Hello from Darcey and Lisa!
With Memorial Day Weekend behind us we are kicking off the start of summer. BBQs, Corn on the Cob, Pool Parties, Beach Day and more. This summer is looking great and it’s the perfect time to reconnect with those you miss and haven’t seen in a while.
The Real Estate market is still active. Interest rates have increased but remain low benefiting buyers. But the inventory vs demand is still leaning towards a sellers market. Open houses are back so we are one step closer to our “normal”.
To check out our full newsletter and market update CLICK HERE.
~ Darcey & Lisa
CLICK HERE to let us know what you would like to see in our newsletters.
Arena Construction, Inc.
Agent: Joe Arena
Arena Construction, Inc was established in 1988, by Joseph Arena. Joseph Arena has built a solid reputation as a General Contractor who is committed to excellence and customer satisfaction. This reputation is based on a history of integrity, cost effective performance, technical skill, and quality construction.
Campisi Construction, in business since 1991, is a highly professional and fully licensed, bonded and insured general contracting company that specializes in new, custom homebuilding and upscale residential remodeling.
Spruce & Pine
Agent: Lance Brown & Diane Stember Richards
What happens when a yacht builder and an advertising art director get together?
YOU GET A YACHT DIRECTOR (JUST KIDDING.)
You get a yacht builder with meticulous attention to detail and craftsmanship. And an art director with an eye for color, texture and overall “user experience”. Both Lance and Diane spent years dreaming up boats, houses and ad campaigns before coming together to work as a team. They bring decades of experience, both within the industry and outside of it. They both have a deep love for vintage details, which you’ll see throughout their houses as well as in the styling and staging.
- San Jose, CA 95125
Agent: Daniel Zachary
As an Edward Jones financial advisor, I believe it’s important to invest my time to understand what you’re working toward before you invest your money. It’s also important to understand the level of risk you’re comfortable accepting when investing so we can balance it with the steps necessary to reach your long-term goals. Whether you’re planning for retirement, saving for college for children or grandchildren, or just trying to protect the financial future of the ones you care for the most, we can work together to develop specific strategies to help you achieve your goals. We can also monitor your progress to help make sure you stay on track or determine if any adjustments need to be made. Throughout it all, we’re dedicated to providing you top-notch client service.
Agent: Tony Aranda
CLICK HERE for Website
Languages Spoken: English and Spanish
- (510) 760-6986
- San Jose, CA 95126
Blu Skye Media
Agent: Matthew Anello
Bay’s Best Moving Company
Agent: Hayden K. S. Wolf
Service: Moving Company
Premium Moving Team
- (408) 888-0221
- [email protected]
Benny Car Detail
- (408) 637-3686
- San Jose, CA
Marion Campisi, Wardrobe Stylist
When a woman feels good about the way she looks, she feels more confident. With a little guidance, I believe that this is something anyone can achieve. For me, this means dressing in a way that reflects my true self and allows me to express myself through my clothing.
- (408) 832-3983
It’s easy & FREE to get rid of your junk
San José residents can schedule free appointments to have large items (such as mattresses, sofas, refrigerators, tires, and more) picked up by their recycling collection company. Call your recycling company to schedule your pickup. Use the Residential Services Lookup to find your recycling collection company. CLICK HERE for a list of accepted items.
- San Jose, CA
What is the difference between Proposition 60 and Proposition 90?
Proposition 60 allows transfers of base year values within the same county (intra-county). Proposition 90 allows transfers from one county to another county in California (inter-county) and it is the discretion of each county to authorize such transfers.
What are the counties that have enacted ordinances to accept inter-county transfers?
As of June 5, 2015, the following eleven counties in California have an ordinance enabling the inter-county base year value transfer: ALAMEDA, EL DORADO, LOS ANGELES, ORANGE, RIVERSIDE, SAN BERNARDINO, SAN DIEGO, SAN MATEO, SANTA CLARA, TUOLUMNE, and VENTURA. Please note that El Dorado County’s ordinance is scheduled to sunset on October 1, 2021, unless the El Dorado County Board of Supervisors takes further action.
What are the eligibility requirements for Propositions 60/90?
- You, or a spouse residing with you, must have been at least 55 years of age when the original property was sold.
- 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 “current market value” than the original property. The “equal or lesser” test is applied to the entire replacement property, even if the owner of the original property purchases only a partial interest in the replacement property. Owners of two qualifying original properties may not combine the values of those properties in order to qualify for a Proposition 60 base-year value transfer to a replacement property of greater value than the more valuable of the two original properties.
- The replacement property must be purchased or built within two years (before or after) of the sale of the original property.
- To receive retroactive relief from the date of transfer, you must file your claim within three years following the purchase date or new construction completion date of the replacement property.
- Your original property must have been eligible for the homeowners’ 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, unless the buyer(s) of your original property also qualify the property as a replacement property for a base year value transfer due to disaster relief or a base year value transfer for a severely and permanently disabled person. Therefore, most transfers between parents and children will not qualify.
This is a one-time only benefit. Once you have filed 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. The only exception is that if you become disabled after receiving this tax relief for age, you may transfer the base year value a second time because of the disability, which involves a different claim form.
How many times can one receive the benefit of Propositions 60/90?
As a senior citizen, one may transfer his or her base year value only once, with the one exception that if a person first received relief for age and subsequently became severely and permanently disabled after the date of the original claim and had to move because of the disability (Proposition 110), then the base year value may be transferred a second time. The base year value transfer, however, is not available in the reverse situation; if one receives the benefit due to disability, then they cannot subsequently claim the relief for age.
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?
A claimant is any person claiming Proposition 60/90/110 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.
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?
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.
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?
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.
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?
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 of it.
What does “equal or lesser value” of a replacement property mean?
The market value of the replacement property as of the date of purchase must be equal or less than the market value of the original property on the date of sale. The meaning of “equal or lesser value” depends on when you purchase the replacement 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.
In determining whether the “equal or lesser value” test is met, it is important to understand that the market value of a property is not necessarily the same as the sale or purchase price. The assessor will determine the market value of each property. If the market value of your replacement dwelling exceeds the “equal or lesser value” test, no relief is available.
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?
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.
If the full cash value of the replacement dwelling does not satisfy the “equal or lesser value” test, can a claimant receive partial benefit?
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.
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?
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.
I plan to relocate from Los Angeles County to San Francisco County, but San Francisco County says they don’t allow base year value transfers from another county. I thought there was a law that allows that.
The law that allows for transfers of base year value between counties merely authorizes each county board of supervisors to adopt an ordinance accepting transfers from other counties. It is the discretion of each county to allow such inter-county transfers. The county in which your replacement property is located must have an ordinance that accepts inter-county transfers. It does not matter what county in California your original property is located in.
Will the transfer of an original property or acquisition by gift or devise qualify under section 69.5?
A property that is given away or acquired by gift or devise will not qualify because nothing of value was exchanged. Section 69.5 requires 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.
I co-own and live in a house shared with another co-owner. Can we sell this original property and each still qualify for the claim if we both buy separate replacement dwellings?
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.
If an original property has a separate living unit on the property (i.e. in the back or over a detached garage), what portion or value of the original property will qualify to determine qualification of the replacement property?
If the original property has a separate living unit that is used as a rental, its full cash value would be allocated between the main residence and the rental unit and only the value of the unit the claimant occupies would be compared to the value of the replacement dwelling. The factored base year value being transferred would be adjusted for both the separate unit and that portion of land used to support the second unit. A unit would be considered separate from the main residence if it has its own kitchen, bathroom facilities, and entrance and is used for purposes incompatible with the homeowners’ exemption.
The market value of the separate living unit (land and improvements) would be deducted from the market value of the total property. Only the amount of the indexed base year value allocated to the original residence would be transferred.
If, however, the separate living unit is used solely as a guest house, it may be considered part of the principal residence and the full cash value of the entire property may be transferred to the replacement property, even if the new property does not have such a separate living unit.
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?
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.
Do I need to be receiving the homeowners’ exemption on my original property when it is sold?
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 (1) at the time of its sale or (2) 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.
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?
The transfer would be granted only if physical construction is undertaken to convert multiple units into a single merged unit. The construction must be completed within two years of the sale of the original property. In addition to a traditional single family residence, the original or replacement property may be a single unit in a cooperative housing corporation, a community apartment project, a condominium project, or a planned unit development.
I purchased a replacement home for $200,000 last year but did not sell my original home at that time. The market has slowed down since then and now I am only getting offers for $185,000 although I expected it to sell it for more than what I paid for my replacement property. What can I do to qualify for the base year value transfer now?
Since the property you purchased for $200,000 did not meet the requirements of section 69.5, you did not use the one-time-only benefit and you are paying taxes on the market value of the $200,000 home. You may purchase another qualifying replacement property, but it must be within two years of the sale of your original home to benefit from the lower base year value.
If a replacement home is newly constructed, what is the date of completion?
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, 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 60/90/110 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.
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?
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 exceptions 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.
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?
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.
I purchased a lot six years ago with the expectation of building my retirement home. I plan to start construction next year. If construction is completed within two years of the sale of my original home, will the new home qualify for the base year value transfer?
Yes. The date of your lot purchase has no bearing on the qualifying time period for base year value transfers. Section 69.5, subdivision (h)(1) provides that a base year value shall be transferred as of the latest qualifying date:
- the date the original property sold;
- the date the replacement property is purchased;
- the date the new construction of the replacement property is completed.
Thus, if your new home is completed within two years of the sale of your original home the time period requirement will be satisfied.
The full cash value of the lot and improvements as of the date of completion of new construction must be equal to or less than the full cash value of the original property as of the date of sale.
I purchased and moved into another residence in March 2003 and completed an addition on it in September 2003. I rented my original property and then sold it in July 2005. Can the base year value be transferred to the replacement property?
No. Over two years have elapsed since the time you purchased your replacement property and when you sold your original property. The completion of the addition was within two years but it is not a qualifying date for the tax relief.
If I purchased a lot five years ago and completed building my own home this year, how is the new construction valued? For base year value transfer purposes, is there a separate value for the land as of the date of purchase for value comparison?
The full cash value of the land and completed improvements must be determined as of the date of completion of new construction. This is not a simple summation of the (factored) purchase price of the lot plus construction costs.
I owned and lived in a home that was destroyed in a fire in April 2000. It had a full cash value of $650,000 and I received $300,000 in insurance proceeds for it. I eventually sold it in February 2004 for $250,000 still in its damaged condition. I then found a replacement home in January 2006 for $700,000. Can my new house qualify for section 69.5 tax relief?
Yes, your new house qualifies since your replacement home is 110 percent or less than the fair market value of your original home (plus inflationary factoring of 2 percent or less per year between the time of fire and when you purchased the replacement property). Additionally, to qualify, it is assumed that you were 55 when your original property was sold and that the damage was more than 50 percent of its full cash value immediately before the fire.
The base year value to be transferred is the original property’s factored base year value just prior to the fire plus inflationary factoring for the period between the fire and the purchase of the replacement property.
I purchased a replacement dwelling in March 2004, which the assessor reappraised as of April 1, 2004. I received two supplemental assessment bills; one for the remaining three months of the 03-04 fiscal year, the other for the entire 04-05 fiscal year. My original property later sold in November 2004 and I filed a claim to transfer the base year value. Is the date of transfer the date I purchased the replacement dwelling? Wouldn’t the supplemental assessments be included in the transfer?
Assuming you meet all the qualifications of section 69.5, the base year value is transferred as of the latest qualifying date:
- the date the original property sold;
- the date the replacement property is purchased;
- the date the new construction of the replacement property is completed.
In your case the base year value should be transferred as of November 2004 because that is the latest qualifying date.
How do I file for Proposition 60/90 tax relief?
After both transactions are complete, an application must be filed with the county assessor where the replacement property is located. The claim form, BOE-60-AH, Claim of Person(s) at Least 55 Years of Age for Transfer of Base Year Value to Replacement Dwelling, may be obtained from the assessor’s office.
CLICK HERE to download the form and read instructions for Santa Clara County.
Source as of September 2016:
California State Board of Equalization www.boe.ca.gov/proptaxes/faqs/propositions60_90.htm
Are you in financial distress because of your mortgage? Do you need to get out from under a payment that has become too hard to manage because you’ve lost your employment or your ARM has reset?
If so, you are certainly not alone. Hundreds of thousands of other Americans are in that leaky boat with you, and there’s no easy way out. But you do have choices, and you should take a look at all of them before deciding what to do.
- File bankruptcy
- Let the bank foreclose
- List your home as a short sale
- Apply for a loan modification
- Contact a credit counselor and get assistance with renegotiation
- Sell to an investor
WHAT TO KNOW:
- Bankruptcy has helped some consumers. The courts now have the authority to let you keep your home and either forgive a portion of your debt or modify the terms so you can make the payments. If you’re also buried in medical bills, credit card debt, or other obligations you simply can’t meet, this might be the best solution.
But… bankruptcy stays on your credit report for 10 years and could keep you from moving forward in life. In addition, it places some restrictions on your life that you might find very unpleasant. It might not be the best choice for you.
- Foreclosure is another option. You can simply quit making the payments and stay there until they knock on the door and tell you the bank now owns your home. For some this is a chance to live rent and payment free for several months and put away some money for a deposit on a rental home.
But again – the effect on your credit rating is dire. In addition, you run the risk of a huge financial obligation that will follow you around forever. When the bank sells your house at a loss because the market has fallen, they might be able to come back on you to make up the “deficiency” between your mortgage balance and the dollars they collected from the sale of the house. This is another area where the rules keep changing, so check this before you act.
- Short Sale. If done correctly, a Short Sale could be the best option for you. You list and sell the house for the current fair market value and walk away with no money, but a fresh start. At least, that’s what will happen if you list the house with an agent who is experienced in handling successful short sales.
The truth is, your lender can also come back to you for a deficiency in a short sale. It’s one of those details that must be negotiated with the asset manager and the lender before you sign the closing papers. Unfortunately, many real estate agents today are listing short sale properties without knowing how to conduct that negotiation, and their sellers are paying the price for that lack of knowledge. In other cases, listings that begin as short sales end up going into foreclosure.
Why? Again – because the agent lacked experience and knowledge. Success in a short sale relies on 3 primary areas of expertise: Pricing, Paperwork, and Persistence. Before you list with any agent you need to know that he or she is skilled in all three areas. Otherwise, you could end up in foreclosure despite your best efforts.
To learn more about your options simply call us at (408) 892-6795 or CLICK HERE to email us. We’re here to assist any way we can.
Whether moving across the street or across the country, the local utilities guide is a handy contact info of businesses and places when in need.
AnimalControl – 408.686.3900
Assessor’s Office – 408.299.5500
Consumer Protection – 408.792.2880
FireProtection – 408.378.4010
Humane Society – 408.262.2133
Social Services – 408.755.7100
Poison Control – 800.222.1222
Tax Collector – 408.808.7900
Voter Registration – 408.299.8683
Los Altos Hills
Whether moving across the street or across the country, the Moving Checklist is a handy reminder of things to do and people to inform regarding your new location
☐ Complete a “Change of Address” form at a USPS post office
☐ Notify friends and relatives
☐ Notify your employer
☐ Notify any delivery services
☐ Notify your gardener
☐ Notify your housecleaners
☐ Credit card companies (including all store and department store credit cards)
☐ Banks and Credit Unions
☐ Notify credit monitoring service (i.e. Lifelock if any)
☐ Notify Insurance Companies such as Life, Health, Property, Auto, Dental, etc.
☐ Make sure Property Insurance Coverage for your new house is in place
☐ Update your doctors, dentists etc.
☐ Update your pharmacies
☐ Update your veterinarian’s office
☐ Update Health Insurers such as HMOs, agencies and brokers
☐ Get school transcripts (some districts require that they be sent directly from the prior school)
☐ Notify cable, gas, electric, water, telephone, fuel, and garbage companies
☐ Get refunds on any deposits made
☐ Return cable boxes, remote controls etc.
☐ Cancel Alarm service
DON’T FORGET TO
☐ Carry enough cash or traveler’s checks to cover cost of moving services and expenses until you make banking connections in new city
☐ Carry jewelry and documents yourself, or use registered mail
☐ Double check closets, drawers, shelves to be sure they are empty
☐ Leave old keys, garage door openers, broiler pans, house plans and instruction manuals needed by new owner with real estate agent
☐ Have new address recorded on driver’s license and car registration (DMV)
☐ Visit city offices and register to vote
☐ Update any Toll passes such as fast-track etc.
☐ Update any memberships such as health clubs and wine clubs
☐ Update any subscription services such as newspapers, magazines, Netflix etc.
☐ Arrange movers ahead of time (at least 2 to 3 weeks)
Download the printable PDF version here: