attach a correctly completed preliminary change of ownership form, then it will alert the County Assessor’s office that the transfer is exempt from re-appraisal and it is not a real change of ownership.
TT October 23, 2014 at 8:45 am	Hi Juliana,
Thank you for posting this. It’s very helpful. I’m hoping you can give some insight for my situation.
In my situation, my mom’s house is in her Revocable Trust, where she’s the trustee and i’m the co-trustee. She’s the beneficiary, but if she pass a way it will to me. At this time, we want to transfer it completely to me. We’re in Santa Clara County.
Would it be sufficient to put in the language you suggested “This is a bonafide gift and the grantor received nothing in return, R & T 11911”? Should I also include something to the effect that it’s a parent to child transaction as well? if yes, can you give me an example?
Also in this grant deed to transfer the house to me , do I need to sign it as a co-trustee or is her signature as a trustee enough?
Juliana Tu October 23, 2014 at 12:00 pm	You can use the following exemption verbiage on the Deed: “This is a bonafide gift, transfer between parent and child, and there is no consideration involved, R&T 11911”.
If you are a Co-Trustee, then you will need to sign as well as your Mother. If you are a Successor Trustee and your mother is the only Trustee, then only she will need to sign. It all depends on how your Trust is written and who have been designated as the Trustees of the Trust at this time.
vanessa October 17, 2014 at 7:54 am	Hi,
My husband and I just closed escrow and because I don’t have good credit, I was not allowed on the loan and he is on title alone as married man as his sole and separate property. Now that the loan is closed, we want to add me on and vest as husband and wife as community property with right of survivorship. My questions are: Should we use a grant deed or an interspousal deed? What is the R&T code and verbiage for this type of transaction? In browsing your prior replies, I think “This conveyance confirms the addition of a spouse as community property interest, and there is no consideration involved, R&T 11911.” will work… but then I also saw ““This conveyance confirms a community property interest, which was purchased with Community Property Funds, R & T 11911.” Please let me know if either of these will work or if there is different verbiage I should use. And where do i type the verbiage and r&t code on the form? thank you in advance.
Juliana Tu October 17, 2014 at 10:42 am	We are a Settlement Services Company in California. My answers below are predicated on the assumption that the property is in the State of California only. Other states have different government regulations that we cannot comment on.
The form that you can use is the Grant Deed. That is the most common transfer of ownership form used in California. You can use either of the two Revenue and Taxation Code verbiage as per below to be exempt from transfer tax : “This conveyance confirms a community property interest, which was purchased with Community Property Funds, R & T 11911.” Or “This conveyance confirms the addition of a spouse as community property interest, and there is no consideration involved,R & T 11911.” Either one works.
You would type this verbiage below the legal description portion and above the signature lines.
Please be sure that you complete a Preliminary Change of Ownership form also.
vanessa October 17, 2014 at 7:46 am	Hello, my husband and I just purchased a home under a VA loan. My credit is bad so they had him take title as a married man as his sole and separate property. Now that escrow closed I want to add my name on to reflect husband and wife as community property with right of survivorship. I am planning on using a grant deed. is this the right form? (or should i use an interspousal) and what is the r&t code and verbiage for this?
Lee October 15, 2014 at 1:17 pm	Hello,
We are considering the option of transferring our house ( Riverside, CA) under a family trust ( revocable trust) . We’ve purchased Nolo suite and generated a living trust document. It is printed and ready to sign (I understood it needs to be notarized). However, I am not sure what to do once this document gets singed?! I’ve searched online and couldn’t find much about this process…
Next, I looked into the actual property transfer process… Below are the steps I found online:
1.Obtain a California grant deed from a local office supply store or your county recorder’s office. – I’ve called the County Recorder’s office and they couldn’t provide detailed instructions… not even for what type of document/grant deed to use… Here is a list of downloadable forms http://www.asrclkrec.com/Assessor/AssessorServices/AssessorMapChanges/tabid/370/fid/218/Default.aspx
2.Complete the top line of the deed. As the current owner of the house, list yourself and any other co-owners as the grantors. Include your full legal name and address.
3.Indicate the grantee on the second line. The grantee is the legal name of the trust.
4.Enter the trustees’ names and addresses. You can name yourself as the trustee, if you wish to maintain control of the house. Write the names within the brackets on the deed. For example, “[name of the trustee(s)], Trustee(s) of the [name of the trust] dated [date of the trust].”
5.Write the legal description of the property. In the middle section of the deed, you are asked to include a paragraph describing the property. Copy the description found on your current deed.
6.Sign the deed. You and any other current owners must sign the deed in front of a notary public.
7.Prepare a “Preliminary Change of Ownership Report” found on the county tax assessor’s website. The report is submitted to the county record along with your new deed. A copy of the report is sent to the tax assessor to determine if a property tax reassessment is necessary ( ALREADY CALLED COUNTY TO CONFIRM REASSESSMENT WON’T HAPPEN).
8.Check with your title insurance company. Your company may terminate the policy if you transfer the property because your trustee may not be considered a successor in interest. If the policy is cancelled, the trustee must purchase a new policy or opt to go without.
9.File the deed at your county recorder’s office. Filing fees to record deeds vary among counties. Within a few weeks, you will receive the deed you recorded in the mail.
- what do I do with the notarized trust document? Just hold on to it? Send it to county with the Grant Deed (GD) & PCOR?
- are steps above correct?
- are the GD & PCOR all the forms needed?
Juliana Tu October 15, 2014 at 6:45 pm	We always caution the consumer to get in touch with a document preparation company who can prepare the documents correctly. Some of them even send it out for you to be recorded. Here are a few companies that may be able to help you: The Document Center – #(818)541-0901, RecordMyDocs.com – #(714)482-2077, or Doc Star Services – #(855) 362-7827. Explain what you need and they can help you. Their costs do vary so please call them first. If your document is prepared correctly it will save you a lot of problems and issues in the future, especially if you have never done this before.
The steps that you described do look correct. Be sure you put the correct exemption request right below the legal description of the property on the deed. In your case it would be :
“This conveyance transfers an interest into or a Living Trust, R & T 11930.”
Also on the preliminary change of ownership form, check K.#1 on Part 1 and sign on page 2 at the bottom under “Certification
If you have already done the Deed and the Preliminary Change of Ownership form then you should send it to the County Recorder for recordation along with the required fee. Or, you can go to the Recorder’s office with both forms and record it personally, so that it does not get lost in the mail. The County Recorder does not guarantee that a document that is mailed in gets recorded right away. You can find the address for the County Recorder by searching on Google. Hope this helps.
debra October 7, 2014 at 11:44 am	my mother and father were trustees of their family trust that only held their home in San Diego. My father died 10 years ago and my mother made a new grant deed listing herself and me as trustees. My mother has now died and I am the sole trustee and beneficiary. I know I need to send affidavit of death to take her name off deed. do I also need to send a preliminary change of ownership report? also, I would like to transfer the house into my family trust which has me and my husband as trustees. should I file a grant deed to take it out of mother’s trust name and into my name and then file another grant deed to put it into my family trust? do I need a preliminary change of ownership report for both times? or could this be “section 1, item K-1 transfer of property to/from a revocable trust? I dont plan on selling the property but will rent it out. Do you think it will be reassessed? thank you..
Juliana Tu October 7, 2014 at 1:45 pm	I am not sure what the ownership looks like at this time, after your mother did a new deed putting herself and you as Trustees. However, this is what I would recommend that you do:
1.	An Affidavit of death of Trustee to establish her death, leaving you as sole Trustee. A Preliminary change of ownership report (PCOR) is required. There will possible be a re-assessment of property taxes. 2.	A deed from you as Surviving Trustee to yourself and your husband as husband and wife. PCOR is required. Use exemption that this is a “bonafide gift, transfer from revocable Trust to individuals”. No re-assessment of property taxes.
3.	A deed from you and your husband, as husband and wife, to your Family Trust. PCOR is required. Use exemption that this is a “transfer from individual to a revocable trust”. No re-assessment of property taxes.
Most important, please contact the Trust or Estate Attorneys, particularly for your mother’s estate/trust, to go over the financial consequences of the transfers. As a settlement services company we are not allowed to give financial or legal advice, and before you do these transfers you need to make sure about any tax consequences.
JIM MARIANI October 3, 2014 at 9:52 am	A BROTHER IS BUYING OUT ANOTHER BROTHER , IN LIKE OR KIND, ON 2 PIECES OF PROPERTY FROM THEIR PARENTS’ TRUST…WHAT IS THE R&T CODE # FOR EXEMPTION/EXCLUSION FROM REAPPRAISAL PURPOSES?
Juliana Tu October 3, 2014 at 11:14 am	I am not certain whether the properties are in California, but we only handle the sale of properties in the State of California. The Assessors have the right to re-asses the property anytime there is an ownership transfer, unless you qualify for one of their exemptions. At this time there is no exemption from brother to brother transfer, particularly if there is a purchase involved. I recommend that you call the County Assessor for any further questions. Regretfully, it will be up to this government agency to make the determination!
Jessica October 2, 2014 at 5:03 pm	Hello:
I have legally changed my name via court order, after my divorce. I am now filling out my Grant Deed form. Your article and the comment below have been invaluable in filling out the following “New Name, an unmarried woman, who acquired title under the former name of Old Name, a married woman, as her sole and separate property, hereby grants to: New Name, an unmarried woman.” Now, I am wondering where I should put the exception. Does it go under the “FOR A VALUABLE CONSIDERATION” section? I know you said the wording was “This conveyance confirms a change of name, and the grantor and grantee are the same party, R & T 11911.” I am just not sure where to put it.
Juliana Tu October 2, 2014 at 6:02 pm	The Transfer Tax Exemption clause will go below the legal description / property address portion, which is around the middle of the page, and above the signature line.
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Bob Smith September 18, 2014 at 10:21 am	Part of my divorce decree, I am to take complete financial responsibility and ownership of the condo. I am in the process of filling out the quit claim deed and am a bit confused as to how to word my ex-wife and myself as the disclaiming party (grantor). I get I have to put my ex-wife’s name and my name under the part that reads “For a valuable consideration, receipt of which is hereby acknowledged”. But I’m confused as to or what to put following our names. On the original title it was granted to “myname and exwifesname, husband and wife, as joint tenants”. But since we are legally divorced now, she does not live there but I do, and I am remarried since. Can you help me with the correct wording?
Juliana Tu September 18, 2014 at 5:07 pm	This is rather complicated because you are now married. But I think to make it clear, you would do the Quitclaim Deed as follows: “Jane Doe, an unmarried woman, who acquired title as Jane Doe, a married woman” hereby quitclaims to “John Doe”. I wouldn’t put your vesting behind the “John Doe” because it would complicate matters. Afterwards you can do a second Deed from “John Doe” to “John Doe, a Married man as his sole and separate property” (in which case you will need your new wife to sign a Quitclaim Deed), or from “John Doe” to “John Doe and Sally Doe, husband and wife as Joint Tenants”. So you would do several Deeds, one to get your ex-wife out of the property, one to correct your vesting, and one to have your new wife sign off any interest if you are going to claim this is as your separate property.
Homeowner September 15, 2014 at 5:53 pm	I hold my house as a single woman my sole property. I want to add my nephew as a joint tenant. He will pay me nothing this is a gift. I will still remain on the property but will now hold as “joint tenants with right of survivorship” My question is will I get taxed for this transfer or is this exempt from being taxes. I own property in LA county, California
Juliana Tu September 15, 2014 at 6:53 pm	I am not sure what taxes you are talking about – the documentary transfer tax, the property tax re-assessment, or the income tax. We are a settlement services company and not in a position to determine if your particular transfer case will incur taxes.
It is always up to the County Recorder and the County Tax Assessor to accept the exemption for each particular case and not charge the transfer tax or re-assess the property. We can only recommend what you should type on the Grant Deed and how to complete the preliminary change of ownership form. At the end it is up to the government agencies to make the final decision. If they do not accept, then you will have to petition them. There is never any guarantee that they will accept the exemptions and they may require some sort of proof that you qualify. You won’t know until you have the documents sent for recordation. They will contact you if they need more information from you to make a decision. I recommend that you call the government agencies directly with your questions.
When you type the Grant Deed the wording for transfer tax exemption on the deed is “This is a bonafide gift and the Grantor received nothing in return, R&T 11911”. On the preliminary change of ownership form there is no box that you can check to request an exemption from re-assessment of taxes due to a transfer from aunt to nephew. So you will probably need to write on the form that this is a gift and there was no money involved and you will remain as the one of the owners of the property.
If your question was whether there will be income taxes due on this transfer, I would not be able to answer that particular question. You will need to contact your CPA. I hope this helps!
Richard R September 4, 2014 at 3:47 pm	The home is in California
Richard R September 4, 2014 at 3:47 pm	My mother, who has recently passed away, has a home in a living trust. My brother and myself are 50/50 heirs of her estate. I wish to have the home put into my name and pay off my brother. Would there be a transfer tax? Would it be at the same annual tax rate, on the home, as my mother was? Thanks.
Juliana Tu September 4, 2014 at 4:33 pm	In California, if you are purchasing real property or a partial interest in it, the Revenue and Taxation Code calls for the payment of transfer tax on that portion which is being purchased, and a reassessment of the property tax to current property value at transfer.
When the Trustee of the Trust deeds the property from your mother’s Trust to you and your brother, pursuant to the terms and conditions of the Trust, then it is an inheritance gift and there is no transfer tax or reassessment to that particular transfer. However, when you go and purchase your brother out, then both tax would apply.
Business in Annapolis August 19, 2014 at 6:18 pm	Hello There. I found your blog using msn. This is a really well written article.
Dennis August 15, 2014 at 10:04 am	I recently purchased a home in Ventura County and half of the proceeds was from my mom who sold her home to join my wife and I at the new home. I wish to put my mom on title as 50% owner for her contribution and also to avoid gift tax. The loan is in my name. Do you see any concerns with what I’m trying to achieve? Do I qualify for a tax exemption when I transfer my mom to the title?
Juliana Tu August 16, 2014 at 6:43 pm	As you are adding her name, not taking out a name, there should be no problem with the Lender.
You can apply for transfer tax exemption for her 50% by use of the following exemption: “This is a bonafide gift, transfer between child and parent, and the grantor received nothing in return, R & T 11911.” This is the nearest exemption that you might be able to use to exempt you’re the transfer from transfer tax and from re-assessment of property. However, it is always up to the County Recorder and the County Tax Assessor to accept the exemption for each particular case. We recommend how it is best done, but at the end it is up to the government agencies to make the final decision. If they do not accept, then you will have to petition them. There is never any guarantee that they will accept the exemptions and they may require some sort of proof that you qualify. You won’t know until you have the documents sent for recordation. They will contact you if they need more information from you to make a decision.
Susan August 11, 2014 at 4:13 pm	Going thru a divorce in CA and applying to have my maiden name restored. I was the sole successor trustee of my parents’ trust and inherited the home I live in from their trust in my married name as my sole and separate property. My grant deed reads (made up name):
“Susan J. Smith, sole successor trustee of the survivor’s trust of the Father’s name and Mother’s name Revocable Family Trust dated June 1, 1996″
“Susan J. Smith, a married woman as her sole and separate property”…
Once the divorce is final and I have my maiden name restored to let’s say Susan J. Brown, how should the areas in quotes read on the new Grant Deed?
Juliana Tu August 11, 2014 at 6:28 pm	When you are changing your name, you would grant it out this way:
“Susan J. Brown, an unmarried woman, who acquired title as Susan J. Smith a married woman as her sole and separate property” hereby grants to “Susan H. Brown, an unmarried woman”
Be sure you use this vesting only after the property ownership is under Susan Smith, a married woman… etc. and your divorce is final. Don’t do it before.
Michael Strickland August 5, 2014 at 9:25 pm	Hi,
My wife and I purchased a house in San Mateo County 11 months ago, and would like to add our son to the deed who is completely paying the mortgage which is about half the value of the property. Deed is currently joint tenants. Do we file a quitclaim deed with 50% TIC ownership for our son and 25% each for my wife and I? Do we list transfer tax based on the outstanding value of the mortgage on the Transfer Tax Affidavit form?
We have an agreement that he assumes responsibility for paying the mortgage or refinancing in his name.
I appreciate any advice which you may have.
Juliana Tu August 5, 2014 at 10:12 pm	You can either add your son to the title as a “gift” and claim exemption as a parent to child transfer. There would be no payment of Transfer Tax or re-assessment of property taxes if you complete the documents correctly. Or you can “sell” 50% of the property to your son and pay transfer tax on that 50% your are selling to your son and that 50% of property would be re-assessed. Either way, “you and your wife” would be the Grantors and “you and your wife, husband and wife as to 50% and your son as to 50% “ would be the Grantees. There is also the matter of how the 3 of you are going to vest yourselves. Will it be as “joint tenants” or will it be as “tenants in common each as to undivided 50% interest?” Please discuss this financial transaction with your legal and financial counsel before you attempt to do anything. It’s easy enough to sign away ownership, but much harder to correct mistakes so please get the correct counsel before you do such a transfer.
Randy Bolsinger July 31, 2014 at 11:49 pm	I am looking at adding an addition to my house and will need to finance it. My lender says I don’t qualify credit wise and I can’t
use my brother as a co-signor as I can use his income but not his good credit. The lender will do the loan if I put him on the title,
but this would probably trigger my brother having to deal with property tax. Also, the property would probably have a reassessment
and transfer taxes. He wants to help me but obviously this scenario won’t work.
Is there a way to get my brother on the title without reassessment and transfer tax fees and having just myself being 100 % liable for the property taxes assessed to myself only? Lender suggested a quick claim deed but I don’t think he thought about the repercussions of my brother paying property taxes. Obviously I would pay the property taxes for his half but I want to avoid this scenario
altogether. This would probably be what would happen if I add my brother as a Joint Tenant. My goal is to get the loan and the work done and refinance that loan with my 1st mortgage in 2 years when my credit will be reestablished.
Any ideas or solutions would be greatly appreciated. Great site by the way!
Juliana Tu August 1, 2014 at 1:56 pm	Let me first qualify my response to your question by stating that we are a settlement services/escrow company in California, and most of our transactions are for handling properties in this state. Other states have different laws, rules, regulations and standards of practices that I cannot comment on. If you are from a state other than California, you should ask your question of closing professionals or closing attorneys in your state.
In California you can try to add your brother to the ownership by using a Grant Deed whereby you would grant the property to you and your brother as Joint tenants. You would request a transfer tax exemption by typing on the Grant Deed that “This is a bonafide gift, transfer between siblings, and the grantor received nothing in return, R&T 11911”. On the preliminary change of ownership form you would mark “I” in Part 1 of page 1 and then sign in the certification section on page 2, leaving the rest of Part 2 and Part 3 blank.
Please note that the exemption from property tax re-assessment by the County Assessor’s office and the acceptance by the County Recorder of your exemption from payment of transfer tax on the deed are both subject to these governing bodies’ review. If they need more proof from you for your claim, they will contact you. It is not automatic just because the exemption was written in.
If you need help with the preparation of the necessary documents, I can recommend the following: The Document Center – #(818)541-0901, RecordMyDocs.com – #(714)482-2077, or Doc Star Services – #(855) 362-7827. Explain what you need and they can help you. Their costs do vary so please call them first.
susan July 19, 2014 at 7:13 pm	HI,
This is such a great informative site, thank you for that.
I want to take a property out of an LLC and transfer to my name, and eventually to trust name, I am the only member to the LLC.
I have been advised to first transfer to my individual name and then from there to the trust, and what steps to take.
I am not sure what kind of exemption to use and what to write on the preliminary change of ownership report, so I can avoid the reassessment of the property as well as transfer tax.
Juliana Tu July 20, 2014 at 3:21 pm	Yes, it is best to provide a clean chain of the ownership of deeds, first from your LLC to you, and then from you to your Trust.
On the deed from the LLC to you , you would use the following: “The grantors and the grantees in this conveyance are comprised of the same parties who continue to hold the same proportionate interest in the property, R & T 11923 (d).” On the preliminary change of ownership for you would check on page 1, Part 1 – M. You don’t need to complete either part 2 or Part 3. Just sign in the Certification area.
On the deed from you to the Trust, you would us the following: “”This conveyance transfers an interest into or out of a Living Trust, R & T 11930.” On the preliminary change of ownership form you would check on page 1, Part 1 – K.(1). Again, no need to complete part 2 or 3. Just sign in the certification area.
Tootsie July 13, 2014 at 12:05 pm	Hi Juliana,
Awesome info you are providing! I have what seems to be a fairly common question…but here are some specifics with my situation that I was hoping you can advise me on. I purchased a home 4 years ago in San Jose, CA. The loan and title of the house is under my brother and his wife’s name ( I was unable to qualify for a loan at the time). I would now like to transfer title to my name. Is there any way this can be done without having the property tax reassessed and most importantly without having to pay out taxes? Property was purchased for approx $600K, with a $200k down payment, value of home today is approx $850K. With my income, I would be able to qualify for the remaining balance of the loan. So, how should I go about with this transfer? And if this helps, since the purchase of that home, my brother and I have each purchased another home. (one in each of our names)
Juliana Tu July 13, 2014 at 3:45 pm	In order not to have the property taxes re-assessed you can ask your brother and his wife to siqn a Grant Deed and put the following exemption code on it” This is a bonafide gift, transfer between brother and sister, and there is no consideration involved R&T 11911.” If the county recorder and county tax assessor accepts this, then there will be no payment of transfer tax at recording or re-assessing of property taxes. It is always up to the County Recorder and the County Tax Assessor to accept the exemption for each particular case and not charge the transfer tax or re-assess the property. We recommend how it is best done, but at the end it is up to the government agencies to make the final decision. If they do not accept, then you will have to petition them. There is never any guarantee that they will accept the exemptions and they may require some sort of proof that you qualify. You won’t know until you have the documents sent for recordation. They will contact you if they need more information from you to make a decision.
If you are also seeking to take the loan out from his name, then you will need to do a refinance of the property once it is under you name. If not, the ownership will be under your name but the loan remains under his name. Please contact a Loan Officer if you are doing a refinance also and they may give you ideas of what they would like to see done in order for you to qualify for a new loan under your own name.
Mandy Middleton July 9, 2014 at 5:54 pm	Hi, my at some point hopefully soon ex-husband and I recently sold the home we owned together. I would like to buy another home for myself, how is best to do this so that it doesn’t affect his ability to buy down the road? Is there a form or declaration that needs to be completed so my new property would be considered separate for his DTI since California is a community property state?
Juliana Tu July 9, 2014 at 6:48 pm	Once you and your husband are fully divorced and a divorce decree issued, then you are considered an unmarried person. You can purchase a new home under your name only and it would not affect your ex-spouse. Community property between the spouses would not exist anymore once a divorce is finalized. If you buy a home before the divorce is finalized, however, then he can still put in his claim. Hope this helps and hopefully I answered your question.
Joy Ch June 23, 2014 at 2:16 am	Thanks very much for explanation, it is a great help. Just want to make sure I understand my case:
1.	I received the Preliminary Report (Effective 5/07/14) page 1, item #2 states that my property as an undivided 99% interest and my cousin & wife as an undivided 1% interest, as tenants in common. So, after the refinance, I remove my cousin couple name that means my is become 100%?
2.	Could re- explain the calculation transfer tax of my San Jose city, Santa Clara county of California state: My original purchase price is $380,000, minus 20% down payment, the loan is $304,000, that means the equity is $76,000 so my cousin & wife 1% is going $760, am I corrected up to here.
However, am not sure how calculate after reading the Preliminary Report’s page 5, NOTE 3: The city of San Jose impose a transfer tax of $3.30 per thousand bases on the full value of the property at the time a deed or other transfer is recorded. This is in addition to the $1.10 per thousand County transfer tax. I am not sure what meaning in the above bold font? When it said full value of the property is it mean my property current market value??? In this time re-finance, I have to pay down my loan to $235,000. That means my later loan is going to be $235,000. My questions are:
•	If remove my cousin and wife name off the property title, I become 100% vesting interest in this property. How does city calculate my transfer tax? Could you do me favor to help calculate what is my cousin 1% transfer amount ?
•	Do I need to submit a Quitclaim form to title company before the escrow closing?
•	I am going to be qualified of property tax exemption also I will qualify for exempt from property transfer tax during this time refinance??
•	From your response: “On the preliminary change of ownership form you would put down on Part 2 that the transfer is only 1% and the transfer amount is . . “ Am I going to ask the rep. of the title company for “Preliminary change of ownership form” ? Then, fill out and submit it to title company during the paper work process preparing for escrow closing? And, where is the Part 2 of the Preliminary Report? I do not see part 2 on my currently preliminary Report?
My loan officer seems helpless, she keep saying she does not know and both her and the rep. of the title company does work for those situation.
I really appreciate your kindness, thanks very much in advance.
Juliana Tu June 23, 2014 at 2:17 pm	With respect to your question, if the equity in your property when you first purchased it is $76,000, and you are asking your cousin to transfer back his 1% based on the old equity at the time of purchase, then your cousin’s equity is 1% = $760. County transfer tax is $1.10 per $1,000 of $760 = $0.84. City Transfer Tax is $3.30 per $1,000 = $2.51. That’s how it would be written on the Deed of transfer of ownership. On the preliminary change of ownership form, on page 2 Part 2 you will check box “C” to state that only a partial interest was transferred, and put down 1%. On Part 3 you put down the total purchase price which is $760.00.
Whatever the current value of your property is, and whatever the refinance of your new loan will be, you should reflect the old value Please ask the escrow officer / title company helping you with the refinance to help prepare these documents for you and have the correct transfer tax amounts reflected on the deed. These documents should be done and recorded before the close of your refinance escrow. If your escrow officer at the Title Company says they can’t do this for you then you need to find another escrow officer who can help, or you can get a document company to prepare the documents for you and give it to the Title Company. Here are a few companies who do documents: The Document Center – #(818)541-0901, RecordMyDocs.com – #(714)482-2077, or Doc Star Services – #(855) 362-7827. Explain what you need and they can help you. Their costs do vary so please call them first.
Joy Ch July 2, 2014 at 1:53 am	Once again, thanks for reply, but could you please tell me what is the name or what so call of name for those docs which I need to ask title rep. or loan officer help to prepare for my case. In case, the title co. is still helpless then I will call those from your recommendation for my docs preparation and bring the document back to title company the same day I bring my check pay for refinance fee, does this way work? Do those docs need to be sign by both me and my cousin couple? And, does the signature need witness of notary, too? Thanks in advance and really appreciate your help.
Juliana Tu July 2, 2014 at 4:48 pm	You will need a Grant Deed from your cousin and his wife to you (and your husband, if his name appeared originally) with transfer tax for $0.84, and mark it a transfer “less liens”
You will need a preliminary change of ownership form and on Part 2 you check box “C” to state that only partial interest was transferred for 1%. On Part 3 you put down the purchase price of $760.00.
Your cousin will need to sign in front of a Notary Public. Once the documents are done, give them to your Title Company as soon as possible. Don’t delay your refinance because of these outstanding issues.
Joy Ch June 21, 2014 at 3:02 pm	Refinance my home mortgage is in pending, my cousin & wife help to purchase my residence because at that time my employment is not qualify for that purchase loan amount. As a result, my cousin & wife’s name was also on the loan & property title too. But my realestate agent understand my situation so she recommended that put 1% vesting holding for my cousin + wife on house title or something like that ( I could not remembered) even my cousin couple have no financial responsibility for this property at all.
Now, wanting avoid property tax increase after re-finance my mortgage because I take advance of refinancing to remove their name off my property title? Please advise what to do to avoid my property increase and to avoid property re-assessed , I really appreciate the helping, greatly thankyou.
Joy Ch June 21, 2014 at 3:04 pm	More info adding, my property is in San Jose, California.
Juliana Tu June 22, 2014 at 6:15 pm	Let me first qualify my response to your question by stating that we are a settlement services/escrow company in California, and most of our transactions are for handling properties in this state. Other states have different laws, rules, regulations and standards of practices that I cannot comment on. If you are from a state other than California, you should ask your question of closing professionals or closing attorneys in your state.
When you ask your cousin to deed the 1% back to you in the refinance transaction, calculate how much that 1% is based on your original sales price minus the loan that was on it. For instance, let’s say you purchased your house for $500,000 and you had a loan for $400,000 at the time. Then your equity is $100,000. His 1% is only $1,000. Transfer tax of $1.10 per thousand is only $1.10.
On the preliminary change of ownership form you would put down on Part 2 that the transfer is only 1% and the transfer amount is $1,000. This way the assessors’ office would only value the transfer on the original amount of the 1% that he owns.
Hope this helps. You can have your escrow office who is handling your refinance help you with the paperwork and calculation.
Ryan June 18, 2014 at 4:09 am	Cool site. I am in the middle of a divorce and we have four rental properties under both names. My wife agrees to transfer her interest to me using the “Interspousal Transfer Grant Deed”. It is part of the “Marriage Settlement Agreement”. The properties are in Contra Costa County, California.
Lender is Wells Fargo.
1. Do I have to pay the transfer fee?
2. Will the properties get reassessed at a higher property tax?
3. Do I need to notify my lender about the transfer?
4. Will the lender exercise its option pursuant to a “due on sale” clause due to transfer?
Juliana Tu June 18, 2014 at 11:44 am	You don’t need to pay the transfer tax and the property will not be re-assessed at a higher value, as long as you put the proper exemption on the Interspousal deed, as follows: “This conveyance is in dissolution of marriage by one spouse to the other, R & T 11927.”
We are not representatives of your Lender so I cannot say what they will or will not do. However, as this is a divorce situation, the lender does not normally get notified and they normally don’t exercise the “due on sale” clause, because this is not an actual sale to a third party. If you notify them, they may want you to pay the loan in full or refinance under your name only. I suggest that you give your loan officer a call and have him answer your questions #3 and #4. We can’t give you any advice regarding the status of your loan.
Carol June 13, 2014 at 9:37 am	My ex spouse transferred his home from his revocable trust to his sisters revocable trust using R&T 11911 using “This is a Bonafide Gift” om 1/12/11
Two weeks later he died. Because I had a lein on the property placed a year prior to this due to unpaid alimony, does this Trust Transfer Deed nullify my lein?
Juliana Tu June 13, 2014 at 7:23 pm	Let me first qualify my response to your question by stating that we are a settlement services/escrow company in California, and most of our transactions are for handling properties in this state. Other states have different laws, rules, regulations and standards of practices that I cannot comment on. If you are from a state other than California, you should ask your question of closing professionals or closing attorneys in your state
No, his transfer of the property to his sister does not nullify your lien that was placed on the property before the transfer.
Sandra June 12, 2014 at 10:45 pm	Hi there – stumbled upon your site while searching for information on property taxes. My mother is 50 and owns a double story home in Contra Costa. She is having trouble going up the stairs due to knee issues. She loves the home she is in but thinks she should find a single story home to make her life easier. Is there anyway she can buy a home and transfer her property tax rate? She is hesitant to move because she thinks she won’t be able to afford the property taxes. Is there any tax law around this? I know that there is a 55 age requirement to transfer the property tax rate however since she is below that minimum age is there any other option for her? Thank you.
Juliana Tu June 13, 2014 at 7:22 pm	As you known, California has Proposition 60 and 90 which allows the transfer of the property tax base from the old low base on one property to the new home which might have a much higher base , based on the purchase price. However, this transfer of tax base is for those who are 55 or over. I have not heard of any other new regulations that might you’re your mother. Please check with the County Assessor’s directly to see if they might have anything else that will help.
I am sorry I am unable to help!
Sandra June 14, 2014 at 1:08 pm	Thanks Juliana for looking into it I appreciate it!
Mario June 12, 2014 at 10:58 am	This site is awesome.
I am transferring a rental property from one single-member LLC to another (I am the single member in both).
1) Would this be the best notation to use? “The grantors and the grantees in this conveyance are comprised of the same parties who continue to hold the same proportionate interest in the property, R & T 11925 (d).”
2) Is a quit claim deed the best to use?
3) Where on the quit claim deed do I include the R&T 11925 language? There are boxes to check to state what the documentary tax is based on but no exemption boxes or space to type in the exemption.
Juliana Tu June 12, 2014 at 5:09 pm	1.	“The grantors and the grantees in this conveyance are comprised of the same parties who continue to hold the same proportionate interest in the property, R & T 11925 (d).”
Is the correct Exemption code to use.
2.	We prefer that a Grant Deed is used.
3.	The language for the exemption has to be typed (squeezed in) in under the legal description paragraph. On the top, where the boxes are to be checked and transfer tax amount stated, you put “NONE” under Transfer Tax, since you won’t be paying this tax.
Rita June 10, 2014 at 1:00 pm	My soon to be ex husband is quit claiming our home to me and not sure what Exemption R & T code to use on the form ? Taking property out of our family trust and quit claiming to me, the wife.
No transfer tax, correct?
Juliana Tu June 10, 2014 at 5:16 pm	A transfer between husband and wife due to divorce would be exempt from transfer tax. You would probably do one deed from the Trust to yourselves as individuals using the following exemption: “This conveyance transfers an interest out of a Living Trust, R & T 11930.”
And then do a Deed from your husband as an individual to you as an individual using the exemption “This conveyance is in dissolution of marriage by one spouse to the other, R & T 11927.” There would be no transfer tax to be paid on either.
Please be sure you talk to your divorce attorneys regarding these deeds. They might want it to be done differently.
Ann June 10, 2014 at 9:14 am	My parents own a home in Contra Costa County Ca and have it vested as husband and wife. My father passed away in January.and my mother is now wanting to sell the property does she need to go through probate to change the title vesting?
Juliana Tu June 10, 2014 at 5:16 pm	Your mother won’t need to have the property probated in order to sell. If she owned it with your father as husband and wife as Joint Tenants, then once it gets into escrow the Escrow Officer will prepare an “Affidavit of Death of Joint Tenant” and a preliminary change of ownership form for her to sign. She will need to attach an original certified copy of the Death Certificate to it and the Escrow Officer will record it at the County Recorder’s office.
Michele May 15, 2014 at 1:58 pm	Hi Juliana:
Thank you so much for making this resource available. I am the beneficiary of a home in San Francisco which is being held in a Survivor Trust (to which I am the remaining sole beneficiary). The property is going to be released to me and I have some questions about getting Title transferred appropriately. The release is coming three years early, and no one wants to have to pay for any of it, so I am having to handle it myself (I have bought and sold property before, so I have some examples of Quitclaim & Grant Deeds to use). 1) Can we use a Quitclaim Deed to transfer title to me from the Survivor Trust, or would we be better off to use a Grant, Bargain & Sale Deed? I’ve been told by my family attorney that a Quitclaim will be fine, but my Realtor said that a Quitclaim will make it difficult to get a loan on the property.
2) What can I expect regarding Transfer Tax? The property is under Prop 13 and I don’t believe this transfer from a Living Trust to the Survivor Trust to the Beneficiary should require a transfer tax, nor a re-assessment. What verbage would be appropriate on the Deed to receive an exemption?
3) At a later date I would like to add my spouse as a joint tenant (and then we will also be putting together a living trust). Will that create a taxable event?
You are an awesome human being to provide this resource. I can’t tell you how grateful I am.
Juliana Tu May 27, 2014 at 4:39 pm	To answer your questions:
1.	Using a Grant Deed is best, although using a Quitclaim also transfers ownership. But a Grant Deed is preferable.
2.	Transfer Tax exemption – the closest exemption allowed by the County Recorder and County Assessor would be “This is a bonafide gift, transfer from a Trust to a Beneficiary, and there is no consideration involved, R&T 11911”. However, It is always up to the County Recorder and the County Tax Assessor to accept the exemption for each particular case and not charge the transfer tax or re-assess the property. We recommend how it is best done, but at the end it is up to the government agencies to make the final decision. If they do not accept, then you will have to petition them. There is never any guarantee that they will accept the exemptions and they may require some sort of proof that you qualify. You can contact them directly and ask them whether this exemption will be allowed in your case.
3.	When you own the property under yourself and are adding your spouse later on the transfer tax exemption should be acceptable and there should be no-re-assessment of taxes either.
I do recommend that you contact the County Recorder’s office to see if they will accept your exemption request when transferring from the Trust to the sole beneficiary.
Jenny May 9, 2014 at 1:40 am	Hi, Juliana
We have a residential property at San Jose CA. Original deed is under four names like this: John and Mary, husband and wife; mother and father husband and wife as Tenants in common
Father passed away at the end of last year. His 1/4 share is transfered to his trust. Mother(which is me) is the trustee and also the beneficiary of his trust. I have the power to sell, convey, exchange or alter any of his assets of the Trust Estate under the trust aggrement. Now I would like to close the trust to transfer his share to my individual name at the same time to retitle the home as : ” John and Mary, husband and wife in comunity property ; mother(me)(should I say widow?) as joint tenancy with rights of survivorship ” Is this the right way to say it?
What R & T code to use?
Juliana Tu May 9, 2014 at 3:14 pm	You didn’t clarify if the father’s share was transferred into the Trust before he passed away? When he passed away was the actual ownership as follows: John and Mary, husband and wife as to ½ interest; Mother, as her sole and separate property as to 1/4th interest, Father Trust 1/4th interest, tenants in common? If the father transferred his share only to the trust, then he broke the original joint tenancy between all parties.
I think my best recommendation is that you do this: A Grant Deed from Mother, Successor Trustee of the Father Trust (Grantor) to Mother, a widow (Grantee). Use the following R&T code: “This conveyance transfers an interest out of a Living Trust, R & T 11930.”
A second Grant Deed from “John and Mary, husband and wife and Mother, a widow “(Grantor) to “John Doe and Mary Doe, husband and wife and Mother, a widow, All as Joint Tenants” (Grantee). Use the following R&T code: “This conveyance changes the manner in which title is held, grantor(s) and grantee(s) remain the same and continue to hold the same proportionate interest, R & T 11911.”
This way all 3 of you will own the property as Joint Tenants with rights of survivorship and if one person passes away, it will automatically go to the other 2 people.
My concern is that I don’t know what happened between the original deed and when the Father put the Trust on. What happened to the mother’s interest? Was an Affidavit of Death of Trustee done? The Deed that put the father’s interest into his Trust would have broken the Joint Tenancy.
I hope this helps a little. Unfortunately, I did not get sufficient information to see the whole picture so that I can give you input for you to make an informed decision. As always, please, please check with your financial and legal counsel before you do anything. Your Trust attorney and your CPA should be involved in giving you correct counsel on what you should do. Removing the property from the Trust has consequences to your Estate Planning.
Mary April 29, 2014 at 12:05 am	Hello,
Can I use the exemption “Conveyance in Dissolution of Marriage” in filling out the Quitclaim Deed even if I have not yet filed the divorce paperwork? My soon to be ex-husband agrees to transfer the deed all to my name. I would like to change this now rather than waiting later. If not, do you have any advice on how this can be done while no divorce paperwork has been filed? I understand that the home will stay as “community property” until divorce is settled but what kind of languange do I use to state he is not entitled to the property should anything happen to me during the dissolution of marriage.
Juliana Tu April 29, 2014 at 2:54 pm	When you use the “Conveyance in Dissolution of Marriage” you will be asking your soon to be ex-husband to grant the property to you as an “Unmarried Woman”. However, you are not legally or technically an “unmarried woman”, so I don’t think that it would be correct to use that exemption.
If your soon to be ex-husband is willing to sign a deed to you now, before the divorce, then I would type the following on the deed:
“This conveyance establishes sole and separate property of a spouse, R & T 11911. It the express intent of the Grantor, being spouse of the Grantee, to convey all right, title and interest of the Grantor, community or otherwise, in and to the herein described property, to the Grantee as his/her sole and separate property.”
Joanna April 25, 2014 at 5:21 pm	Fantastic website, Juliana!
My husband and I are purchasing a home in San Francisco and need to add his brother to the title because he helped us qualify for the loan. I have a several part question -
1. Is here a minimum percent interest the brother can hold? Eg 1%?
2. After close of escrow, how soon can we take him off title via a quitclaim deed?
3. Will SF charge a transfer tax in this scenario, or can we avoid it with the bonafide gift clause? If taxed, will the tax be based on the value of the home or the share that his brother holds?
Juliana Tu April 25, 2014 at 6:04 pm	1.	There is no minimum interest your brother has to hold. You can go on all as “Joint Tenants” so that if anything were to happen to him, you and your husband would automatically get his share without going through probate. Holding title with percentage interests means that you will hold as tenants in common and therefore, the property won’t go automatically to the rest of the owners if one passes.
2.	I would recommend that you hold him on title for at least a few months before you have him quitclaim. Make sure the loan is settled with one servicer.
3.	A transfer tax exemption can be requested in your case under the bonafide gift exemption. Please hold title all as “Joint Tenants” in that case. It is easier for the County Assessor and Recorder to accept that it is a gift, transfer between siblings. If the government agencies won’t allow the exemption, then it would be taxed based on the value of your brother’s interest, if you have given him an actual percentage, or it would be based on 1/3rd. Hope this helps! I am glad you like our website.
Nicole April 24, 2014 at 10:32 am	Hi Juliana! What a wonderful resource.
I recently changed the name of my non-profit public business corporation by an amendment to my Articles of Incorporation. I want to deed the property to clarify, as in CompanyNEWNAME f/k/a CompanyOLDNAME hereby grants to CompanyNEWNAME… This is in Santa Barbara County. Do I just state it’s a name change on the deed? Thanks!
Juliana Tu April 24, 2014 at 11:29 am	Yes, to memorialize the change in your company’s name, you should change the name of the real property asset also. So you would do the deed like this:
“CompanyNewName, who acquired title as CompanyOldName, hereby grants to CompanyNewName…..”
You would put in the exemption as “”The grantors and the grantees in this conveyance are comprised of the same parties who continue to hold the same proportionate interest in the property, R & T 11923 (d).”
Denise T. April 22, 2014 at 2:43 pm	Hello Juliana,
My husband and I bought a home in 2000 in Orange County California. The property was originally vested to us as husband and wife, community property (possibly joint tenancy, I can’t remember). When we had the property refinanced, they required me to execute an Interspousal Transfer Grant Deed vesting title to my husband as his sole and separate property.
At the time, I was not aware just what I was waiving nor the tax implications. We are in the works of setting up a revocable living trust. But before we do so, we thought it would be best to first re-title the property in both our names as husband and wife, community property with rights of survivorship.
Should we do this first or can we just have my husband grant title to himself and myself as Co-Trustees of our Trust? If a new deed should be prepared before transferring to the Trust, is there any “magic” language to include?
Juliana Tu April 22, 2014 at 5:40 pm	In order to make things easier, you could do one deed from both of you to your new revocable living trust. What you would do is something like this:
“John Doe and Jane Doe, husband and wife, who previously held title as John Doe a married man as his sole and separate property”, hereby grants to “John Doe and Jane Doe, Trustees of the Doe Family Trust……”
Then there would be no need to do 2 deeds, and any interest that you might have and your wishes to establish this trust would be taken care of all at the same time.
stephany April 17, 2014 at 3:00 pm	Hello, Im preparing a Quit Claim Deed Transferring title from A Widow to her and her children. Which R & T code works best to avoid Transfer Tax.
Juliana Tu April 17, 2014 at 10:47 pm	The transfer tax exemption to use when transferring property from a widow to herself and her children would be: “This is a bonafide gift, transfer between parent and children and the grantor received nothing in return, R & T 11911.”
Ken McCabe March 26, 2014 at 3:35 pm	My mother left her home to me and my sister 50% each, tenants in common, five years ago when she passed away. This was probabated and is in the court order filed with San Diego County. Under prop 13 the property tax base is at a very good assessment and the home is completely paid off. My sister has (finally) decided that she wants to buy me out, the current value is probably around $400K. The plan is for her to get a mortgage for my portion of the house. My question is how to accomplish this the best possible way, saving her the most money. I don’t think there is a way to avoid a reassessment for prop 13 for 50% of the current value – or is there? (this will triple her taxes)
Is the best method for me to transfer my interest by quitclaim? Before she applies for the mortgage – with her giving me a promissory note? She would then pay the transfer tax (~$200) and file the quitclaim and a PCOR – right?
Juliana Tu March 26, 2014 at 5:40 pm	The correct way for your sister to buy you out would be to treat this as if it were the sale of one-half of the property. Transfer tax would be paid on the one-half that is being sold, and that half would also get a re-assessment of taxes. You would open a real escrow transaction for this. This is the correct and clean way of doing it, and it would give her and you paperwork for income tax return declaration. However, there are costs involved as there would be in any sale, and she would have to talk the process over with her Loan Officer, to see if this is the best way for her future Lender to approve the transaction.
The other way is doing like you said, by quitclaim deed of your interest to her before she refinances and for her to give you in return a promissory note secured by a Deed of Trust recorded on the property. Then she can show the future Lender that she is refinancing to pay you off. You can do it this way as a private transaction between parties and not open an escrow, but then you would not have any closing statement, 1099, and you will not be abiding by certain government regulations. It would be better if you opened an escrow so that everything is done above board and all laws are met, but there would be costs. I think your sister should first talk it out with the loan officer who will be helping her with the new loan and see what underwriting conditions her Lender may have. Then you can set up the sale accordingly.
Unfortunately, no matter which way you do it your portion of the property would have its taxes re-assessed. Hope this helps!
Sandoo March 25, 2014 at 1:23 pm	My husband and I have a living trust that holds our personal residence. Two years ago my husband transferred his interest in the home to me, so that I have 100% interest in the home, which is still in the living trust. I want to transfer half of the interest in the home back to him. Will that create an increased valuation for real property tax purposes, causing us to pay higher real estate taxes in Orange County on the property? Or, will it be a moot point for real estate tax purposes, since we are husband and wife??
Juliana Tu March 25, 2014 at 5:38 pm	You say that your personal residence is in a living trust. If that’s the case, how did he transfer his interest to you? If everything is in the trust then he doesn’t have individual ownership that he can transfer to you, and you wouldn’t have individual interest to transfer to him. So it seems that there is something incorrect here, unless I am not understanding it. Here is the standard scenario: A and B, husband and wife grants to AB Living Trust the personal residence. The Trust now owns everything. Neither A nor B own any part of the principal residence anymore; the Trust does. If this scenario is correct then your husband could not have granted his interest to you 2 years ago because he didn’t have an interest to grant.
I am sorry, but your question raises questions on what was done previously. So I am not able to give you a good answer. Regarding real estate taxes, as long as it is an interfamily transfer, then you can ask for exemption from tax re-assessment. It would be up to the County Assessor to acknowledge the validity of the request and not re-assess.
Anna March 24, 2014 at 10:32 pm	I would like to add my adult 3 kids’s names to the deed. I am still going to live in the house with one of my daughters, the others live in rented apartments in other cities. I guess it is considered as a gift, since I am giving the house to them and not selling it to them, and I am going to pay the mortgage as well
What are the tax consequences, if any; which Real Property Transfer Tax Exemption would apply?
What about the mortgage: do we need to inform the lending company?
Juliana Tu March 25, 2014 at 5:37 pm	Adding your adult children is considered a gift, so you would use the exemption: “This is a bonafide gift, transfer between parent and children, and there is no consideration involved, R&T 11911”.
You won’t need to inform your Mortgage Lender.
As to tax consequences, you will need to ask a CPA whether you have any. We would not be able to comment on that.
Frank March 17, 2014 at 4:34 pm	I need to convey community property interest in our home to my wife. Is it best to use a grant deed or a quitclaim deed? Thank you.
Juliana Tu March 17, 2014 at 6:36 pm	With respect your question of what type of deed to use, a Grant Deed is the best document to convey real property ownership interest that you presently have, whether it is to your wife or children or others.
Jess March 11, 2014 at 9:42 am	My sister-in-law and my brother held title of their house in Orange County, CA as joint tenants (husband and wife) with right of survivorship. Unfortunately, my sister-in-law passed away recently. My brother recorded an Affidavit of Death of Joint Tenant (attached with the certified death certificate) at the Orange county registrar. Now, the people at the Orange county registrar told him he needs to record a deed? Is this a grant deed or quitclaim deed they are referring to? And he is deeding the property to himself (since my sister-in-law is deceased)? My brother is planning on setting up a trust, can he record the deed when he transfers the property into the trust then? Thanks.
Juliana Tu March 11, 2014 at 1:08 pm	Once your brother recorded the Affidavit of Death, it makes it of public record that his spouse has passed and he is now the sole owner. He does not need to do a deed to himself, even though the County Recorder says so. It is a good idea that he sets up his Trust, and at that time the Trust attorney will make sure that the proper deed is filed to take it out of the individual and put it in the Trust.
Louie March 3, 2014 at 9:23 pm	Hi Juliana,
I had a quick question regarding the quit claim deed. We do qualify for the exemptions under the guidelines of it being a gift with no monetary consideration. In this case, on the quit claim deed form itself, what would you fill out for the beginning sections of where it lets you computer the necessary taxes.
..Computed on the consideration or value of property conveyed; OR
..Computed on the consideration or value less liens or encumbrances remaining at time of sale.
do(es) hereby REMISE, RELEASE AND FOREVER QUITCLAIM to Specifically, where do you fill in the exemptions part? Thank you.
Juliana Tu March 4, 2014 at 9:16 am	Regarding where the clauses would go, here it is:
On the top part of the form, where it says “Documentary Transfer Tax $” you type in “None”
The actual exemption sentence you would put it in the body of the document, underneath the legal description, and right above where the signature lines are.
Jen January 20, 2014 at 11:23 pm	Hello Juliana,
Currently the house is under my fiance’s name, and he would like to add me to the title via Quit Claim Deed with both of us as joint tenants. I contributed to the downpayment as well as montly mortgage payment. We are not planning to be legally married any time soon.
What transfer tax exemption reason should I put down for this case? I’m reluctant to use “This is a bonafide gift and the grantor received nothing in return, R & T 11911″, as it is not really a gift and there could be a tax implication on me as a grantee. Would I be able to use Exemption Reason #3 “This conveyance confirms a community property interest, which was purchased with Community Property Funds, R & T 11911.” ? Is the term community property interest applicable to 2 individuals? What would you recommend so there will be no tax implications to him adding me as a joint tenant?
Juliana Tu January 21, 2014 at 11:41 am	As the two of you are not married, the Community Property exemption clause would not work. That only works for married parties.
The only exemption clause that would come close would be the “bonafide gift” exemption. Understandably, you don’t want to use this because of future tax implications, but there is none other. What you might want to consider is that you pay a minimal transfer tax, based on the original value of the property, minus the lien amount, and calculate your percentage interest of that. The basis for the tax calculation would be what the original basis was, so there is no increase in value and no re-assessment of taxes to a higher value. For instance, let’s say the property purchase price was $350,000 and the loan on it was $275,000. That means the equity is $75,000. If you are transferring 50% of the value, then your equity transfer is $37,500.00 and the County transfer tax is $41.25. You would complete the preliminary change of ownership by stating that only 50% of the value was transferred.
Hope this is not too confusing, but other than paying the actual (minimal) transfer tax and declaring the value based on the original purchase value, there would be no other way to exempt yourself from transfer tax or re-assessment of property taxes.
Please be sure you consult with your financial consultant before any decision is made on how the transfer will be made. You can also call the County Assessor’s office directly for guidance.
Phea January 12, 2014 at 4:30 pm	My grandfather owns a home off in Los Angeles county. The house is paid off and in his name, but he now lives out of state and I take care of renting out the house to tenants. I am still in California. We are trying to find the best way to get the house from his name to my name. Can you advise the best way to go about this? I want to make sure that it doesn’t end up costing my grandfather any money on taxes, etc. I would also of course prefer to not have to pay penalties and taxes on my end if possible.
Could you also please advise on who is the best person I should speak with and help me through the whole process? I believe an accountant would be the best person, but am not sure they know the best way to fill out the forms.
Juliana Tu January 13, 2014 at 10:19 am	Transferring the ownership of a property from your grandfather to you might have certain financial consequences. Is this going to be a sale? Is this going to be a gift? What is the value of the transfer? These are questions that you need to bring up with your accountant as well as your grandfather’s accountant before you proceed. Once the analysis is made as to the best way to proceed with all parties then you can decide how to handle the forms or if an escrow transaction will need to be open.
Tim Plaza October 2, 2013 at 1:00 pm	My wife purchased property in Sacramento, Sacramento County, CA and is the only name on the Grant Deed, there is no mortgage on it as she paid it in full up front. Now she wishes to add our son on a “Joint Tenancy Grant Deed”. We are preparing the Joint Tenancy Grant Deed adding him to the deed. My question is “can we avoid paying the Documentary transfer tax and City transfer tax?” Can we use R&T Code 11911 and stipulate “This is a bonafide gift, transfer between parent and child, and there is no consideration involved.” And the phrase “For a valuable consideration, receipt of which is hereby acknowledged” not be used on the new deed? Thank you in advance for your response.
Juliana Tu October 2, 2013 at 6:55 pm	A transfer to add your son would qualify for the exemption of transfer tax and property tax re-assessment. On the Deed please state that “This is a bonafide gift, transfer between parent and child, and there is no consideration involved, R&T 11911”. Leave the phrase “For valuable consideration….” in the form. Don’t take it out as it does not affect the exemption.
Please be sure you also complete a Preliminary Change of Ownership form and state on it also that it is a transfer between parent and child in Part 1 box “c”.
Dennis September 15, 2013 at 10:20 pm	Dear Julianna,
Due to my business I need to out of country often, for convenience, my sister use her name to buy a
property for me. While I back to LA, I gave back money to her and she went to escrow sign a grand
deed to me. I was wondering the procedure of signing a grand deed to me, escrow did not ask any identifiy
infromation from me nor driving number. I did not fell secure at all. The Grand deed send to me after a week wrote : “This is a bonafied gift the grantor received nothing in return R&T11911″ Did I need to pay any gift tax
later on and did I still have any tax benefit if I live in the house for two year then sale? Since the house only
record my name without my ID#, does any one will use my name to sell my proptery without my acknowlgement?
Juliana Tu September 16, 2013 at 3:47 pm	A Grant Deed is signed by the person who is giving away the property. Based on what you stated, the deed is done correctly. You should not have to pay a gift tax because this is not a gift; she was just buying the property for you and you reimbursed her. If the County Recorder or the County Assessor questions this “bonafide gift” transaction then you will have to prove to them that there is no consideration involved.
There is no need for identification from you to prepare the deed. We do not put identification numbers on the deed because then it becomes of public record and everyone will know your private ID number. When you sell the property or transfer it in the future, then you will need to provide a copy of your ID when you sign in front of the notary so that the notary can make sure you are the same person who is signing the Deed. By the way, be sure the Grant Deed that you received from your sister is recorded properly in the County where the property is located, to make it official and of public record.
I don’t know about the 2 year tax benefit for living on the property. That is a question you will need to ask your CPA.
Dennis September 17, 2013 at 11:19 pm	Thanks Julianna, but I was told that this kind of grand deed have problem to sale later years. Title
Company will go back to my sister to confirm whether the grantee a correct person. If at the time she is
not in USA, then I cannot sale my house, isn’t it?.
Juliana Tu September 18, 2013 at 12:28 pm	Whoever gave you the information that the Grant Deed will be a problem is not quite correct. It is not the Grant Deed that is the problem; it is that it was done privately between you and your sister.
When you have a Grant Deed that is done without the benefit of an escrow and the purchase of Title Insurance (as an accommodation between sister and brother, for instance), there remains an issue in the future sale of the property. It’s not that the Deed is incorrect, but that the Title Insurance Company who is going to do the insuring of the sale of your property wants to make sure there was no FRAUD involved in the original Grant Deed that your sister signed to you. They want to make sure she signed it of HER OWN FREE WILL. The reason for this is because of the huge amount of white collar crime that is going on. Title insurance covers fraud so when there are private transfers like yours they ask for the person granting the property (your sister in this case) to sign an Affidavit and have it notarized with the notary public stating that there was no fraud and she did it of her own free will. Once she provides this form (the escrow company will give that to you) then your sale can be concluded.
So this is the background information simplified.
Dennis September 19, 2013 at 11:02 am	Hello Juliana, this question back to my sister transfer her grand deed to me. Since my sister is much older
than me, after 10-30 year, by the time I want to sell my property, if she got Alzheimer’s or past away, how
The Title get this information to confirm that was her own free will.
Juliana Tu September 19, 2013 at 10:32 pm	If your sister passed away, you will need to tell the Title Company so and provide a copy of her death certificate. If she has Alzheimers you would need to get a doctor’s letter stating that she is mentally incompetent and therefore cannot sign the Affidavit.
I can’t tell you now what the Title Company may want in the future. Maybe if a lot of time has passed they may not want anything. Every title company has different underwriting requirements so maybe some of them may be more lenient than other and not require anything. My previous answer to you is just an explanation of what can happen in the future because of what occurred in the past. I don’t think I can help you any further than that. Just keep in mind of what can be asked of you when you sell or refinance the property in the future.
Rosa September 11, 2013 at 8:32 pm	Hello Juliana,
My aunt is US citizen and her sister is foreigner, they own an apartment. Now the sister( foreigner )wants to
Grand deed the property to my aunt (citizen）because she getting older age ，she do not want any money back。
Can she use is a bonafide gift 11911。
Juliana Tu September 11, 2013 at 10:49 pm	You did not mention if the property is in California. My answer below is predicated on the assumption that the property is in the State of California only. Other states have different government regulations that we cannot comment on.
Yes, your aunt can grant the property to her sister and state on it that “This is a bonafide gift, transfer between siblings, and the Grantor received nothing in return, R&T 11911″.
However, I have to caution you that it is always up to the County Recorder and the County Tax Assessor to accept the exemption for each particular case and not charge the transfer tax or re-assess the property. We recommend how it is best done, but at the end it is up to the government agencies to make the final decision. If they do not accept, then you will have to petition them. There is never any guarantee that they will accept the exemptions and they may require some sort of proof that you qualify. You won’t know until you have the documents sent for recordation. They will contact you if they need more information from you to make a decision.
sandy August 17, 2013 at 5:18 pm	Hi again,
I asked a follow up question above, but thought I’d add to it here: The original question was:A follow up to this question: If the parents and daughter are currently equally on the deed, but the parents are the mortgage holders without the daughter, but they want to take advantage of the higher gift amount allowed with no tax consequences for property transfers to children(2013), will recording the transfer/gift to the daughter effect the mortgage, or will it be fine if it is in the living trust (perhaps with the deed-holder being the living trust, stating that the transfer will occur when the mortgage has been paid off). I guess the question is whether or not the ‘gift’ would be protected this year in terms of taxes even though the actual transfer will occur once the mortgage is paid off as stated in the living trust. The other question is whether it should be recorded now, or later, and what the implications might be…
The thing that is confusing to me is the mortgage aspect. We don’t want the mortgage to come due immediately if we record, but we want to do the gift/transfer this year to avoid gift tax for the transfer of property as it falls below the allowed amount for 2013 that was extended and who knows what it will be in the future? To be clear parents and adult child are on the deed, but will 100% transfer from parent to child effect things as the child is not on the mortgage. We heard that one way this could be handled was by putting the house into the living trust as described above. Thank you for any information you may provide!
Juliana Tu August 17, 2013 at 9:27 pm	Now I know which question you were following up on! Sorry about that. Again, any transfer of ownership of the property affects your mortgage. The lender gave you a loan relying on your ownership and your income to sustain the loan. If you give your property away, that means the original people qualifying for the loan is no longer the owner! The Lender has the right at this time to call your loan due, and make your daughter (if she is now the full owner of the property) get a loan under her own name and payoff the loan under your (parents’) name.
Again, contact your CPA and financial counsel if putting the property into a Trust will help with the gift tax. As long as you are the Trustees of this newly created Trust, the Lender should accept that you really do still own the property and should not be calling the loan due. .
Anna August 17, 2013 at 2:35 pm	If an irrevocable trust distributes a highly appreciated real property located in San Francisco to its sole beneficiary in Los Angeles, 1. is there any transfer tax? 2. is there going to be reassessment of property?
What if it was a liquidating distribution vs. non-liquidating?
Juliana Tu August 17, 2013 at 9:26 pm	If an irrevocable trust distributes a property to the beneficiary pursuant to the terms of the trust, there should not be any payment of transfer tax or re-assessement of property taxes. Be sure that the deed that transfers the property states that “This is a transfer from a Trust to the beneficiary of the trust and there is no consideration involved, R&T 11930.”
On the preliminary change of ownership form, you will need to check the box J 3 on Part 1 of page 1 and you can cross out Part 2, 3, 4 and sign on the certification at the bottom of page 2. I am not able to answer the question whether there is a difference if it is a liquidating distribution versus non liquidating. If there was no consideration involved and the person receiving the property is an actual beneficiary of the trust, then it should be considered exempt.
My best advice is that if you have any questions, you should bring them up directly with the government agencies – the County Recorder’s office and the County Assessors office. There is never any guarantee that they will accept the exemptions and they may require some sort of proof that you qualify. Giving them a call and discussing your scenario with them should alleviate your concerns!
Ketan August 16, 2013 at 2:56 pm	I have a property on my name in San Joaquin county and I want to transfer it to living trust in which me and my spouse are the trustees, will this cause the re-assessment/payment of transfer tax and will I need to submit affidavit for exemption for document transfer tax, also which option do I check in PCOR, option A (transfer between spouses) or option L (transfer between parties of proportional interest). Is this the best route to transfer directly into the trust or do I need add my spouse to the title first and then apply for transfer to trust (I know for sure if both of us are on the title then there is no re-assessment or transfer tax)
Juliana Tu August 16, 2013 at 6:10 pm	If you owned the property by yourself previously, you don’t need to do a deed to add your wife first and then both of you do a deed to put it in the trust. You can transfer the property to your living trust directly like this sample:
Grantor: John Doe and Jane Doe, Husband and wife, who acquired title as John Doe, a Single Man
Grantee: John Doe and Jane Doe, Trustees of the Doe Family Trust
The Exemption to be put on the deed would be: “This conveyance transfers an interest into or out of a Living Trust, R & T 11930.”
You would both sign the Deed.
On the PCOR you would check J 1. On Part 1 of page 1 and then cross out Part 2, 3 and 4 of page 2 and sign under the Certification.
Joseph August 7, 2013 at 10:01 am	I live in San Joaquin county. I purchased a home in 2010 under my father in law’s name because of my low credit score at the time. Now I want to add my name to the deed. I am trying to figure out what would be the best way to avoid triggering a reassessment and/or paying any taxes. Should I just add my name to the title along with my father in law’s name? or should I add my name and my wife (his daughter) only and not him. What would be the verbiage used?
Juliana Tu August 7, 2013 at 6:35 pm	You can do the adding of your name 2 ways:
(1)	From your father in law (Grantor) to himself and you and your wife, all as joint tenants (Grantees)
(2)	From Your father in law (Grantor) to you and your wife (Grantees)
For either way you would us the exemption that “This is a bonafide gift, transfer between parents and children and there is no consideration involved, R&T 11911”.
Please note: Be sure that your father in law has his vesting correct (unmarried man/married man, etc) as the Grantee and you and your wife have your vesting correct (husband and wife as Joint Tenants or as Community Property with Rights of Survivorship) as Grantee also. If all 3 of you go on title, you should have the vesting as “All as Joint Tenants” to prevent future probate issues.
Richard Patton August 1, 2013 at 9:24 am	I have prepared a Grant Deed to transfer the trustee owners of real property to a different Trustee. it seems that this is simply a change of Trustee and therefore exempt from the transfer tax for that that reason. The PCOR lists such transfers as exempt pursuant to item “I” on the Preliminary Change of Ownership Report. However, the transfer to change trustees does not seem to fit into any of the statutory exemptions in California’s law (Revenue and Taxation Code Sections 11900 – 11930). What is the correct code for this transfer?
Juliana Tu August 1, 2013 at 7:34 pm	The closest exemption verbiage to put on the Grant Deed would be:
“This conveyance changes the manner in which title is held, to change the name of the Trustee of the Trust, grantor(s) and grantee(s) remain the same and continue to hold the same proportionate interest, R & T 11911.”
That would be how I would type it on the Deed, and then check one of the boxes under “J” on the Preliminary Change of Ownership form.
Allen July 31, 2013 at 3:26 pm	I am in Southern California, my uncle was on the title with me couple of months ago. I need to remove my uncle’s name off the title and add my brother’s name with me, using grant deed without consideration ($0). What exemption should I used to avoid transfer and/or gift taxes?
Juliana Tu July 31, 2013 at 11:01 pm	If the transfer from your uncle and to add your brother are both without consideration then the only transfer tax exemption clause you can use is: “This is a bonafide gift and the Grantor received no consideration in return, R&T11911″.
Although you may put this exemption verbiage on the Grant Deed, it is up to the County Recorder’s office and the County Assessor’s office to grant this exemption from transfer tax and from re-assessment of property taxes. As to your question regarding gift taxes, you will have to ask your CPA regarding this as everyone’s financial situation is different.
Shi July 31, 2013 at 12:20 pm	I am buying a house here in CA from my mom, who is the sole trustee/beneficiary of a trust, which owns the house. I am paying her for the house (she is acting as the bank) so we are putting together a grant deed, promissory note, and deed of trust. I think I’m paying the fair market value for the house. My question is what, if anything, I should put on the “documentary transfer tax” portion of the grant deed? Any help would be appreciated.
Juliana Tu July 31, 2013 at 10:59 pm	When you are purchasing a property, whether from an unrelated third party or from your mother you must pay transfer tax on the Deed. This is not a gift, so an exemption would not apply. The transfer tax is based on the purchase price that you and your mother have agreed on.
Stephanie July 19, 2013 at 11:23 pm	I just concluded a divorce and my ex signed a quit claim. I am refinancing the house in my name only and the escrow folks have included the county transfer tax in the transaction. They said to pay and work it out with the county afterwards. Should I file the quit claim before I sign the refi papers so there is no question about the transfer (or might that mess up the refi), or can I come back after the refi goes through and ask the county for a refund?
Juliana Tu July 21, 2013 at 9:16 pm	Let me first qualify my answer to your question by stating that we are a settlement services/escrow company in California, and most of our transactions are for handling properties in this state. Other states have different laws, rules, regulations and standards of practices that I cannot comment on. If you are from a state other than California, you should ask your question of closing professionals or closing attorneys in your state.
You did not provide sufficient information so I will answer as best I can. If you got the property from your husband as part of the divorce and you are not paying him any money for his share, then you can claim an exemption from transfer tax by stating that this is a transfer between husband and wife and there is no consideration involved. You can ask your escrow officer for help on that.
If you pay the transfer tax now to the County you will never get it back. In order for you to complete the refinance under your name only you will have to record the quitclaim deed to show that you are the sole owner of the property. This recording can be done at the same time as all the other documents for the refinance is being recorded. Again, I hope I was able to answer some of your questions. Unfortunately there wasn’t sufficient information for me to determine if I provided the correct answer. I do recommend that you talk to your escrow officer in detail about your questions as he/she may be able to answer it more correctly as he/she would have more background information on your transaction.
Patti July 4, 2013 at 7:24 pm	I am preparing a new grant deed for my parents to transfer real property to a revocable living trust in their name. Do I use R&T code 11930 – ” This conveyance transfers an interest into a living trust”? Also, do I need to fill out a Preliminary change of ownership report as well? They are still the owners of the property, nothing will change except adding the revocable living trust to the deed and that they are the trustees.
Juliana Tu July 4, 2013 at 8:27 pm	The exemption from transfer tax that you would type on to the deed is: “This conveyance transfers the interest into a Living Trust, R&T 11930″. You would still need to complete the preliminary change of ownership form. Check box J.1. in Part 1, page 1, cross out Part 2, 3 and 4 on the second page, and sign on the certification section on page 2.
Rosa Marie July 3, 2013 at 9:09 am	I’m trying to plan ahead here.
~ Currently my property title is under my name as Trustee of ‘my name’ Living Trust.
~ I wish to prepare a Quitclaim Deed to transfer title over to my daughter.
~ How should the Grantor name appear? Would it be exactly as it appears, including mentioning my Living Trust or would
I just include my name?
~ How long is a signed/notarized Quiclaim Deed good for without filing/recording it?
Juliana Tu July 3, 2013 at 5:29 pm	In preparing a deed to transfer a property from your Trust to your daughter, the Grantor is “Your name, Trustee of the xxxxx Trust”. The Grantee is “Your daughter name, a Single Woman, or a Married Woman” – please be sure you state her vesting and if she is married, her husband needs to be considered.
Once you have the Deed completed you don’t have to record it for it to be effective, but I always caution everyone that waiting too long to record it makes the document questionable in the future. The question may be asked in the future as to why the deed was never recorded? Was there a change in your intentions? What if you lose it? So, leaving an unrecorded deed lying around is not a good thing.
But, most important, before you do anything, please confirm with your legal or financial counsel whether you should be doing this deed out of the Trust and what tax and legal consequences you may have if that is done.
sandy August 17, 2013 at 5:09 pm	A follow up to this question: If the parents and daughter are currently equally on the deed, but the parents are the mortgage holders without the daughter, but they want to take advantage of the higher gift amount allowed with no tax consequences for property transfers to children(2013), will recording the transfer/gift to the daughter effect the mortgage, or will it be fine if it is in the living trust (perhaps with the deed-holder being the living trust, stating that the transfer will occur when the mortgage has been paid off). I guess the question is whether or not the ‘gift’ would be protected this year in terms of taxes even though the actual transfer will occur once the mortgage is paid off as stated in the living trust. The other question is whether it should be recorded now, or later, and what the implications might be…
Juliana Tu August 17, 2013 at 9:27 pm	I am not sure which question your are following up to and I am afraid that the question you left is a little confusing but from what I gathered your question is whether a transfer of the property will affect the mortgage. If this is the question my answer would be that if the transfer is to someone who is completely not on the loan it may accelerate the loan. Lenders have written into their mortage documents clauses that state that they have the right to call the loan due if the property is transferred out from the original owners. They normally make an exception when the transfer is from the individuals to their own Trusts in which the individuals remain as the Trustees of this Trust, but any other transfer, for instance to a daughter or a relative, in which the total ownership is transferred out, may cause them to ask you to payoff the loan, if they should find out.
I hope I was able to some gudance. You actually need to your Lender or Loan Officer this question and also obtain financial advise from your CPA who will be doing the taxes for you. We are a settlement services company dealing with the sale of real estate and do not give legal or financial advice.
Kevin June 26, 2013 at 1:42 pm	I want to transfer several properties to an already established LLC. Do i have to pay transfer tax on this transfer? Also several of these are older properties, if I need to how would I assess the transfer tax if I don’t have a purchase price. I am not selling the properties to the LLC, just transferring.
Juliana Tu June 26, 2013 at 7:00 pm	To transfer your properties to your own LLC you can claim the following exemption, to be put on the transfer Grant Deeds: “The grantors and the grantees in this conveyance are comprised of the same parties who continue to hold the same proportionate interest in the property, R & T 11925 (d).”
Then you won’t be assessed a transfer tax or get your property taxes re-assessed.
megan June 8, 2013 at 7:21 am	We live in Riverside County and just recently went through a short sale. There was a 1st & 2nd on the home. Both lenders approved the short sale. The 2nd recorded a “Full Reconveyance” while the 1st filed a “Documentary Transfer Tax Affidavit” with other marked and the comment: Conveyance from (Mortgage Co Name) for Contract to the grantee previously recorded.
What is the difference? And would there be an exemption for the transfer tax? I am assuming we would be responsible for the tax, if applicable- yes?
I am so confused as to how this will impact us – tax-wise.
Juliana Tu June 8, 2013 at 8:16 pm	The recording of a Grant Deed in Riverside County requires a “Documentary Transfer Tax Affidavit”. It is a form that is attached that states whether or not a Transfer Tax is paid or not. Not actually seeing the document that you described I am sure your Escrow Company and Title Company recorded the correct document with the correct form and marked the Transfer Tax correctly. There is no exemption for the transfer tax as this was a sale transaction. You would have paid for the transfer tax through the escrow closing costs. Please check your final closing statement.
As to the “Full Reconveyance” that was recorded on the 2nd loan, that is the document that states the 2nd loan was paid off. The “Documentary Transfer Tax Affidavit” has nothing to do with the 1st loan that was paid off. It is an attachment to the Grant Deed in which the ownership was transferred to your Buyer in your short sale. The tax impact is not in the Documentary Transfer Tax; it is in how you will declare your income taxes at the end of this year due to your short sale.
Shamus July 11, 2014 at 11:47 am	On a short sale, does the exemption for “Conveyances Where the Liens and Encumbrances Are Equal or More Than the Value of Property and No Further Consideration is Given” not apply so long as the Grantor does not receive proceeds in excess of $100? Thanks.
Juliana Tu July 11, 2014 at 3:29 pm	On a short sale, transfer tax does apply because the buyer is actually purchasing the property and bringing in funds to do so. This exemption that you mentioned would not apply to the short sale. Transfer tax exemption is determined on whether this is a real sale of the property from a Seller to a Buyer. It does not have anything to do with whether the seller got any money out of the sale after his loans were paid off.
Alison Chau June 3, 2013 at 4:14 pm	Would you please tell us, do we have to pay the “Supplemental Tax “? Because if we do not pay the tax, the Tax Department will charge us penalty, so please reply to us a. s. a. p. Thanks very much !
Juliana Tu June 3, 2013 at 6:38 pm	With respect to the supplement taxes that you were billed, I recommend you pay those before the due date first so that you don’t incur a penalty. Meanwhile, do contact the County Assessor and find out why they assessed the supplement taxes and how you can petition them to take it off and reimburse you the funds.
Alison Chau June 3, 2013 at 4:08 pm	Your answers are very good and very clear, however, I do have one question on my property in Orange County, that is ” My husband and I and my son, we purchased a 4-unit small apartment in 1984 and we took “joint tenancy” title, we live in one unit and the rest were rented out until now. Last year, my husband was passed away and I did report to the Assessors Department and shown my husband death certificate at the same time, however, this year, we receive a “supplemental tax” bill, but for my knowledge, the property title transfers between parents and child is Tax Exempt, therefore, please tell us how to get this problem resolved ? Thanks very much !
Juliana Tu June 3, 2013 at 6:37 pm	I don’t know why you got a supplement tax bill unless it was because the Affidavit of Death of Joint Tenant that you filed to proclaim that your husband passed away was done incorrectly. Since I don’t know what paperwork you filed and even if you filed it correctly, I can only recommend that you call the Orange County Tax Assessor’s office to find out why they did a supplement bill for you and how to petition them to remove it!
Anthony May 20, 2013 at 1:15 pm	Hi, when my parents purchased their home, they placed it in my uncle’s(mother’s bother) name for credit reasons. They paid to him the mortgage and he in turn paid off the home loans. The home is now fully paid and no money will be exchanged between my parents and uncle.
They now want to move title in the property from my uncle’s name to their name. What exemption should they use to avoid transfer tax and property tax re-assessment? Thank you for your assistance!
Juliana Tu May 20, 2013 at 6:01 pm	With respect to the transfer of the property between your uncle and your parents, the transfer tax exemption would be “This is a bonafide gift, transfer between siblings, and there is no consideration involved, R&T 11911.”
Be sure you also complete a preliminary change of ownership form and on the form you will probably have to hand write it in that this is a transfer between siblings.
Whether or not the County Recorder and the County Tax Assessor will accept this exemption would be up to them. All we can do is recommend how to do it, but it is up to the government agencies to make the final decision. If they do not accept, then you will have to petition them. There is never any guarantee that they will accept that it is a “gift” and they may require some sort of proof that you qualify. You can try it and then see what the County Recorder and Tax Assessor say.
Kris May 9, 2013 at 9:20 am	Hello, my property is in Riverside County. I currently deeded as a single man. I am now married and would like to have my wife added to the deed. What R&T and exemption statement would be used for this? thank you
Juliana Tu May 9, 2013 at 9:50 pm	The Transfer Tax exemption that you can type on the deed to add your wife on title would be “This is a bonafide gift, addition of a spouse, and there is no consideration involved, R&T 11911″.
Lauri May 3, 2013 at 2:33 pm	In 2001, my Aunt (who is now deceased) purchased a home in Southern CA, with my spouse and I. All three of us are on the title deed. My aunt paid cash for the house. Since then, we have been making house payments my aunt, rather than a bank. We have always been responsible for paying the state taxes on the home, as well as the homeowner’s insurance. After my aunt passed away in 2008, her daughter inherited her entire estate. Since then, we make our payments to her daughter, through a trust that was set up in my aunt’s name. My cousin has asked us to pay off the loan, so we have had to refinance with our own bank. Because the title will be changed to have my Aunt and cousin taken off the title, how will this effect our property taxes? Will our property be reassessed, even though we have been living in and paying the taxes on it for several years?
Juliana Tu May 3, 2013 at 5:45 pm	Whenever there is a change in the title ownership there is a possibility that the County Tax Assessor will re-assess the taxes. The only possibility that a transfer would not generate a tax reassessment is if you and your husband owned the property with your aunt in “Joint Tenancy”. Then you can do an Affidavit of Death of Joint Tenant” and attach an original Death Certificate. This will establish that she has passed away and because she owned it in Joint Tenancy with you, it is possible that the property taxes will not be re-assessed.
If you owned the property with your Aunt and she had put her share in a Trust, then your cousin would now own the property as Successor Trustee of the Trust. In order for her to come off title and grant you the property there is a definite possibility that there could be a tax re-assessment because the transfer from the Trust to you may not be considered a “gift” by the Tax Assessor.
So it really depends on how the 3 of you owned the property. If you are doing a refinance with your bank to pay off your aunt’s Trust, the bank should be opening up an escrow and you can ask the escrow officer the same question. I regret that I do not have sufficient information on the present condition of the title to the property to give you a better answer!
willow healy April 16, 2013 at 3:26 pm	Hello,
My husband and I bought our home while we were unmarried, I hold 30% ownership and he holds 70 %. Last month we married and we would like to change the proportionate ownship to 50/50. The value of the property remains the same. If we file a deed of trust with this change would we own any county taxes?
Juliana Tu April 16, 2013 at 5:16 pm	My answers below are predicated on the assumption that the property is in the State of California only. Other states have different government regulations that we cannot comment on.
When you are changing ownership percentages (from 30/70 to 50/50) there is a good chance that the County Tax Assessor will re-assess the property. If you were to change it from two separate individuals owning 30/70 to both of you together as “husband and wife as community property” owning 100 % then there is a lesser chance of it being re-assessed as the Assessor’s office will look at it as a change due to marital status. There is a difference between owning the property – “John Doe a married man and Jane Doe a married woman, who are married to each other, each as to an undivided 50% interest as their sole and separate property” and
“John Doe and Jane Doe, husband and wife as community property” (with no mention of percentage interest) My best advice is that if you have any questions, you should call the Assessor’s office where the property is located directly first and get their feedback Our answers here are given from 30 years’ experience in the escrow field, but ultimately, we are not the government agency! I hope this is not too confusing!
Chuck April 1, 2013 at 10:18 pm	8 months ago my brother and I purchased property together. We bought the property for $500K. He paid for 250K (50%) and I came up w/ the other 250K. However, I ended up on title as a sole owner because the seller(BANK) did not want to alter the initial purchase contract.
Now I want to deed 50% of the property to him. Should we to pay the transfer tax on 250K? and make it sale of 50% interest or is there a way we can be exempted?
Juliana Tu April 2, 2013 at 10:13 am	My answers below are predicated on the assumption that the property is in the State of California only. Other states have different government regulations that we cannot comment on.
To transfer part of the ownership to your brother under an exemption of transfer tax and re-assessment, you can do a Grant Deed from you (Grantor) to you and him, as Joint Tenants (Grantees), and put the following exemption after the legal description and property address: “This is a bonafide gift, transfer between brothers, and there is no consideration involved and the Grantor received nothing in return, R&T 11911”.
Attach a preliminary change of ownership form and on the bottom of Page 1, hand write in that “this document is a transfer between brothers and there is no consideration involved”. You can cross out Part 2, 3, 4 on page 2 and sign on the Certification part on the bottom of page 2.
If they don’t accept it, then they will ask you to pay transfer tax on the portion that was granted over and the property will be re-assessed. But at least you tried!
Mike April 1, 2013 at 11:07 am	I filed a quitclaim deed to take a ex-girlfriend off of a property and now want to add her back on. She has always been on the mortgage. Should I simply file another quit claim deed transferring ownership from me, to us both as joint tenants. Should we use “Consideration less than $100 – R&T 11911.” or as a gift? There was no consideration for either transfers. We are in Sacramento County, California.
Juliana Tu April 1, 2013 at 12:00 pm	Regarding putting your ex-girlfriend back on the property, yes, you would file another quitclaim deed with you as the Grantor and you and her as joint tenants as the Grantee, thereby reversing the process that you did previously. You can use the “This is a bonafide gift and there is no consideration involved, R&T 11911” as the exemption verbiage. Be sure you also attach a Preliminary Change of Ownership form with this new Quitclaim Deed when you record it.
Tiffany March 28, 2013 at 2:37 pm	I’m going to purchase the house from my sister. The purchase price is $485K and loan amount is $250K. I’ll payoff the loan on my sister’s house and the rest of money I’ll pay her later.
- Is Grant Deed the right form for me to transfer the ownership? What’s sentence to write on the grant deed ?
- How to fill out the preliminary change of ownership?
Now, the house value is less than the house value when she bought.
Juliana Tu March 28, 2013 at 5:07 pm	My answers below are predicated on the assumption that the property is in the State of California only. Other states have different government regulations that we cannot comment on.
If you are purchasing the property from your sister, then it is not a transfer without consideration so the exemption from transfer tax and re-assessment would not apply. You would use the Grant Deed form and insert the transfer tax, which is based on $1.10 per 1,000 of the purchase price, which would equal to $533.50. If the property is located in a city which has a City Transfer Tax, then you need to take that into account also and add that on the deed. To find out if the property is in a city with a transfer tax, go to this part of our website: The preliminary change of ownership is 2 pages and you would fill in the blanks and answer their question. For instance, in Part 1 of page one, all the boxes are to be checked “no”. On Page 2 you would answer the questions in each part and then sign on the bottom.
Since this is a purchase, I really recommend that you open an escrow transaction for the transfer of this property because there are so many things that a Buyer and a Seller have to watch out for. I am sure you can find one in your area who can help you set things up correctly and carry it through. It is important that all the government, city, and county laws and regulations are followed and your escrow officer should be able to help you with all that!
David March 24, 2013 at 10:11 pm	Juliana Tu:
The mortgage on our San Diego County property is in my name only, but the deed and title are in both our names. I’m in the process of doing a short sale. So as not to ruin my wife’s credit so we can purchase another property in her name only, I want to remove my wife’s name from the deed and title. Which form would be more applicable for my situation: quitclaim deed or inter spousal deed? If I should use the quit claim deed, what explanation would I use to avoid any tax reassessment – as there will be no consideration exchanged. Also, where on the quitclaim deed would this explanation go? Would appreciate your great help. If you think the inter spousal deed would be the better choice, where do I find one, and how would I fill it out including, if needed, what explanation would I use for that form? I’m pressed for time so want to do everything correctly the first time so that I don’t get my document(s) rejected. Thanks for listening and your help!
Juliana Tu March 25, 2013 at 3:20 pm	To remove your wife’s name from the property on which you will be doing a Short Sale you can use a Quitclaim Deed. Your wife would be the Grantor, and you would be the Grantee, for example: “Jane Doe a Married Woman and spouse of Grantee herein”, quitclaims to “John Doe a Married Man as his sole and separate property”.
In the middle of the form, after the property address and legal description, you would type in the following language:
On the preliminary change of ownership form you would check on page one Part 1 A. Cross out Part 2, 3 and 4 on page two and sign on the bottom of page tow under “Certification”.
Jae July 22, 2013 at 10:34 am	Juliana Tu:
I need some help here, in 2009 I bought a house using my brother as a cosigner. We agreed that I would pay all fees, closing cost and the mortgage with my money, since I would be the only one residing in the residence. My brother only served as the cosigner for the loan, his name is also on the title. This is what the title reads, ” my name, a single women and my brothers name, a single man, as joint tenants.” Now I’m getting ready to sell the house but am wondering if there will be any capital gain taxes that I or he would have to pay. After all fees and escrow payed, I will only be profiting around 80,000 more or less. My other dilemma is that back in 2011, my brother let his house go into foreclosure, so in fear of the bank coming after my house which he is the cosigner for, we had a quit claim deed drafted meaning signed by both my brother and I and notarized but I have kept the deed and has not yet recorded it. My question is, would it be best to get this deed recorded first then I can sign all the necessary paperwork to sell by myself? And if I do this, will my brother have to pay any taxes such as gift tax, etc. Will recording my quit claim deed now delay the escrow process. Closing of escrow is only 10 days due to a cash offer to buy my house, as of today we only have three days left. I’m trying to determine which route would be the best for us, since I do not want him to suffer any tax consequences since he has 0% interest in the house. Sincerely,
Juliana Tu July 22, 2013 at 11:08 pm	One of the questions that you have asked I am unable to answer. Capital gains tax issues are best answered by our CPA or financial consultant, not by an Escrow Officer, and that is what I am. I don’t know your tax or financial situations so to give you any sort an answer without knowing your situation would do you a lot of harm.
However, as to your other question, since you have a quitclaim deed from your brother you should ask the Escrow Officer handling your transaction to get that recorded before they record the deed to the Buyer. It shouldn’t delay the transaction. You should let your Escrow Officer know that your brother has no interest in the property and that you are the actual Seller and will be 100% responsible. Work with your Escrow Officer and explain the situation right away. In a short escrow it is difficult to change anything without affecting the transaction and this really should not have been left for the last minute.
As you have an ongoing transaction I don’t want to suggest anything as I don’t have the all the information with regards to your transaction. My best advise is for you to talk to your CPA and also your Escrow Officer immediately! They can help you file the necessary paperwork to show you as the sole owner, but you need to make sure this is what is best for you and your brother.
Richard Moore March 21, 2013 at 9:14 pm	My wife is the trustee and current beneficiary of an irrevocable trust which consists of a house and property in Santa Cruz county; the title to the property is still in the name of the grantor (and original trustee) and all successor trustees, of which my wife is the last. My wife wants to remove the property title from the trust to her own name (via grant deed). I believe she should be exempt from Transfer Tax but am not sure which exclusion applies. My wife has filed and recorded all the necessary forms as successor trustee and is considered to be the only beneficiary by the county tax department.
Juliana Tu March 22, 2013 at 6:59 pm	Your wife, as Successor Trustee of the Trust, would sign a deed with her name as Successor Trustee of the Trust (Grantor) to herself as Grantee. The exemption you can type on the deed is “This conveyance transfers the Grantor’s interest in the Trust to herself as an individual and there is no consideration involved, R&T 11911.”
However, that being said, please note that disclosure is always made that whether or not the County Recorder and the County Tax Assessor will accept this exemption would be up to them. All we can do is recommend how to do it, but it is up to the government agencies to make the final decision. If they do not accept, then you will have to petition them. There is never any guarantee that they will accept that it is a “gift” and they may require some sort of proof that you qualify. You can try it and then see what the County Recorder and Tax Assessor say.
DIANE GREENE March 15, 2013 at 8:12 am	My husband, myself and one business partner are members of an LLC and own an investment property together, with the title in the name of the California LLC. My husband and I would like to Quit Claim this property from the LLC to our names only. Our business partner agrees with the new titleing. What names need to be on the Quit Claim and who needs to sign? How can we avoid a transfer tax.
This is such a great site! Thank you for any advice you can give.
Juliana Tu March 16, 2013 at 3:06 pm	Hello and thank you for visiting our Viva Escrow website and leaving a question. We are glad you like our site. From your question I am concluding that you are transferring the property totally out of the LLC and putting it in the individual names. This would require the LLC to be the Grantor and then you and your husband and your business partner as individuals as the Grantees. You should also put down how much percentage you and your husband own and the percentage owned by the business partner. For instance, as a sample only: “XYC LLC hereby grants to John Doe and Jane Doe, husband and wife as community property as to undivided 50% interest; and James Brown, a single man as to undivided 50% interest, Tenants in Common”. All signatory members of the LLC would need to sign the Deed.
To avoid transfer tax, the transfer tax exemption you would put on the deed would be “The grantors and the grantees in this conveyance are comprised of the same parties who continue to hold the same proportionate interest in the property, R & T 11923 (d).” However, there is always a possibility that the County Recorder and Tax Collector agencies may determine that this is a dissolution of a partnership and if so, may not allow the exemption. Submit the Deed and the preliminary change of ownership to the County for recordation this way and if they disallow it, they will let you know and perhaps you will need to petition them to change their minds.
Nikkie March 11, 2013 at 11:30 am	I need to add my husband to my house deed by use of a quitclaim deed in Sacramento, California. I know that this is exempt, but I can’t find an R&T exemption code for it. What do I put?’
Juliana Tu March 11, 2013 at 3:05 pm	The Transfer Tax Exemption code you can use in an addition of a spouse is as follows: “This conveyance confirms the addition of a spouse as community property interest, and there is no consideration involved, R&T 11911.”
You would put the verbiage in the middle of the quitclaim deed after the property commonly known as sentence.
Blake March 7, 2013 at 10:04 am	This is a great site! I purchased property in Orange County with a friend, 50% co-owners. We put title in the name of my LLC in which I am the only member. We want to now transfer title from that LLC to my new LLC (different name, but I am also the only member) and to my friend (not part of the LLC), as tenants in common. Would it be best to write “Grantors and Grantees of this conveyance are comprised of the same parties who continue to hold the same proportionate interst in the property” since it is the same owners in the same percentages or since my friend was not originally on title to the property, even though he is 50% owner per our written agreement, would that not be the best option? Thanks for any suggestions.
Juliana Tu March 7, 2013 at 11:11 pm	You can insert the transfer tax exemption – “Grantors and Grantees of this conveyance are comprised of the same parties who continue to hold the same proportionate interest in the property”, and submit the Deed in this way to the County for recordation. From your description of the chain of events, this would be a true statement.
Whether or not the County Recorder and the County Tax Assessor will accept this exemption would be up to them. If they do not accept it, then you will have to petition them. There is never any guarantee that they will accept an exemption and they may require some sort of proof that you qualify. You can try it and then see what the County Recorder and Tax Assessor say. My best advice is that if you have any questions, you should bring them up directly with the government agencies by calling them with your scenario and getting an answer from them directly. Our answers here are given from 30 years experience in the escrow field, but ultimately, we are not the government agencies! I hope this provides you with some direction!
vadim February 27, 2013 at 1:10 pm	hi, my father and i bought a $120,000 lot. he contributed $50,000 and I – $70,000. his name is on the title, he and i are tenants in common, 42% his and 58% mine. i am giving him a promissory note for $50,000 and he will transfer the title to me, as a quitclaim deed. is this a transfer between parent and child or will there be tax implications for the transfer of title?
Juliana Tu February 27, 2013 at 8:27 pm	My answer below is predicated on the assumption that the property is in the State of California. Other states have different government regulations that we cannot comment on. Although a transfer between you and your father is considered a parent-child transfer and would normally be exempt from transfer tax and re-assessment, your case is a little different. You are actually purchasing his percentage share, so I think the County Recorder and County Assessor will not give you the benefit of the exemption. You will probably need to pay transfer tax on the 42% you are purchasing and there will be a re-assessment of property taxes. I suggest that you call the County Recorder and/or Assessor’s office to confirm this.
Carol February 27, 2013 at 9:21 am	Hello, We are adding an unrelated person to our title for loan purposes. It will be a 1% security interest. The house is upside down and there is no money changing hands. We would like to try to do this tax exempt. We understand the the decision is up to the county (Placer in CA). We are not sure if we should use the bonafide gift clause or the clause that states “the value of the property in this conveyance, exclusive of liens and encumbrances is $100 or less and there is no additional consideration received by the grantor”. We will be using a quit claim deed. Can you please give us your opinion? Thanks
Juliana Tu February 27, 2013 at 8:26 pm	Hello, thank you for visiting our Viva Escrow website and leaving a question.
When you transfer a 1% interest and the percentage to be designated to all the owners will be reflected on the transfer deed, the County Recorder will usually ask that a transfer tax be paid on that percentage transfer. You can calculate it on the value you think the property is worth now, minus the liens that are on it. If the house is upside as you stated, there really is no value so the exemption that says “the value of the property in this conveyance, exclusive of liens and encumbrances is $100 or less and there is no additional consideration received by the grantor, R&T 11911” would fit the best. The bonafide gift clause works best when the Deed does not reflect a percentage interest designation for the new owners.
That would be my opinion and you won’t know if it will be rejected by the County Recorder and County Assessor until you put it on the Deed and send it in for recording!
jennifer February 20, 2013 at 11:51 am	HI , I want to add my mom to the title, what section listed on the Documentary Tranfers Tax Affidavit should I mark, thanks.
Juliana Tu February 20, 2013 at 7:30 pm	My answers below are predicated on the assumption that the property is in the State of California only. Other states have different government regulations that we cannot comment on.
To add your mother to title you would use the following exemption typed onto the Deed: “This is a bonafide gift, transfer between parent and child, and there is no consideration involved, R&T 11911″
Please note that a Documentary Transfer Tax Affidavit is only needed for certain transfers in certain counties. Not all counties or cities of California require them. You would mark Part 1 “C” on the first page of the Preliminary Change of Ownership form
Jennifer February 20, 2013 at 7:53 pm	Thank you , the house is in Riverside County.
Michael G. Thompson February 2, 2013 at 10:33 pm	Hello. Does an executor of my deceased fathers’ will have control over my fathers portion of a Joint Tenancy Grant Deed entered into with him, my mother (also deceased), and me. The language describing the grant runs:
‘ (my father) AND (my mother), HUSBAND AND WIFE AS JOINT TENTANTS hereby GRANT(S) to
(my father) and (my mother), Husband and Wife and MICHAEL G. THOMPSON, A single man, ALL AS JOINT TENANTS
The real property in the city of……(the residence)
“THIS CONVEYANCE CHANGES THE MANNER IN WHICH TITLE IS HELD, R & T 11911.” ‘
This deed for a California residence has not yet been updated to account for my folks passing. here are no financial emcumberances other than the mortgage.
The executor is insistant that a brother of mine is to be added by my father will direction as half owner ( with the usual legal threats if I dont comply). I have come to believe that being the sole tenant survivor with no deed updates leaves me as sole deed holder. True?
Juliana Tu February 3, 2013 at 2:43 pm	If you were on the deed with your parents as Joint Tenants, then you would be the surviving owner of the property and could conceivably claim that the property belongs to you solely. That being said, you have to take it into account that your parents did leave a will and the will should state their wishes on how to divide their assets upon their death, whether or not it is only your name that is on the property ownership now. It depends on whether the will mentions this property or not and if the will was written before or after the Deed to put your name to the property was signed.
As I tell all the other people who leave a question on my site, when it comes to questions that have legal implications I strongly recommend that you get your own legal counsel in this matter. In your case only an attorney versed in probate law can give you the advice you seek.
MICHAEL G. THOMPSON February 4, 2013 at 12:43 am	Thank you for your helpful reply. In actuality, my folks granted joint tenancy to me on the deed in 1999. My mother died intestate in 2009. My fathers will was made out in 12/12/2012 (he passed on 12/14/2012).
My mother told my father just before her death (who then relayed to my two brothers afterwards) it was her desire for me to take possession of the house ( which still has a mortgage). Years later, my father told us three sons at his hospital bed that his intention was to split the house between one of my brothers and me. But arent the spoken exchanges heresay, given that my father had five years to either: quitclaim to my brother (which converts the joint to a common tenancy and assessment), or ask if I would agree to granting my brother as joint tenancy. Instead, I am left with an executor who seems to be coercing me into entering my brother on he deed by stick and carrot when I need not. When I soon submit affidavits of death with certificates to the County Assessor, ought not my single name on the deed by virtue of joint tenancy sole survivorship close the issue?
Juliana Tu February 4, 2013 at 7:29 pm	Yes, you can file the Affidavit of Death of Joint Tenants for your mother and father and the property may then show that you are now the sole owner, but will this close the issue? When it comes to money and assets, even close familial relationships can be broken. If you keep your ownership of the property and refuse to deed one-half to your brother, will the Executor of the Estate file a lawsuit against you on behalf of the other beneficiaries of the Estate? Will they take this matter to court? Will all the money and aggravation spent be worth the while? These are all questions you must ask and then seek legal counsel with an attorney.
Jan B January 24, 2013 at 10:12 am	I own an apartment building with my husband in our California Revocable Living Trust, but for asset protection purposes want to transfer it to a California family partnership, in which my husband and I will still have the same ownership (50/50). Would we use the R&T 11911 Exemption Code on the transfer deed? And could this type of transfer cause a property tax re-assessment? Thank you for your time and help. Regards, Jan
Juliana Tu January 24, 2013 at 10:04 pm	When you are transferring from one legal entity to another in which the parties own the same proportionate interest, you should use the following: “The Grantors and the Grantees of this conveyance are comprised of the same parties who continue to hold the same proportionate interest in the property, R&T 11923 (d)”. When there is an ownership transfer there is always the possibility that (1) the County Recorder does not agree to your exemption and therefore will ask you to pay transfer tax, and (2) the County Assessor will re-assess your property. If they do not accept your exemption and they re-assess your property you will need to petition them to re-evaluate their decision and perhaps they will ask you to show proof that the 2 entities are owned by you in the same proportionate interest. By the way, on the preliminary change of ownership form be sure you check “yes” on item K under part 1 of page one. Then just put an “X” mark across the second page above the signature certification box. You won’t need to complete Part 2, 3, or 4 since those questions won’t apply.
Sam January 22, 2013 at 2:34 pm	Hi,
When my wife and I bought our home I did not qualify to be on the loan. As a result my cousin helped us out and was added as a non-occupying co-borrower. 4 years later (a few months ago) I was able to refinance the house and got my cousin off the loan and added myself onto the loan. I received a call today from out of the blue from my title company telling me i may owe a transfer tax. Can I claim exemption R&T 11911 (Bona Fide Gift)? The title lady was somewhat clueless when I started asking her questions as she said she is from Michigan and does not have knowledge of CA laws. Thanks in advance.
Juliana Tu January 22, 2013 at 5:48 pm	Hello and thank you for leaving a question on our Viva Escrow website.
When we do a refinance transaction the Lender normally wants to see whoever is on the property qualifying for the loan. Therefore, when you got your cousin off the loan and put yourself on, there should have been a Deed in that transaction that reflected the new owners of the property as your wife and you only. The payment (or non-payment) of Transfer Tax should have been reflected on that document, and you can claim an exemption of said transfer tax under R&T 11911 as there was no consideration and value to the deed transfer document. What surprises me is that you say you did this refinance a few months ago and you are only now getting a request for a transfer tax to be paid? The insuring Title Company/Settlement Services company should have taken care of this issue when they finalized your refinance transaction. Was the Deed transferring your cousin out of the ownership and putting you on not done in your refinance transaction? I am sorry the title lady was clueless; as all states have their own laws, rules, regs and standards of practice, I would never handle a transaction in a state in which I had no knowledge of said laws.
Anyway, the answer to your question is that yes, you can claim it is a “bonafide gift, no consideration involved” under R&T 11911. Mind you, the request for exemption is a “request” and the County Recorder and County Tax Assessor have to determine that they find your request acceptable. If they accept it then you don’t need to pay transfer tax and there will be no re-assessment of the property tax values.
Sam January 23, 2013 at 10:15 am	The time lapsed was a surprise to me also, I’m guessing it’s an oversight by the title company. Yes the Deed transferring my cousin was done in the refinance transaction, the loan we have now is strictly under my wife and I. I will go ahead and request for the exemption and hopefully it will fly. Thanks so much for your insight.
Norma January 21, 2013 at 9:53 pm	My boyfriend and I have split up. He has indicated that we sign a grant deed but it states “This conveyance is a transfer without consideration and is a gift, R & T 11911. What is this R & T 11911? This is not a gift. I originally purchased the house then put him on title now want to take him off. Please explain this R & T form.
Juliana Tu January 22, 2013 at 10:25 am	R & T 11911 is the State of California’s Revenue and Taxation Code, section 11911. All transfer of ownership deeds requires the payment of Documentary Transfer Tax to the County Recorder at the time of recording of the document. Certain cities may also charge one. When you are not actually doing the Deed because it is a purchase, but is a transfer without consideration, the County Recorder allows you to type on the deed that you are requesting a transfer tax exemption based on that R&T 11911 Code. If you don’t claim this exemption then you have to put down a value for the transfer of the ownership and pay transfer tax on that value. In addition, the County Assessor’s office will also re-assess the property to its current market value so your property taxes may increase. In your case, his taking his name off the title is a form of “gift” as there is no value attached to it. You can claim this exemption and hopefully, both the County Recorder and County Assessor will agree to it.
john Wilsom January 20, 2013 at 1:07 pm	I am in the process of getting a divorce in orange county california. My wife signed an interspousal trust deed conveying all rights community or otherwise to me as the seperate and sole owner. Does she have any right to the property or profits once divorce is final
Juliana Tu January 25, 2013 at 9:54 pm	If your wife signed an interspousal quitclaim deed it means she gave up any community property interest that she might have had to that asset. However, nothing is ever set in stone and depending on when that deed was signed and how contentitious the divorce might be, she might still try to claim her share of community property interest for the time period after she signed the deed if, for instance, community property funds were used to upkeep the property after she relinquished her interest. We are not attorneys and are not in a position to give out legal advice, especially if there is a pending divorce. Please do consult with your attorney with regards to this matter!
mary January 12, 2013 at 12:45 am	I need to remove by brother interest in property we share . Do I use grant deed or quick claim to remove his name ? Do I type this as an exemption as followed: “This is a bonafide gift, transfer between siblings and to release his interest , with no consideration involved, R&T 11911.” the property nothing owed on it. This tax under prop 13 for the property.
Juliana Tu January 13, 2013 at 3:00 pm	You may use either a Grant Deed or a Quitclaim Deed. The difference is that in a Grant Deed your brother knows the property he is granting and he is granting all his interest past, present and future, including any interest obtained after he first originally purchased the property. In using a quitclaim deed your brother is stating that he doesn’t know anything about the property and he is simply giving up any past present and future interest he may have or claim to have on the property.
Using either is fine but it just depends on how involved the person was in the running of the property to begin with. The transfer tax exemption that you stated is fine.
julie January 6, 2013 at 6:19 am	I would like to quitclaim deed from family living trust to individual revocable trust.
What wording should I add to avoid transfer tax?
Juliana Tu January 6, 2013 at 4:12 pm	Thank you for visiting our Viva Escrow website and for leaving a question regarding transferring from a family living trust to an individual trust.
To answer the question correctly depends on the answers to the 2 following questions:
Who are the trustees of the family trust?
Who is the trustee of the individual trust?
If you are the sole Trustee of the Family Trust and you are transferring to your own personal individual trust then you can do a deed from the one trust to the other.
The exemption that you can use would be a combination of 2 exemptions: “This conveyance transfers an interest out of a living trust and into a new trust and the grantors and grantees are comprised of the same parties who continue to hold the same proportionate interest, R&T 11911 and $&T 11923(d).”
If you are not the sole Trustee of the family trust and you are transfering it into an individual trust that you are not a trustee of at all, then the exemption given may not work. You may also need to transfer it first to the individual and then do a second deed from the individual to the individual trust. No matter what, scenarios like these require you to confirm with your Trust Attorney that you are doing the correct thing. The function of a Trust is to set up asset protection so you want to make sure you are doing the right protection for that particular asset and only your financial or legal counsel can tell you that.
So the answer to your question would really depend on the relationship of the two Trusts and the person(s) who is granting it out and receiving it.
I hope this answers your question, at least in part!
amy January 2, 2013 at 1:06 pm	I am wondering..my friend passed away and left me his condo (located in San diego county) in his trust..When the quit-claim is completed to transfer the property over to me…will my property taxes increase..or will they stay at the same level as when he purchased the condo in 1987? Also..there is no mortgage on the property. Thank you…amy
Juliana Tu January 2, 2013 at 3:15 pm	Proposition 13 states that property taxes will remain at the assessed value when the owner first purchased the property. However, if there is a subsequent transfer the County Assessor has the right to re-assess the property at its current market value, even if there was no consideration involved and there is no mortgage on the property. So I guess my answer to you would be – Yes, there is a definite possibility that the property taxes will be re-assessed to its present market value. Whether it is an increase or a decrease depends on the value originally assessed in 1987.
Matt December 26, 2012 at 8:44 pm	Hi – My aunt has a home and wants to add me to the deed to avoid probate and re-assesment. I talked with the accessors office, and they said that if I simply am added as a joint tenant, their is no re-assesment of property taxes. It was bought for 60K and is now worth 700K, so the property tax consideration is big. I live in california and I am married. My aunt would prefer that my wife not have any interest or claim to community property in the event of a divorce, which is unlikely, but necessary to consider for plannings sake. Do we need to enter both of the following on the paperwork to avoid re-assesment and create seperate property? In california, my understanding is that property recieved as a gift during a marraige are automatically seperate.—- 2.“This conveyance establishes sole and separate property of a spouse, R & T 11911.” 1.“This is a bonafide gift and the grantor received nothing in return, R & T 11911.”
Juliana Tu December 27, 2012 at 5:29 pm	Is this property in California? You didn’t mention. If it is, well, California is a community property state so no matter if you are getting an interest in the property by gift, you will still need to have your wife quitclaim her interest to make that interest fully yours. Whether it is done now, or in the future when you are selling the property or refinancing, it does have to be done.
On the grant deed from your aunt to herself and you as joint tenants, you can put that “This is a bonafide gift and the grantor received nothing in return R&T 11911” to bypass paying transfer tax and re-assessement,
On the quitclaim deed from your wife to you, you would put in “This conveyance establishes sole and separate property of a spouse R&T 11911”.
If the property is in a state other than California, then I recommend that you find a settlement agent in that state to ascertain what type of community property laws they have, if any. In other states there may not be a requirement that the spouse relinquish their rights to a property in order to establish the sole and separate rights of the receiving spouse. Every state is different.
Hope I answered your questions! Happy Holidays!
Frank Glaser December 22, 2012 at 4:29 pm	I need to quitclaim property with mineral rights in Orange County to a survivor trust due to death of my wife co trustee of our living trust. Need help with the following
Transfer tax is 0 correct?
R &T code I don’t know which to include 11930 or 11911 or?
I did include: This conveyance transfers the interest into or out of a Living Trust–Correct?
Also how to fill out explanation.
Juliana Tu December 23, 2012 at 3:56 pm	The Transfer tax exemption that you should use is: “This conveyance transfers an interest into a Living Trust, R&T 11930″. When filling out the preliminary change of ownership form, mark the one that states this is a transfer to the revocable trust on Part II. Since this is not the sale of a property, you can leave the second page blank and just sign the bottom of the second page. You won’t need an explanation, but you can hand write one in on the bottom of page one and say that this is a transfer to the Survivor’s Trust due to the passing of a co-trustee. That should clarify matters in case the County Recorder or County Assessor has questions.
Paul December 17, 2012 at 2:33 pm	When my wife and I bought our home in Riverside County, we had to use her mother’s credit in order to get a mortgage. Only her mother’s name appears on the mortgage and deed, although it was my wife and I who made every payment on the mortgage, including the down payment (and we’ve kept all documentation to prove this). We will be making the final payment on the mortgage next month and will want to have the property deeded to us after the mortgage is released. What is the best way to do this without triggering any gift tax or transfer taxes?
Juliana Tu December 17, 2012 at 5:04 pm	To transfer the ownership from your mother-in-law’s name, you will ask her to sign a deed from herself to you and your wife. On the deed you will claim an exemption as this is a transfer between parents and children. You would type the following on the deed: “This is a bonafide gift, transfer between parent and children, and the Grantor received nothing in return, R&T 11911.” You would claim exclusion from re-assessment from property taxes under Proposition 58.
John December 12, 2012 at 9:38 am	I bought a house that had to be purchased with cash because of the condition of the house. A freind lent me the money. We both went on title as tennant in common me 15%, and friend 85%. I have now made the repairs to the house, and am going to get a refi loan to pay off my friend. He will not be making any money off the deal. Would this qualify as a R&T 11921- Reconveyance upon satisfaction/payment?
Juliana Tu December 12, 2012 at 3:09 pm	The exemption clause: “This is a Reconveyance of realty upon satisfaction of a debt, R&T 11921” is more for deeds that are given in lieu of foreclosure by a Lender. However, this is the closest exemption wording so I would go ahead and put that on your deed. Should the County Recorder or County Assessor question this, then you may need to send them an explanation and possible proof.
I hope this answers your question! Thank you.
Nancy November 26, 2012 at 4:17 pm	If my father has to pay a big Gift Tax on Form 709, is there any way to cancel this quitclaim, or is that going to be a mess?
Juliana Tu November 26, 2012 at 6:08 pm	If you have to cancel the quitclaim deed that you recorded because of gift taxes, you will have to revert the property back and that means reversing the 2 deeds that were already done and recorded. It would be a bit of a mess.
I strongly suggest you contact your father and your CPA first to find out if he has exceeded his allowed lifetime Gift amount. Don’t do anything more until you check with your financial counsel!
Nancy November 26, 2012 at 4:16 pm	My father filed a quitclaim deed in February 2012 to transfer his house to me (Orange County, CA; house value under $600K). We filed the Orange County Assessor “Claim for Reassessment Exclusion for Transfer Between Parent and Child.” However, I don’t have a photocopy of that form we filed. The final quitclaim document has a box that states:
Documentary Transfer Tax: No consideration
Exemption (R&T Code):
Explanation: Inter-family transfer
Is this quitclaim okay with regard to being exempted from gift taxes to my father? Or do we need to rectify anything?
Since then, I had the property transferred by Grant Deed into a trust. That deed has a box that states:
Documentary Transfer Tax: $0
Exemption (R&T Code): This conveyance is exempt from DTT under R&T 11930, as it transfer an interest into a Living Trust. This is also a transfer for no consideration
Is everything in order, or do I need to fix anything?
Also, doesn’t my father still have to file a Federal Form 709 for Gift Tax, and can he claim some parent-child exemption there, too?
Juliana Tu November 26, 2012 at 6:01 pm	Thank you for leaving a question on our Viva Escrow website.
From what you have stated, I think you did properly complete the quitclaim deed in both instances and also filed the correct claim for reassessment exclusion. I don’t think you need to fix anything.
However, that being said, if you got a supplement tax bill on the property about 4 months after the first quitclaim was recorded, then something was not picked up correctly by Orange County Tax Assessor’s office and you will need to call them and see how it can be rectified. If you did not get a supplement tax bill, check the new tax bill that came out in October and see if the taxes are still approximately the same amount as it was before the 2 quitclaim deeds were filed. If they are, then you should be okay.
As to the filing of federal form 709, I can only refer you to his CPA for an answer to that question
Ron November 11, 2012 at 1:41 pm	I am successor trustee and beneficiary under my deceased aunt’s living trust. I want to take title to her Riverside County residence (then transfer to my living trust). Is the transfer of title from the LT to me (unmarried man) exempt from the transfer tax? What’s the best language and citation to use in the deed and/or affadavit?
Juliana Tu November 12, 2012 at 12:49 pm	Thank you for leaving us a question regarding a transfer from a Trust.
The transfer would be exempt from paying a Transfer Tax, but it might not be exempt from re-assessment from by the County Assessor. This is what you will need to do:
1. An Affidavit of Death of Trustee to establish the death of your aunt, which has to be signed by you and recorded with an original Death Certificate attached
2. A Deed signed by you as the Successor Trustee to yourself. The exemption language that most closely relates to your case would be “ This conveyance transfers the interest out of the Living Trust, R&T 11930”
3. A preliminary change of ownership and mark item # J 1.
4. A Riverside County request for Documentary Transfer Tax Affidavit: http://riverside.asrclkrec.com/forms/521P-AS4EX0%20DTT%20Affidavit.pdf
You can find all the forms stated above in the County of Riverside’s Assessor/County Clerk/Recorder website: http://riverside.asrclkrec.com/FO.asp
David October 22, 2012 at 8:39 am	My parents are transfering their home to themselves and me in joint tenancy with rights of survirorship for the purpose of avoiding probate. Is the transfer exempt from the documentary transfer tax as a gift under R&T 11911 since no consideration is being received by my parents?
Juliana Tu October 22, 2012 at 3:02 pm	The transfer of the ownership of the property by your parents to you and your parents is considered a parent/child transfer and is excluded from the payment of transfer tax under Proposition 58. You will need to add the following exemption wording on the transfer deed: “This is a bonafide gift, transfer between parents and children, and there is no consideration involved, R&T 11911.”
The County Assessor will send you a form to complete for this particular exemption after they pick up the recording of your conveyance deed.
I hope this answers your question. Do let us know if there is anything else!
John October 13, 2012 at 10:02 am	I am curious about writing the gift exemption declaration into the deed language itself. Is this necessary and required? We’ve completed the transfer tax affidavit, stating the proper exemption and the exemption exists whether you place it into the deed or not, no? We were advise that this would be sufficient. Thanks for your insight.
Juliana Tu October 13, 2012 at 6:06 pm	Hello, please see the response to the previous question left on this site. The exemption language on the deed is to advise the County Recorder and Tax Assessor why this exemption is requested. In counties where an Affidavit must accompany a deed in which an exemption is requested, completing the Affidavit should be sufficient. To find out which counties have this Affidavit requirement, please go to the following site on our website:
http://www.vivaescrow.com/for-your-convenience/faq/transfer-tax-affidavits
Matthew October 8, 2012 at 9:59 am	I am filing a quitclaim deed to transfer property into a LLC where I am the sole member. Does this qualify for an excemption (which one)? Thank you for your assistance and with helping so many others!
Juliana Tu October 8, 2012 at 12:23 pm	When you are transferring a property from yourself as an individual to your own LLC you should be able to qualify this transfer for exemption from transfer tax. You can use the following exemption:
“The Grantor and Grantee in this conveyance are comprised of the same party who continue to hold the same proportionate interest in the property, R&T 11923(d)”
It was a pleasure helping you and our clients. Let us know if you have any further questions.
Manuel Soares September 5, 2012 at 4:59 pm	I need to file a Quit Claim Deed in order to remove my brother from the property so that I may apply for a Modification program based on my income alone. Which excemption qualifies (if any)?
Juliana Tu September 5, 2012 at 8:52 pm	Thank you for leaving a question on Viva Escrow’s website.
To do a deed taking your brother from the property, I think you could type the following as an exemption: “This is a bonafide gift, transfer between siblings and to release the interest of a co-signer, with no consideration involved, R&T 11911.”
The verbiage does not fit the exemption verbiage exactly, but you can put it on and see if the County agencies would accept that. As always, it is up to the County Recorder and County Tax Assessor’s discretion if they will accept the exemption. You won’t know until you try it and if they have questions, they will contact you and let you know if they will not accept it.
Freckles August 30, 2012 at 10:51 am	We recently purchased a home using my parent’s credit. My husband and I paid the down payment and we’re paying the mortgage. My parents want to “quitclaim deed” the home into our name so that there would be no dispute as to whom the property belongs to (I have 3 siblings). Please suggest for me the tax exemption code I should use on the Quitclaim deed form and which letter I should check on the “preliminary change of ownership report.” Thank you so much for being a resource to us all!
Juliana Tu August 30, 2012 at 5:09 pm	Thank you for leaving your question on our website.
You can do a quitclaim deed and put the following exemption recital: “This is a bonafide gift, transfer between parents and children, and there is no consideration involved, R&T 11911”. On the preliminary change of ownership report you will need to check box “C”.
Linh August 27, 2012 at 2:49 pm	I purchased a home with a friend but my name was not on the loan nor it is on the grant deed. Now, I would like to add my name to the grant deed, which exemption should I use in order to add my name to the deed without having to pay for the transfer tax?
Juliana Tu August 27, 2012 at 7:34 pm	Thank you for leaving your question on Viva Escrow’s website.
To add your name on the Deed based on your circumstances the only exemption that you could use is: “This is a bonafide gift and the Grantor received nothing in return, R&T 11911”. Of course there is the question of gift tax which you and your friend would both need to check with your financial counsels.
I must warn you that there is no guarantee that the County Recorder and the County Tax Assessor will accept your exemption declaration. They may require some sort of proof that you indeed qualify for said exemption, perhaps a copy of checks that you used to buy the property together with your friend.
Unfortunately, I cannot counsel you on how the government agencies will view the transfers. All I can advise you is that this is a matter that you should bring up directly with the County Recorder and County Assessors’ office.
I am sorry I am not able to be more definitive regarding your matter but I thank you for leaving your question.
Joyce Duong August 20, 2012 at 10:52 pm	I purchased two houses with my uncle as joint tenants. Both of us are on the titles of the home. We would now like to split are investments and each get one house. We would like to remove each others names on the title of the houses. How can we do this so that there aren’t any taxes attached to this transaction?
Juliana Tu August 21, 2012 at 12:00 pm	Thank you for leaving your question on our Viva Escrow website.
With respect to you and your uncle removing your names from each other’s houses, you would do it by Deed, and you would put the standard exemption clause: “This is a bonafide gift and the Grantor received nothing in return, R&T 11911” on each deed. This is probably the only clause that would come close.
Whether or not the County Recorder and the County Tax Assessor will accept this exemption would be up to them. All we can do is recommend how to do it, but it is up to the government agencies to make the final decision. If they do not accept, then you will have to petition them.
I would suggest that you execute each Deed from both you and your uncle to the other party, and then take both deeds to the county recorder yourself for recording. That way, if they have a question, you can personally explain to them your intent and why it should be exempt from transfer tax and also from re-assessment of property taxes.
Dana August 15, 2012 at 2:26 pm	I am currently going to pay off a loan on my house, but only my aunt’s name is on the loan and title, I used her credit to purchase a home. Once I pay it off I would like to take her off the deed and put it under my name without a transfer tax, is that possible? If not how can I get around not paying a transfer tax?
Juliana Tu August 15, 2012 at 7:04 pm	Thank you for leaving your question on our Viva Escrow website.
Once you payoff the loan and you want to take your aunt off from the ownership of the property you can do the Deed from yourself and your aunt to yourself only, and try to claim exemption from transfer tax by typing the following exemption clause on the Deed: “This transfer is given to terminate the security interest of a co-signer and there is no consideration involved, R&T 11911”.
Submit the Deed together with the Preliminary Change of Ownership form with the box # H on the first page marked and hopefully the County and the Tax Assessor will accept it.
Let us know if you have any other questions! Thank you for checking us out!
russ haskell August 10, 2012 at 10:57 am	My wife and I own a condominium in Rancho Bernardo and hold the title as joint tenants with right of survivorship. For estate planning purposes we want to transfer the title to a revocable trust. We each have our own revocable trusts. The idea would be either to transfer each of our interests to one of the revocable trusts, or to transfer each respective interest to to each person’s respective revocable trust. Can you comment on the applicability of the California exemption and the language we should use in the conveyance(s). Thanks.
Juliana Tu August 12, 2012 at 5:13 pm	Thank you for your question left on the Viva Escrow website.
You can transfer your own individual interests to your own individual Revocable Trusts by using the same Transfer Tax Exemption verbiage:”This conveyace transfers the interest into a Revocable Living Trust, R&T 11930.” and it can be done on the same conveyance Deed.
However, you may want to check with your legal and financial counsel as to whether you should designate how much interest each Trust shoud have, whether it is 50% each or 70%/30% etc. The Trusts are looked upon as individual entities and as such, financial planning needs to be taken into consideration as to what happens when the original Settlors of the Trusts pass away and the Successor Trustees must deal with the disposition of this particular asset.
I hope this answers you question. Let us know if you have others.
Barbara August 3, 2012 at 9:27 pm	When our parents passed away, their estate/trust included our family home. I and my 4 siblings want to move the house out of the trust and provide a title for equal shares to each of us. If transferred from the trust to each child having a 20% share of the house, as a bonafide gift, would we be subject to any financial impact? The intent is to simply transfer title.
Juliana Tu August 5, 2012 at 2:50 pm	Thank you for visting Viva Escrow’s website and leaving a question.
The transfer of the property from the Trust to the Beneficiaries of the Trust (ie, the 4 children) should not have any adverse financial impact, but I am not the right person to ask. This has to deal with the financial situation of the Trust and the children and is best answered by their own qualified certified public accountant. Each person/entity’s financial situation is different. As Escrow Holders we are familiar on how to transfer the ownership of the property but we leave the financial aspects of the transfer to our clients’ own qualified legal and financial
Gloria Fu July 30, 2012 at 10:32 am	I lve in Washington but have a condo in San Francisco county and its title is under my Trust. Now I want to change title to a new trust with my husband. How should I do this? Should I quit claim it to our new trust? What forms or affidavit do I need to have it recorded?
Juliana Tu July 30, 2012 at 3:24 pm	Thank you for leaving a question on our Viva Escrow website.
I don’t know how your title trust ownership presently reads but I recommend that you do a two-step transfer as follows: (1) From the Trustee of your existing trust ownership to you and your husband as community property and then (2) from the two of you to your new Trust, naming you and your husband as Trustees of the Trust. You would need a preliminary change of ownership form and San Francisco Transfer Tax Affidavits for both deeds. It is important that you check with your own legal and financial counsel to make sure they concur. The reason for 2 deeds is it make it clear that the transfer from one Trust entity goes through the individuals first before it goes to the second entity Trust which has different Trustees.
Lihla July 7, 2012 at 7:55 pm	Hello, I am currently going through a loan modification and the bank asked me to do a “quit claim deed.” I purchased my house 7 years ago with my then boyfriend (we have never been married). I went to the county recorders office (in San Mateo county) and they told me that the reasoning in for my Quit Claim Deed should be “Consideration less than $100 – R&T 11911.” I used this when filling and now the bank is asking my why I chose this. Personally I felt like I should go with this reason because the county clerk told me to and also because we have never been married we did not qualify for Dissolution of Marriage and I didn’t want to be hit with any tax penalties for taking him off the deed. Can you tell me if this was the right reason to use? Should I have chosen another reason, if so which one?
thanks for your help, Lihla
Juliana Tu July 9, 2012 at 11:41 am	Thank you for leaving a question on our website.
I believe your choice of “consideration less than $100” is correct. There really is no other better transfer tax verbiage you can use unless you use the one – “This is a bonafide gift…” and then have the issue of gift taxes come up. Your bank is being very particular because of the loan modification. I would respond to the bank that since there was no money involved the County stated that this was the correct verbiage to use!
I hope we were able to help you and appreciate your looking on our site!
Markee Slagel June 18, 2012 at 7:30 pm	Hi, i’m going through the legal process of separation or divorce (not sure) but my attorney made some kind of deal with my spouses attorney that required me to quit claim and execute an inter-spousal transfer. I’ve been kept in the dark and just recently received a copy of the transfer which included a small-print referance stating that “the conveyance establishes the sole and separate property of a spouse, and the Grantor (me) received nothing in return, R&T 11911″. I looked it up and to my amazement discovered that my spouse is a magician – she made a house, the equity and everything in it disappear. This seems like the wrong referance to me?
Juliana Tu June 19, 2012 at 12:47 pm	Thank you for posting a question on Viva Escrow! Inc.’s website.
The Revenue and Taxation Code used by the attorney – “the conveyance establishes the sole and separate property of a spouse” – can be used for a transfer from one spouse to another, especially if the marriage is not fully dissolved. However, the second part of it – “the Grantor received nothing in return”, would apply only if you really did not get anything for it. I can’t comment on the verbiage used by the attorneys as I don’t have any background on your case. The normal Revenue and Taxation exemption verbiage used is – “The conveyance is in dissolution of marriage by one spouse to the other, R&T 11927.” However, if the marriage is not fully dissolved, maybe that’s why this verbiage was not used.
Hopefully we were able to answer your question.
Vince June 11, 2012 at 6:33 pm	I am trying to figure out which exemption I should use when I just want to add my wife to the title. I am using a quit claim deed. We just got married recently and I’m hoping to add her to the title of my house which I bought prior to our marriage. Which one of the above should be used in this case?
Juliana Tu June 12, 2012 at 8:49 am	Thank you for leaving a question on our Viva Escrow Inc. website.
To put your wife on title, please type the following on the Quitclaim deed:
“This conveyance confirms a community property interest, R&T 11911”.
lee May 19, 2012 at 1:12 pm	Am quitclaiming a mobile home to my daughter As a gift. Riveside Cty no homeowners,s exemption.
On Documentary Transfer Tas Affidavit Do I just state it is a gift And no monies received? And add R and T 11911?
On number 11 where it asks for other explanation….
Juliana Tu May 21, 2012 at 5:11 pm	Thank you for your question. The transfer of mobilehomes is not done with Deeds of any kind unless the manufactured home is permanently affixed to the land. For manufactured homes that are not set in a foundation the transfer must be made through the California Housing and Community Development Department. You will need to contact them at # (818) 717-5267.
If the mobilehome is permanently attached to the land, then you can use a quitclaim deed for the transfer and you would state that it is a gift and no monies received. You should also submit a Parent to Child Reassessment Exclusion form http://riverside.asrclkrec.com/forms/BOE58AH%20Parent%20Child%20Transfer.pdf to prevent any reassessment and increase to the property taxes.
Do call our mobile home specialist, Emilia Ochoa, for any further questions. Her direct number is #(626) 304-3599 and her email address is Emily.o@vivaescrow.com
Trackbacks	June 2011 Newsletter says:	June 10, 2011 at 12:06 am	[...] Please access our complete article, together with the Exemption recitals and list of counties, at the following area of our website: http://www.vivaescrow.com/for-your-convenience/faq/documentary-transfer-tax-exemptions [...]
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