California Preliminary Change of Ownership Report Instructions

Music] This is Gian ducek Montoya with albertson and Davidson we are going to be going through a form called the preliminary change of ownership report today the reason that you would fill out this form is for two reasons the first reason would be is that the County Recorder will not let you file your deed without it and the second reason is to save you a bunch of money on taxes the purpose of this form is to notify the county assessor that there has been a change in ownership of our real property it's also to notify the county assessor that you may qualify for tax exclusion so we'll start at the beginning up in the left hand corner you would type in your name if you're the one that's going to be receiving this property and this is your information so we have decided to name the beneficiary in this instance Jane Smith we typed in her address then to the right which are going to be doing is you're going to be typing the property's APN number that is located on the deed so take a look at your deed and type the APN or the Assessors parcel number exactly as you see it next for our purposes generally in our field we deal with beneficiaries receiving real property through either a will or a trust or even an estate will say that John Smith is the trustee of that trust the reason we're not putting her parents name in here is because they are now deceased and the one who holds title to this property at this time is the trustee John Smith so this is his name under that the buyers daytime telephone number even that this isn't a purchase this phone number would be your phone number if you're going to be the recipient of this property below that again under buyers email address that will be your address if you are the one receiving this property on the left hand side you're going to want to put the street address or physical physical location of the real property that's being transferred so in this case we have typed an address in then you're going to want to go through each of these boxes below and make sure that it's properly filled out based on your information for our purposes generally the answer to these two boxes are no if you're if the top box is yes if you're intending this to be your principal residence you'd put yes and then you would go ahead and fill in the dates that you intend to occupy the property below that is the where you want the property tax information mailed again if you're receiving this property you would want to put your information in here so again the beneficiary's name the beneficiary's address below that actually filled it out a little bit wrong I'm going to go ahead and move these items City over here okay now we get to the property transfer information you're going to want to go through this information carefully and check all that apply if if any of these boxes apply to you you check yes if they do not apply you must check no and we'll just go through a couple of the ones that we generally use for our purposes so if you take a look at box a this transfer is solely between spouses so if if you're married you can transfer property between each other without triggering a property tax increase for our purposes we're going to say no B this transfer is solely between domestic partners currently registered with the California Secretary of State again for our purposes today that'll be known C this transfer is a transfer between parents and children or from grandparents to grandchildren because we our hypothetical is that our beneficiary is the beneficiary of her parents estate will say this property was her parents primary residence and this property is being transferred out of the trust to her we're going to go ahead and say yes on this one and then we're going to check this box between parents and children so that would be that would qualify possibly for an exclusion from reassessment and prevent our beneficiary from incurring additional taxes but warning this section would require that that you fill out an additional form on top of just checking these boxes and we'll be going through that form in a different video then we'll move down to section D this transfers the result of a co-tenants death we're going to go ahead and say no under E this transaction is to replace the principal residence owned by a person 55 years of age or older within the same county for our purposes today this will also be no and then we'll go ahead and skip a couple of these you can go through these on your own time for our purposes we just generally don't use those boxes very often again we would have to go ahead and check no on these boxes section K we do use this section a lot this is a transfer of property number one to R from a revocable trust that may be revoked by the transfer or and is for the benefit of and then there's a couple of selections the transfer or or the transfer or spouse or registered domestic partner though we do use these sections a lot for today's purposes the answer to this is no because our client would be a beneficiary of her parents trust and then the second subsection under K is to are from an irrevocable trust for the benefit of the creator' grantor trusts or grantor trust our spouse or the grantor Trust is registered domestic partner so again if you're transferring to are from either a revocable trust or an irrevocable trust if you are able to check one of these boxes you may be eligible for a reassessment exclusion and save some money on some taxes we'll take a look at M this is a transfer between parties in which a proportional interest of the transfer Wars or an transferees and each and every parcel of being transferred remain exactly the same after the transfer again for our purposes this is no today however this would be for example if your your transferring the property and proportional ownership in to an LLC say you and another individual each only 50 percent of the property and your transferring that same ownership into an LLC again each of the individuals owning 50 percent of the LLC you might be able to turn check that box well go ahead and go down to the second page for the most part we don't use the second page if we do use any section at all it would be part 2 again for our purposes it's not a purchase so that's why these other boxes below are not checked however we can go through section 2 the date of the transfer if other than the recording date on that section a you would fill in the date of death if you're receiving it through either a trust or probate we'll just say we'll use that as the date of death for today's purposes under Section B type of transfer you would just notify the Assessor in this the type of transfer that's taking place again under Section B we would check inheritance and then the date of death would be here and under C you would have to specify if only a partial interest in the property was transferred for our purposes we would check no because our beneficiary would be receiving the same or the entire property then Jane would have to sign this form she would put the date her telephone number and that is it that is the end of our form. [Music] [Applause] [Music]