Home Buying in 90638>Question Details

Itsmelu, Home Seller in La Mirada, CA

can you tell me what banks will do a father to son sell of a house with the prop 13 tax bill?

Asked by Itsmelu, La Mirada, CA Tue Oct 26, 2010

we are looking to sell our house to my son. under the prop 13 tax the house will not be reassessed and the taxes on the house will be the same as ours. we were told there only 4 banks in the united states that will do this. i was wondering if you knew who they were and how we could get in touch with one of them regarding this. thank you

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Jimmy Esqueda’s answer
Banks have nothing to do with the re-assessment of your property. Your son should be able to obtain financing wherever he qualifies. The exemption to transfer the prop 13 taxes falls under prop 58. Just need to file a Claim for Reassessment Exclusion for Transfer between Parent and Child at time of closing. See link below.
1 vote Thank Flag Link Tue Oct 26, 2010
ITSMELU,

Interfamily transfers fall under prop 90 (or maybe 92, I get them confused) and are exempt from re-assessment. The transfer msut be done in accordance with those guidelines so consult a tax professional to ensure that the transaciton is handled in the proper way.
Web Reference: http://bob2sell.com
0 votes Thank Flag Link Tue Oct 26, 2010
I don't know why selling to your son is such an odd or difficult transaction that only four banks in the U.S. will do it. There is absolutely nothing in Prop 13 that affects a bank loan. If your son is otherwise qualified, has good credit and an acceptable down payment, any mortgage broker ought to be able to find him a good deal.

Just a thought...if you are using this sale as a part of your estate planning, you should consult with a good financial planner. This may not be your best way of transferring your property at this time.
0 votes Thank Flag Link Tue Oct 26, 2010
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