Home Buying in Rossmoor>Question Details

kathykwix, Other/Just Looking in Walnut Creek, CA

I am considering buying a co-op from my father's estate..what will my "coupon" be? Is the tax based upon his purchase price in 1989 or mine today?

Asked by kathykwix, Walnut Creek, CA Sun Nov 4, 2012

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BEST ANSWER
You already have good answers regarding the transfer process, I'll add 2 things based on my experience as a listing agent who sells primarily estate properties.
If there are other children/heirs they may require that you pay market value for the property. Best to check with other heirs, if there are any, to make sure they will approve the sale and the price.
Depending upon how the estate has been left, you may get a "step up in basis" on the taxable value of the property. In other words, when someone dies and leaves property to a family member the value of the original price (in your case, 1989) is adjusted to today's value (you'll have to get an appraisal) with no capital gains tax due when the property transfers to the heir (you). The county will re-assess the property when it transfers and your property taxes will be based on today's value.
You need to speak with either the lawyer handling your father's estate or a CPA to get qualified advice.
0 votes Thank Flag Link Sun Nov 4, 2012
Thanks, John.
3 of us will share the trust and we have 2 executors so it is a bit time consuming. (my brother is one of them & lives in Alaska!) The other trustee is a lawyer (my sister's husband)
My sister lives in Walnut Creek & of course I would like to have my own place there. No need to empty our parents lifetime of collections, etc if I can do this. The taxes look high, I see variations of 9729 down to 1596 for similar homes on the street..I thought Prop 13 meant I would have the same taxes as Dad, but sounds like a step-up would price me out. I do have a BPO from Rossmoor Realty.
Again, thank you for your response!
Kathy Wickes
Flag Sun Nov 4, 2012
Hi Kathy,

There are 3 different co-op HOAs in Rossmoor. They each have their own coupon or dues. The
range is from $ 582-$ 775.00 per month. Added to that monthly dues is the property tax which
is 1.25% of the current sale price. ( what you pay today for the property). If you call me I can tell you which Home Owners Association your dad's coop is in and what the monthly dues is there.

Rossmoor is a 55 and over community. You can purchase if you are younger but cannot live there
unless one of you (married couple) is 55. As an owner you can only rent out the co-op for a total
of one year. Rossmoor discourages renters, wants owner occupants. I would be happy to meet
with you and answer any and all questions re: the Rossmoor Community. I work at Rossmoor
Realty.
Karen (925-286-6070)
1 vote Thank Flag Link Sun Nov 4, 2012
Hi Karen,
I just spoke with Tina Parrish..she had given us a BPO, I know we are in Mutual 56..I only hesitate because of the taxes..wow, I see variances of about $72000 for homes on Lakeshire Drive.
Guess I'll mull this one over awhile. I hate to pass on this, but we'll see.
Thanks for your kind response! My age is appropriate, 69..
Kathy Wickes.
Flag Sun Nov 4, 2012
Actually, Kathy, you'll find that the parent to child rules have changed. If the child is planning to sell the property, there is no $7,000 Golden Rain membership fee. If the child is planning to live in the property, that fee must be paid.

These guidelines change periodically, so you always need to be aware of the current rules. Please feel free to call or e-mail with other questions.

Take care,
Jackie
925-951-7021
0 votes Thank Flag Link Fri Jun 14, 2013
Thanks, Jackie.
I did buy the condo in Lakeshire & we will enjoy our time there. Yes, Golden Rain would not wave that onerous fee.
Flag Sat Jun 15, 2013
Thanks for the "Best Answer." I have to add that if you do keep the place, it's the best value for golf in the area. We play there every few months (several friends are residents) and I like the 9 and 18 hole layouts. Drinks and dinner are also super cheap in the clubhouse.
0 votes Thank Flag Link Sun Nov 4, 2012
We had dinner at the clubhouse, really nice place.
We'll see what happens.
Thanks again,
Kathy
Flag Sun Nov 4, 2012
Hi Kathy,
The best advise is to speak with a CPA who knows the area. Also, ownership in Rossmoor is dependent on at least one of the parties being 55 yrs or older. As stated below, your property price is base on the current purchase price if it is sold and not just part his estate or an inheritance. A professional is always the best first contact. I can put you in touch with one if you are interested.
Regards,
Suzanne Looker
0 votes Thank Flag Link Sun Nov 4, 2012
Thank you Suzanne,
I am 69 years old! Property is in a trust, and I am a beneficiary. I will let you know if I need further assistance. One of the trustees is an attorney in Walnut Creek.
Regards, Kathy Wickes
Flag Sun Nov 4, 2012
Hi Kathy,
The parent and children transfer can be done without payin $7,000 grf. However you have to go thru escrow process and qualify for mutual finance requirements. Your coupon should remains same. However if your are purchasing from estate situation may different. It depend on which mutual your father's property is located. The basic monthly dues for mutual one is $574, mutual two is $ 678. I hope this answer your question and if you have any other question please feel free to call me or stop by my office located at safe way shopping center across from Rossmoor gateway.
Best,
Sue
925 212 2605
0 votes Thank Flag Link Sun Nov 4, 2012
Thank you Sue!
Mutual is 56 and I know the fee..it is the taxes that concern me. I see variations of 9729.88 down to 1596.06 for properties on the same street (Lakeshire)!
Again, thank you for your response! I am home in Maryland.
Kathy
Flag Sun Nov 4, 2012
Hi Kathy,
Usually the new purchase price with determine your taxes. If this is in Rossmoor???? the tax rate is.1.25% of the purchase price. There may be ways to save money however. Was the co-op in a trust for example. It would be good to understand the details. Please call me anytime and I would be happy to review with you.
Vikki
0 votes Thank Flag Link Sun Nov 4, 2012
Yes, Vikki, it is in Rossmoor and in a trust. I have a BPO from Rossmoor Realty, done 10/19/2012. I think it wold be deeded to me, not an outright purchase. I currently live in Maryland.
Flag Sun Nov 4, 2012
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