Veterans Save 1% on Real Estate Commissions with Community Partners Realty, Inc.

Are you a Veteran looking to sell your home in Orange County, CA? Community Partners Realty, Inc. is proud to offer a 1% real estate commission discount exclusively for Veterans, Military personnel, and their families. As a thank-you for your service, we are making home selling more affordable and rewarding for those who have given so much to our country.

This special Veterans benefit is available now through March 22, 2025, giving you the opportunity to maximize your home’s value while saving money on commission fees.

Why Choose Community Partners Realty, Inc.?

Community Partners Realty, Inc. is a full-service real estate brokerage dedicated to providing expert service, personalized support, and professional marketing to ensure you get the best price for your home. With a strong focus on Veterans promotions and community support, we understand the unique needs of Vets and Military families looking to sell their homes in Orange County, CA.

Maximizing Value for Our Clients

At Community Partners Realty, Inc., we take pride in securing the full or above full appraised value for our clients. Our expertise in Orange County real estate ensures that Veterans selling their homes receive top dollar through a combination of strategic pricing, professional marketing, and expert negotiation. We have a proven track record of helping homeowners get the best return on their investment, making sure your home sale is as rewarding as possible.

Who Qualifies?

This Veterans discount applies to all Veterans, Active-Duty Military, and Retired Service Members in Orange County who list and sell their homes with Community Partners Realty, Inc.

Tips for Veterans Selling Their Home in Orange County

If you are a Veteran selling your home in Orange County, follow these key tips to maximize your sale price and attract potential buyers:

• Price It Right: Research the market or consult with a Veteran-friendly real estate agent to determine the best listing price.
• Boost Curb Appeal: First impressions matter, so ensure your lawn, driveway, and entryway are well-maintained.
• Stage Your Home: Highlight your home’s best features with professional staging or simple decluttering and neutral decor.
• Make Essential Repairs: Address minor fixes like leaky faucets, chipped paint, or squeaky doors to enhance buyer appeal.
• Highlight Military-Friendly Features: If your home is near military bases like Camp Pendleton, emphasize its convenience for active-duty buyers.

Veterans Preparing Their Orange County Home for Sale

Before listing, Veterans in Orange County should take these steps to prepare their home for the market:

• Deep Clean Every Room: A spotless home shows better and helps justify a higher asking price.
• Upgrade Where Needed: Modernizing kitchens, bathrooms, or flooring can increase your home’s value.
• Get a Pre-Inspection: Identifying issues ahead of time can prevent surprises during the selling process.
• Gather Important Documents: Have your VA loan details, home warranties, and property records ready for potential buyers.

Where Can Veterans Benefit from This Offer?

If you’re a Veteran in Orange County, you can take advantage of this exclusive 1% discounted commission when selling your home in any of the following cities:

• Aliso Viejo Veterans Discount
• Anaheim Veterans Benefit
• Anaheim Hills Veterans Discount
• Brea Veterans Promotion
• Buena Park Veterans Discount
• Costa Mesa Veterans Benefit
• Coto de Caza Veterans Promotion
• Cypress Veterans Discount
• Dana Point Veterans Benefit
• Fountain Valley Veterans Discount
• Fullerton Veterans Promotion
• Irvine Veterans Benefit
• Garden Grove Veterans Discount
• Huntington Beach Veterans Promotion
• Laguna Niguel Veterans Discount
• Laguna Beach Veterans Benefit
• La Habra Veterans Promotion
• La Palma Veterans Discount
• Lake Forest Veterans Benefit
• Los Alamitos Veterans Promotion
• Mission Viejo Veterans Discount
• Orange Veterans Benefit
• Placentia Veterans Promotion
• Rancho Santa Margarita Veterans Discount
• San Clemente Veterans Benefit
• Santa Ana Veterans Promotion
• San Juan Capistrano Veterans Discount
• Stanton Veterans Benefit
• Tustin Veterans Promotion
• Villa Park Veterans Discount
• Westminster Veterans Benefit
• Yorba Linda Veterans Promotion

Partnering with Team RWB

At Community Partners Realty, Inc., we believe in supporting Veterans and Military families beyond real estate. That’s why we proudly support Team RWB, a community dedicated to enriching the lives of America’s Veterans through social and physical activities. When you work with us, you’re partnering with a team that values your service and actively gives back.

Sell Your Home & Save Today!

Don’t miss out on this limited-time Veterans discount! If you or someone you know is a Veteran in Orange County looking to sell their home, contact Community Partners Realty, Inc. today to start the process.

📞 Call Martin Bressem at 949-254-4721 to learn more and take advantage of this exclusive offer before March 22, 2025!

Selling a home in Laguna Beach is different from selling in other areas. As a coastal community with high-value properties and discerning buyers, it’s essential to prepare your home strategically to achieve the highest and best selling price while reducing market time. At Community Partners Realty, we understand the Laguna Beach real estate market inside and out. With over 35 years of experience, our broker, Martin Bressem, and our family-owned brokerage offer a full-service approach to ensure your home stands out and sells for top dollar.

Why Preparing Your Laguna Beach Home is Different

Coastal homes require extra attention when preparing for sale. The salty air, ocean views, and unique architectural styles make staging, maintenance, and marketing crucial. Unlike inland homes, Laguna Beach properties must be presented to highlight their coastal charm while addressing weather-related wear and tear. Homes that are well-prepared and strategically marketed not only sell faster but also command higher offers.

Key Steps to Preparing Your Laguna Beach Home for Sale

1. Enhance Curb Appeal

First impressions matter. When selling a home in Laguna Beach, a well-maintained exterior can make all the difference.

• Landscaping: Ensure drought-resistant plants are fresh and maintained. Add colorful flowers to create an inviting look.
• Exterior Touch-ups: Pressure wash, repaint, and check for weather-related wear, especially on coastal-facing walls.
• Front Door & Entryway: A fresh coat of paint on the front door and updated lighting can create an inviting entry.
• Garage Doors & Driveway: Power wash and repair cracks to improve overall aesthetics.
• Outdoor Living Spaces: Clean and stage patios, balconies, and decks to showcase the indoor-outdoor lifestyle Laguna Beach buyers love.

2. Decluttering: Creating a Spacious and Inviting Atmosphere

A clutter-free home allows potential buyers to envision themselves in the space.

• Minimalist Decor: Remove excess furniture and personal items to create an open, airy feel.
• Organized Storage: Clean out closets, pantries, and storage areas to make them appear more spacious.
• Depersonalization: Remove family photos and highly personalized decor so buyers can picture themselves in the home.
• Garage & Attic Cleanout: Ensure these spaces are organized and not overcrowded.

3. Home Staging: Showcasing Your Home’s Full Potential

Professional staging can help buyers visualize themselves in the space, leading to higher offers and faster sales.

• Neutral Decor: Declutter and depersonalize to make the home feel inviting to a broad range of buyers.
• Highlight Coastal Views: Arrange furniture to emphasize ocean views and natural light.
• Upgrade Furnishings: Invest in high-end touches like elegant linens, tasteful artwork, and modern accessories.
• Fresh Scents & Air Quality: Consider air purifiers and light, natural scents to create a welcoming atmosphere.
• Lighting: Maximize natural light and upgrade to modern, warm lighting fixtures for a luxurious feel.

4. Routine Maintenance & Repairs

Buyers expect a well-maintained home. Addressing minor repairs before listing can prevent last-minute deal-breakers and increase perceived value.

• Deep Cleaning: Professionally clean carpets, floors, and surfaces for a spotless presentation.
• Roof & Gutters: Inspect, clean, and repair to prevent leaks and water damage.
• Windows & Doors: Check seals, repaint frames, and replace damaged screens. Ensure windows are clean and streak-free.
• Plumbing & Electrical: Fix any leaks, running toilets, or faulty outlets. Replace burnt-out plugs, switches, or GFCIs that are not working.
• HVAC System: Service the heating and cooling system to ensure efficiency and improve air quality.
• Pest Control: Inspect for termites and other pests common in coastal areas.
• Seawall & Foundation Check: For oceanfront properties, ensure these structural elements are in top shape.
• Deck & Balcony Inspection: Check for dry rot or weather-related damage and make necessary repairs.

5. The Importance of Hiring a Seasoned Broker vs. a Real Estate Agent

Many sellers don’t realize the significant difference between working with a seasoned broker versus a real estate agent.

• Experience & Knowledge: A broker has more education and experience than an agent, leading to better negotiations and pricing strategies.
• Legal & Financial Expertise: Brokers understand complex real estate contracts and market conditions better than agents.
• Higher Level of Accountability: Brokers are licensed at a higher level and oversee agents, ensuring a superior level of service.

6. The Importance of Retaining a Laguna Beach Resident as Your Broker

When selling a luxury home in Laguna Beach, hiring a broker who lives in the community is a significant advantage.

• Local Market Knowledge: A resident broker understands Laguna Beach neighborhoods, pricing trends, and buyer expectations.
• Community Connections: Local brokers have established relationships with high-net-worth buyers, real estate professionals, and service providers.
• Immediate Availability: Living in Laguna Beach allows for quick response times for showings, inspections, and negotiations.
• Passion for the Community: Resident brokers are invested in maintaining Laguna Beach’s reputation and quality of life, ensuring they advocate for the best buyers for your home.

7. The Importance of an In-House Mortgage Brokerage

Community Partners Realty is proud to have an in-house mortgage brokerage, Treasury Funds Home Loans Inc. This provides home sellers with a significant advantage:

• Buyer Cross-Qualification: All buyers are pre-screened to ensure they are financially qualified, reducing the risk of deals falling through.
• Streamlined Escrow Process: Direct communication between the brokerage and lender ensures smoother transactions.
• Faster Closing Times: With all financing managed in-house, we eliminate unnecessary delays in loan processing.
• Accountability: Our in-house lender is directly responsible to the broker, ensuring a higher level of service and reliability.

Why Work with Community Partners Realty?

Unlike corporate real estate firms where agents come and go, Community Partners Realty is a family-owned and operated business deeply rooted in Laguna Beach. With over 35 years of experience, Martin Bressem personally ensures each client receives top-tier service. Our full-service approach includes:

• Personalized marketing strategies tailored to highlight your home’s unique features.
• High-end photography & videography that captures the essence of your home.
• Professional staging & concierge services to present your home in the best possible light.
• Expert negotiation & contract management to secure the best possible offer.
• Dedicated Support: Work directly with an experienced broker-owner rather than agents who frequently come and go.
• Local Expertise: As Laguna Beach residents, we have deep connections in the community and a firsthand understanding of what buyers are looking for.

Ready to Sell Your Laguna Beach Home?

Let Community Partners Realty guide you through the process with expertise and personalized service. Contact Martin Bressem today to get started and maximize your home’s value!

📞 Call Martin Bressem at Community Partners Realty: 949-254-4721

What the NAR Settlement Means for Buyers

Buying a home may be one of the largest financial decisions most people will make.

Here’s what the settlement means for homebuyers:

Written Agreement Requirement: Before touring a home, you will need to sign a written agreement with your agent. Review this agreement to ensure it accurately reflects the terms you’ve discussed and that you understand the services and fees involved.

Compensation Details: The buyer agreement must clearly state:

The exact amount or rate of compensation the agent will receive or how it will be determined.
Compensation must be specific (e.g., $0, a flat fee, a percentage, or an hourly rate), not vague (e.g., cannot be based on what the seller offers).

The agreement must specify that the agent cannot receive compensation exceeding the agreed-upon amount or rate from any other source.

A clear statement that broker fees and commissions are negotiable and not set by law.

Scope of Agreements: Written agreements are required for both in-person and live virtual home tours.

No agreement is needed if you are simply asking an agent questions at an open house.

Seller Compensation: Sellers may offer compensation to your agent, but this offer cannot be listed on a Multiple Listing Service (MLS).

Concessions: You can still receive concessions from the seller, such as offers to cover your closing costs.

These changes will take effect on August 17.

What the settlement doesn’t change:

Agent compensation remains negotiable. If your agent is a Realtor®, they are required to discuss compensation transparently and clearly with you. Be sure to ask questions about compensation and the services provided.

You have choices. Work with your agent to explore all your options to make the best decision for your needs. (National Association of Realtors®)

For the full, original article, please see:
Homebuyers: Here’s What the NAR Settlement Means for You

What the NAR Settlement Means for Home Sellers

As a home seller, you have many options for listing your property.

Here’s what the settlement means for home sellers:

Compensation to Buyer Brokers: You can still choose to offer compensation to buyer brokers as a way to market your home or enhance its appeal to potential buyers.

Disclosure and Approval: Your agent must clearly disclose any payment or offer of payment to another broker representing buyers, and obtain your approval in writing before any such payment is made. This disclosure must include the specific amount or rate of the payment.

Offer Changes: While you can still make a compensation offer, your agent cannot list this information on a Multiple Listing Service (MLS). However, your agent can promote your listing through other channels like social media, flyers, and websites.

Buyer Concessions: You can still offer concessions to buyers, such as covering closing costs, and include these offers on an MLS.

These changes will take effect on August 17.

What the settlement doesn’t change:

Negotiable Compensation: Agent compensation remains fully negotiable. If your agent is a Realto®, they must adhere to the Realtor® Code of Ethics and have clear, transparent discussions with you about compensation. Be sure to ask about compensation and discuss what you would like to offer to buyers.

Your Choices: You have a range of options when selling your home. Work with your agent to explore these options and make the best decisions for your needs. (National Association of Realtors®)

For the full, original article please see:
Home Sellers: Here’s What the NAR Settlement Means for You

If you are contimplating whether or not you need renter’s insurance, here are a few things renter’s insurance may cover, depending on the coverage you purchase:

Protection of Personal Belongings

Renter’s insurance covers personal property against risks like theft, fire, vandalism, and specific natural disasters. Imagine a fire damages your apartment: without insurance, you would bear the full cost of replacing your furniture, electronics, clothing, and other items. With renter’s insurance, the policy helps cover these expenses, ensuring you can quickly recover and replace your belongings without significant financial strain.

Liability Coverage

Liability coverage protects you if someone is injured in your rental unit. For example, if a friend trips over your rug and breaks their arm, they could sue you for medical expenses. Renter’s insurance can cover these costs, including legal fees, settlements, or court judgments. This protection is crucial, as medical bills and legal fees can quickly add up, leading to substantial financial hardship if you are found liable.

Additional Living Expenses (ALE)

If your rental becomes uninhabitable due to a covered event (like a fire or severe storm), ALE coverage can help pay for temporary living arrangements. This includes hotel stays, restaurant meals, and other necessary expenses while your home is being repaired. Without this coverage, you might have to bear the high costs of finding alternative housing on your own, which can be a significant financial burden during an already stressful time.

Affordable Peace of Mind

Renter’s insurance is typically inexpensive, often costing less than $20 per month. This small investment provides significant peace of mind, knowing that you are financially protected against various risks. The cost of premiums is minor compared to the potential expenses of replacing personal items, covering liability claims, or paying for temporary housing.

Requirement by Landlords

Many landlords require tenants to have renter’s insurance as a lease condition. This requirement helps protect the landlord by reducing their liability in case of tenant-caused damages. It also ensures that tenants have coverage for their belongings and potential liabilities. Being prepared to show proof of insurance can make the leasing process smoother and demonstrate your responsibility as a tenant.

Protection Against Lawsuits

If you accidentally cause damage to the rental property or neighboring units, renter’s insurance can help cover repair costs and legal fees. For example, if you inadvertently start a fire that spreads to other units, you could be held liable for the damages. Renter’s insurance can cover these costs, protecting you from significant financial and legal repercussions.

Covers Losses Not Included by Landlord’s Insurance

Landlord’s insurance typically only covers the building structure and common areas, not the tenant’s personal property or liability. Renter’s insurance fills this gap, providing coverage for your belongings and personal liability. This means you won’t have to rely on the landlord’s policy, which doesn’t cover your personal losses or liabilities, ensuring comprehensive protection.

Worldwide Coverage

Many renter’s insurance policies offer coverage for personal belongings even when they’re not inside the rental unit. For instance, if your laptop is stolen while you’re traveling, or your bike is stolen from outside your workplace, your policy can help cover the loss. This feature provides an added layer of security and convenience, ensuring your belongings are protected no matter where you are.

Summary

Renter’s insurance can be a cost-effective way to protect yourself and your belongings. It offers a wide range of benefits, including coverage for personal property, liability, additional living expenses, and worldwide protection. With its affordability and comprehensive coverage, renter’s insurance is an essential consideration for anyone renting a home or apartment, providing peace of mind and financial security against unforeseen events.

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Housing Inventory May be Growing

December marked a turning point in the real estate landscape, as unsold inventory saw its first growth in months. This is according to Realtor.com’s Monthly Housing Trends Report, as reported in the December 9th, 2024 issue of ScotsmanGuide.com. The report highlights a 3.6% year-over-year increase in the total number of unsold homes, encompassing those under contract. This positive shift is attributed to the rising trend of newly listed homes, with a notable 9.1% annual increase, alongside a 4.9% boost in active listings compared to December 2022.

While winter typically witnesses reduced activity from home sellers, the data suggests a potential recovery in winter real estate dynamics. Despite remaining 34.3% below pre-pandemic levels, active inventory is showing signs of improvement. The month-over-month decline in inventory from November to December, historically ranging from 6.8% to 13.2%, only saw a 5.5% dip last year over the same period.

Among the country’s 50 largest metros, December witnessed annual inventory growth in 25, with notable spikes in the South. Thirty-four metro areas experienced an increase in new listings compared to December 2022.

However, despite the promising uptick in December inventory levels, the report emphasizes that the current elevated interest rate environment poses a significant obstacle to a substantial supply rebound. Danielle Hale, Chief Economist at Realtor.com, underscores the importance of considering the prevailing interest rate landscape. While there is optimism regarding inventory levels moving in a positive direction, Hale notes that the number of homes on the market remains low relative to pre-pandemic levels. Some sellers are motivated, but others may hold out for lower rates before making significant real estate decisions.

Full Article Here

Whether you’re in the market to purchase or sell, Community Partners Realty, Inc. is here for you! Feel free to reach out to us, and let’s have a conversation about your real estate needs.

Propositions 60 and 90 Transfer of Base Year Value for Persons Age 55 and Over

Resources

Forms

Effective April 1, 2021, Proposition 19 provisions potentially affect the former base year value transfers for persons age 55 and over that were added by Propositions 60 (1986) and 90 (1988). Please visit the Proposition 19 webpage for more information on the operative base year value transfers for persons age 55 and over.

Propositions 60/90 amended section 2 of Article XIIIA of the California Constitution to allow a person who is over age 55 to sell his or her principal place of residence and transfer its base year value to a replacement dwelling of equal or lesser value that is purchased or newly constructed within two years of the sale. These propositions are implemented by Revenue and Taxation Code section 69.5.

Proposition 60 allows for the transfers of a base year value within the same county (intracounty). Proposition 90 allows for the transfers of a base year value from one county to another county in California (intercounty) if the county has authorized such a transfer by an ordinance.

As of November 7, 2018, the following ten counties in California have an ordinance enabling the intercounty base year value transfer:

Alameda	Los Angeles	Orange
Riverside	San Bernardino	San Diego
San Mateo	Santa Clara	Tuolumne
Ventura

Eligibility Requirements for Propositions 60/90:

Claimant
You, or a spouse residing with you, must at least 55 years of age when the original property is sold.
This is a one-time only benefit. Once you have filed for and received this tax relief, neither you nor your spouse who resides with you, can ever file again, even upon your spouse’s death or if the two of you divorce. However, if you become disabled after receiving this tax relief, you may transfer the base year value of your personal residence a second time due to the disability, which involves a different claim form (see Proposition 110).

Original Property
Your original property must eligible for the Homeowners’ Exemption or Disabled Veterans’ Exemption either at the time it was sold or within two years of the purchase or construction of the replacement property.
The original property must be subject to reappraisal at its current fair market value at the time of sale.

Replacement Property
The replacement property must be your principal residence and must be eligible for the Homeowners’ Exemption or Disabled Veterans’ Exemption
The replacement property must be of “equal or lesser value” than the original property.
In general, equal or lesser value means:

100% or less of the market value of the original property if a replacement property were purchased or newly constructed before the sale of the original property, or
105% or less of the market value of the original property if a replacement property were purchased or newly constructed within the first year after the sale of the original property, or
110% or less of the market value of the original property if a replacement property were purchased or newly constructed within the second year after the sale of the original property.
Note: When making the “equal or lesser value” test, it is important to understand that the market value of a property is not necessarily the same as the sale or purchase price.

The replacement property must be purchased or built within two years (before or after) of the sale of the original property

File a Claim
To receive retroactive relief from the date of transfer, you must file your claim within three years of:

The purchase date of the replacement property; or
The new construction completion date of the replacement property.
If a claim is filed after the three-year period, relief will be granted beginning with the calendar year in which the claim was filed.

Who is considered a claimant for Propositions 60/90?

Question: I am over 55, but my wife is not yet 55. Is she considered a claimant for benefits of Proposition 60? What about other co-owners?
Answer: A claimant is any person claiming Proposition 60/90 property tax relief. A claimant must be an owner or co-owner of the original property as a joint tenant, a tenant in common, or a community property owner. A spouse of the claimant is also considered a claimant if the spouse is a record owner of the replacement dwelling (and thus must provide his/her social security number on the claim).

An owner of record of the replacement property who is not the claimant’s spouse is not considered a claimant, and a claim filed for the property will not constitute use of the one-time-only exclusion by the co-owner even though that person may benefit from the property tax relief.

Question: My Registered Domestic Partner and I sold a home and purchased a replacement property in 2008. My Partner transferred the base year value under Proposition 60. Since we are registered domestic partners, was I also considered a claimant? If not, will this affect my ability to use the exclusion later?

Answer: As a registered domestic partner, you were not considered a claimant. The fact that your partner used the exclusion will not affect your ability to transfer the base year value later. Proposition 60 provides that “any person over the age of 55 years” includes a married couple one member of which is over the age of 55 years. Since a registered domestic partnership is not a married couple, the registered domestic partner of a claimant is not a spouse and is not considered to have used his/her one-time-only exclusion under section 69.5.

Question: My home is held in a trust in which I am the sole present beneficiary. Can I qualify for Proposition 60 benefits if I sell my home and buy a replacement home that will also be held in trust? In other words, am I a qualified claimant if the transactions are made by me as trustee of the trust?

Answer: You qualify for the benefits if you are the present beneficial owner of the trust, not simply the trustee of the trust. For property tax purposes, the property owner is the person who has the present beneficial interest of a trust. The trustee holds legal title to the trust property but may not necessarily be the present beneficial owner.

Is my transfer eligible for Propositions 60/90?

Question: Would I still qualify for Proposition 60 benefits if I was a few months shy of 55 when my property sold, but over 55 when I purchased my replacement property?

Answer: No, you must be at least 55 when your original property sells. While you may be 54 when you purchase your replacement property, you must be at least 55 when you sell your original property.

Question: Will the transfer of an original property or acquisition by gift or devise qualify under Propositions 60/90?

Answer: A property that is given away or acquired by gift or devise will not qualify because nothing of value was exchanged. Propositions 60/90 require a “sale” of the original property and a “purchase” of a replacement dwelling. Sale and purchase are statutorily defined as a change in ownership for consideration. This is a two-part test:

The property must be subject to change in ownership; and
Something of value must be exchanged for the property.

Question: My spouse and I are divorcing. If we sell our original property, can each of us qualify for the base year value transfer if we both buy separate replacement dwellings?

Answer: No. Only one of you can receive the benefit. Assuming you both qualify, you must decide between yourselves who will get the benefit. Only in the case of a multiple unit original property where several co-owners qualify for separate exemptions may portions of the factored base year value of that property be transferred to several replacement dwellings.

Question: A few years ago I inherited a residence from my mother. I filed for and received the parent-child exclusion. In a couple years after I turn age 55, can I sell this property and transfer my mother’s base year value to another property that I purchase?

Answer: Yes, as long as you have moved into the inherited residence and live in it as your primary place of residence. If you are over age 55, you may sell your primary residence, buy another residence, and transfer the base year value as long as all the other requirements (timing, value, residency, timely filed claim) are met. It does not matter how you acquired your original property.

Question: Do I need to be receiving the homeowners’ exemption on my original property when it is sold?

Answer: No. The original property must be eligible for the homeowners’ exemption because you own it and because it was your principal place of residence, either:
At the time of its sale; or
Within two years of the purchase or new construction of the replacement dwelling. If you did not have the homeowners’ exemption on your property, you may need to provide documents to the assessor that prove it was your principal place of residence. Proof of residency may include voter or vehicle registration, bank accounts, or income tax records.

Question: I purchased three units in a six-unit building and I intend to use all three as my principal place of residence. Can I transfer the base year value to all three units?

Answer: Only one unit is eligible for the base value transfer value. Here, the transfer would be granted only if physical construction is undertaken to convert multiple units into a single merged unit. This new construction must be completed within two years of the sale of the original property.

Question: If I make an improvement to my replacement home after I transferred the base year value to it, can I get additional tax relief for the new construction?

Answer: Yes, provided (1) the construction is completed within two years of the sale and (2) the full cash value of your new construction plus the market value of your replacement home when purchased does not exceed the market value of the original property as determined for the original claim. You must notify the assessor in writing within 6 months after completion of the new construction.

Question: I sold my original property last year and purchased a replacement property (Property 2). I am not sure I like where my replacement property is located. If I purchase another property (Property 3), can I transfer my base year value to Property 3 if it meets the timing and value requirements?

Answer: There is nothing in section 69.5 that requires the first home you purchase be your replacement dwelling. Thus, you can own and occupy an interim residence. As long as you do not file a claim to transfer the base year value to this interim residence, this purchase will not factor into your eligibility to ultimately transfer your base year value. In the situation you presented, your purchase of Property 2 will not have any effect on the Proposition 60 eligibility of Property 3 as long as you do not file a Proposition 60 claim for Property 2.

Question: I plan to relocate from Los Angeles County to San Francisco County. Do both counties have to have ordinances that accept intercounty transfers?

Answer: No, only the county in which your replacement property is located must have an ordinance that accepts intercounty transfers. It does not matter what county in California your original property is located in.

Effective Dates/Eligible Time Periods

Question: If a replacement home is newly constructed, what is the date of completion?

Answer: The date of completion of a newly constructed replacement home shall be the date that the property has been inspected and approved for occupancy by the local building department, or, if there is no such inspection and approval procedure, the date when the prime contractor has fulfilled all of the contractual obligations. If inspection and approval procedures are non-existent and there is no prime contractor, the date of completion is when outward appearances clearly indicate it is immediately usable for the purpose intended.

The construction on replacement property must be completed within two years of the sale of the original property to qualify for Proposition 60/90 tax relief. The replacement lot may be purchased any time, but completion of the construction on the lot must occur within two years of the sale of the original property. In addition, the market value of the lot and new constructed home on date of completion of construction must meet the equal or lesser value test.

Question: Is there any extension of the two-year period after I sell my home if construction on my new home is delayed due to unforeseen circumstances beyond my control?

Answer: Regardless of the reason, if the new construction is not completed within two years, the property will not qualify for property tax relief. There is no provision for any exception due to hardship or other factors which may have prevented compliance with the two-year time period from the date of sale of the original property.

Question: I purchased a replacement dwelling in March 2015. My original property later sold in November 2016 and I filed a claim to transfer the base year value. Is the date of transfer the date I purchased the replacement dwelling?

Answer: Assuming you meet all the qualifications for a Proposition 60/90 base year value transfer, the base year value is transferred as of the latest qualifying date:

The date the original property sold; or
The date the replacement property is purchased; or
The date the new construction of the replacement property is completed.
In your case, the base year value would be transferred as of November 2016 because that is the latest qualifying date. You are responsible for the increased taxes from the time the replacement property was purchased until the original property was sold.

Question: Can I still be granted the exclusion if I file after the three-year filing period?

Answer: Yes, as of January 1, 2007, a claim that is filed after the three-year filing period may receive the benefits commencing with the lien date of the assessment year in which the claim is filed. Retroactive benefits from the date of transfer will not be granted. The full cash value of the replacement property in that assessment year shall be the base year value from the year in which the property was transferred, factored to the assessment year in which the claim is filed. The factored base year value of any new construction which occurred between the date of sale and the date the prospective relief is being applied should also be added.

Equal or Lesser Value Comparison

Question: When making the “equal or lesser value” comparison, is a simple comparison of the sales price of the original property and the purchase price of the replacement dwelling all that is needed?

Answer: No, the full cash value of the original property as of the date of its sale must be compared with the full cash value of the replacement property as of its date of purchase or completion of new construction. However, property tax laws presume that the purchase price paid in a transaction is the full cash value unless evidence shows that the real property would not have transferred for that price in an open market transaction.

Question: If the full cash value of the replacement dwelling does not satisfy the “equal or lesser value” test, can a claimant receive partial benefit?

Answer: No. Unless the entire replacement dwelling satisfies the “equal or lesser value” test, no benefit is available. It is “all or nothing.” Partial benefits are not granted.

Question: I want to sell my principal residence valued at $180,000 and purchase a one-third interest in a property valued at $360,000. Since my interest in the new property is only valued at $120,000, which is less than my sale price, can the base year value of my original property be transferred?

Answer: No, comparison of values must be between the total properties involved and not just a fractional interest. Only if the property that is being purchased has a market value of $180,000 (or less), will the property qualify for the base year value transfer.

Question: The assessor’s office denied my base year value transfer claim because they indicated that my replacement property has a higher value than my original property. Can I appeal?

Answer: Yes. If you do not agree with the full cash value that was placed on the original property and your claim was denied because the replacement property did not meet the value comparison test, the appeals board would have to determine the full cash value of the original property for purposes of qualification. An appeals board has the jurisdiction to hear such an appeal if:

The original property is located in the same county as the replacement dwelling; and
The new base year value of the original property can still be challenged pursuant to section 80 of the Revenue and Taxation Code.
Appeals can be filed with the county assessment appeals board either within 60 days of the date of mailing of the assessment notice (section 1605) or during the regular equalization period (section 1603). Additionally, a base year value may be appealed during the regular equalization period for the year in which it is place on the assessment roll or in any of the three succeeding years.

Miscellaneous Answers

Question: After receiving the notice that my application has been approved for a base year value transfer, will I receive a refund of the taxes I already paid?

Answer: Yes, any overpayments you made will be refunded for the period following the effective date of the base year value transfer (i.e., the latest qualifying transaction date).

Question: I have a client who transferred his base year value from one home to another. He doesn’t like his new home because the traffic is noisy, but he can’t afford the increased taxes if he has to move again. Is there a way he can rescind his Proposition 60/90 base year value transfer claim?

Answer: If your client transferred his base year value recently, he may be eligible for a rescission. Section 69.5 provides two circumstances under which a Proposition 60/90 claim may be rescinded:

If he has not yet received relief in the form of a refund check or payment of taxes of a reduced tax bill, then he may file a notice of rescission with the county assessor; or
If he vacates the property within 90 days of filing the claim to transfer the base year value, he has six years to file a notice of rescission with the assessor.