The Fallout from Prop 19

In November 2020, California voters narrowly passed Proposition 19, changing the way property taxes are assessed to provide more portability for seniors, people with disabilities, and those who lose their homes in wildfires and other disasters. But the new law also came with consequences for family transfers…

CHIC (Pearl)

Under Prop 19, there are new limits on property tax exemptions in transfers to family members. The transfer must be to a child or grandchild, that family member must make the home their primary residence within one year of the transfer, and the exemption is limited to the first $1 million of assessed value over the original base assessment. And no, gifting your property to your child would not qualify for an exemption!

GEEK (Kevin)

Another Prop 19 quirk is that the same property owner can take their base property tax assessment with them to 3 different properties anywhere in California, provided the original and replacement homes are of moderately equal value. I don’t think this will lead to a flurry of seniors on the move, but it seems a bit antithetical to the original intent of Prop 13, which was to allow Californians to age gracefully in place.

Drawing the (property) lines

Knowing the precise location of your property lines is crucial for a number of reasons, and there are just as many ways to find them. Let’s look at the how and why.

CHIC (Pearl)

I’ll take the “How?” The first thing you can do is consult your deed, the fundamental legal document that defines your property’s boundaries and dimensions. If the deed does not suffice, you could hire a professional surveyor to conduct an assessment, research property maps at your local assessor's office or land records department to access property maps. It’s also fun to hunt for physical markers like metal stakes, stone walls, fences, or even neighboring structures. And of course, it’s helpful to be on good speaking terms with your neighbors. Open communication can solve any problem.

GEEK (Kevin)

Guess that means I’m here to tell you the “Why?” Bottom line: Property lines establish ownership rights and prevent encroachment and trespassing by your neighbors and other randos. Knowing your lines also comes in handy when you’re planning a renovation or new build. The last thing you want to do is get on your neighbors’ bad side. So play nice. Happy block, happy flock. Oh, and don’t forget your property lines determine your property size and consequently, your property value. At the end of the day, if there’s any doubt, enlist the talents of a professional. The peace of mind is worth the price.