Property Tax Benefit For Seniors

Property Tax Benefit For Seniors

Two California initiatives provide senior residents with property tax savings.  If you are over 55, find out how to transfer your property tax rate to a new home!   California has a program where senior residents can roll-over low property tax rates to a new home, a practice that saves homeowners thousands per year.  For example, my grandparents purchased their home in the 1960s for about $80,000, paying about $1,000 per year in property taxes.  After 40 years, the same home was worth about $400,000.  If my grandparents, who were by then senior citizens, wanted to sell that house and...Read more
Understanding Tax Proration

Understanding Tax Proration

Property taxes are paid current when a property is sold.  Find out how to calculate tax proration at the close of escrow.   Closing costs for the sale of real property will include property tax proration.  The purpose of a proration in a sale escrow is to fairly divide property expenses – such as taxes and homeowner’s association dues (HOAs) – between the buyer and seller to ensure each party is only paying for the days which s/he actually owns the property.   THE TAX YEAR Unlike the calendar year, the tax year begins on July 1 and ends on...Read more
What is Vesting and How Should I Take Title When Buying a Property in California?

What is Vesting and How Should I Take Title When Buying a Property in California?

Vesting for real property can have important legal and financial implications and can affect an owner’s interest, control, or transferability of the property. When a title deed is written for real property, ownership is usually described using the name of the owner(s) and a clarifying legal description.  This is known as “vesting” or “taking title”.  When preparing to purchase a property, it is important to understand the different ways of taking title and how it impacts your ownership.  The following definitions are common types of vesting and are intended as an informational overview only.  Consumers should not rely on these as...Read more