My commitment to my clients is to educate and create awareness of current and upcoming propositions, conditions, new laws and other factors that could impact the value or appeal of your property. On that note, I want to share with you a new upcoming disclosure on Home Hardening and Proposition 19. If you have questions about these important topics I can always be reached at Sharon.Kramlich@compass.com
Home Hardening Disclosure
As of Jan 1st, the new home hardening disclosure is included in the sellers disclosure statement (see excerpt below) for all homes located in high or very high fire hazard zones and built before Jan 1st 2010 (prior to the Wildfire Urban Interface building codes).
As of June 1st there will be an additional disclosure further explaining the requirements related to any local and state laws. At the current time, some towns in Marin require fire inspections at the point of sale (such as Larkspur), yet other towns do not. All towns will require fire inspections eventually, as local funding allows.
On or after July 1, 2025, a seller shall disclose low-cost retrofits, from a list of such, that have been completed during the time that the seller has owned the property.
Retrofit and Defensible Space List
You can review more information on this website
Proposition 19 amends the California Constitution by adding sections that provide further expansion and qualifications regarding limitations on property tax increases for persons over 55, the severely disabled, victims of wildfires or other natural disasters (collectively referred to as “eligible homeowners”) and transfers of certain inherited properties.
Effective April 1, 2021, location restrictions will be removed allowing eligible homeowners to:
Move Anywhere in the State. The taxable value of a primary residence may be transferred to a replacement primary residence anywhere within the state, as long as it is within two years of the sale of the original primary residence.
Purchase a More Expensive Home. A home of greater market value may be purchased without incurring a substantial increase in taxable value. The property tax bill would still go up but not by as much as it would for other homebuyers.
Increase the Use of the Transfer. Homeowners who are over 55 or severely disabled could transfer the property’s taxable value up to three times in their lifetime.
Effective February 16, 2021, the following qualifications will apply to inherited properties:
Continued Use as Primary Residence or Family Farm. The reassessment exemption on inherited properties would apply only if the property is used by the child (or grandchild under certain circumstances) as their primary residence, or if the property is a family farm. Properties used for other purposes would not qualify for the exemption.
Increase for High Value Inherited Homes and Farms. If the current market value of an inherited property exceeds the parent’s taxable value by more than $1 million, then the child’s taxable value shall be assessed as the current market value less $1 million*.
*The State Board of Equalization shall adjust the $1 million amount for inflation beginning on February 16, 2023 and every two years thereafter.
I hope that you find this information useful.
Please do not hesitate to contact me
with any questions.
All my very best,