I have a townhouse in California valued at 500,000.
I currently owe 200,000.
I am 85 years old and would like to refinance.
My daughter will need to cosign for my refinance due to my fixed income.
My current assessed value is 333,000.
Will my property tax increase?
or is there a way to avoid the increased property tax assessment?
Will your daughter need to be on title as co-owner in order for you to refinance the loan?
If not, there would be no effect on the property taxes because there is no change in ownership.
If yes, then a deed reflecting the change in ownership will need to be recorded. California state law requires new homeowners and anyone else named as holding an interest in real property to file a PRELIMINARY CHANGE OF OWNERSHIP REPORT (PCOR) with the County Recorder's Office at the time of recording any deed. Typically, it is filled out in escrow and accompanies the deed when recorded. Information which the new owner furnishes on this form will assist the Assessor to determine whether or not there is a reappraisable change in ownership; and if so, the fair market value of the property.
As stated on the PCOR form, you may qualify for a property tax reassessment exclusion, which may allow you to maintain your previous tax base.
The information presented here is general in nature and is not intended, nor should be construed, as legal advice. This posting does not create any attorney-client relationship with the author (who is only admitted to practice law in the State of California). For specific advice about your particular situation, consult your own attorney.
Unless there is a change in ownership you should not expect a revaluation for property tax purposes. Refinancing is not a change in ownership.
The above is general legal and business analysis. It is not "legal advise" but analysis, and different lawyers may analyse this matter differently, especially if there are additional facts not reflected in the question. I am not your attorney until retained by a written retainer agreement signed by both of us. I am only licensed in California. See also avvo.com terms and conditions item 9, incorporated as if it was reprinted here.
Couple of possibilities. She can sign as contingent co signer or equal co signer.
Now might be a good time to examine things and make sure that you will have avoided probate.
Curt Harrington Patent & Tax Law Attorney Certified Tax Specialist by the California Board of Legal Specialization PATENTAX.COM This communication is general information and not legal advice, and does not create an attorney-client relationship. This communication should not be relied upon as any type of legal advice. Please note that no attorney-client relationship exists between the sender and the recipient of this message in the absence of either (1) a signed fee contract and (2) remission of an agreed-upon retainer. Absent such an agreement and retainer, I am not engaged by you as an attorney, nor is any other member of my law firm.
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