San Clemente Real Estate BlogRecently posted or modified blog posts in the category - California Housing Laws + News https://www.ryanschrammre.com/blog/Copyright RyanSchrammRE.com2023-10-09T09:47:02-07:00tag:ryanschrammre.com,2012-09-20:30704Prop 19 Explained [PART TWO] | What is Proposition 19 and How Does it Work?
If you are not familiar with Proposition 19, check out Part One of this series here ➡️ <a href="https://youtu.be/2cZ9caMYvNs" target="_blank">https://youtu.be/2cZ9caMYvNs</a>. Basically, this new law allows California homeowners aged 55+ to sell their primary residence and transfer their property tax base to their new residence.
Before Proposition 19 passed, Proposition 60 and 90 were in effect, which allowed homeowners 55+ to transfer their tax base, but with many more limitations: only certain counties participated, the transfer could only be used one time, and the new property had to be equal or lesser value than the original.
With Proposition 19, a tax base transfer can be completed anywhere in California, homeowners can utilize a tax base transfer up to three times, and the replacement property can be more expensive than the original home.
A question I get often is, “How do I do this?” or “How do I apply for this?” You can have your real estate attorney do this for you or you can do it yourself. Each county will have a form that you, as a homeowner, can fill out and submit to the county where your new primary residence is located.
If you have a specific question that was not answered here, please reach out to me at <a href="sms:9496206206">(949) 620-6206</a>. I would love to help you strategize and prepare in the best way possible.2023-10-09T09:42:47-07:002023-10-09T09:47:02-07:00Ryan Schrammtag:ryanschrammre.com,2012-09-20:23570Prop 19 Explained | California Property Tax Transfer
If you're a subscriber to my YouTube channel or you've been watching me for long enough, you've probably seen me do a couple of videos on Proposition 19. Because it's such an important tool to so many of my clients, I want to do a quick refresher for you today.
Welcome to my YouTube channel. I'm Ryan Schramm, a realtor here in South Orange County. My channel is custom-tailored to be all about the lifestyle here. What's it like to live here? What's it like to buy or sell a house? What is the health of the housing market at this point in time? If you're interested in that or if you find value in that, please subscribe to my channel.
So let's rewind a little bit. Before Proposition 19, here's what you had.
Homeowners 55 years or older or severely or permanently disabled could apply to transfer their property tax base if they met four criteria:
1. You could transfer your tax base one time and one time only.
2, The home that you'd be switching the property tax base to (the replacement property), had to be in the same county, or it had to be in a county that reciprocates.
3. The new property had to be of equal or lesser value.
4. The new home had to be purchased within two years of selling the original primary residence.
With the implementation of Proposition 19, homeowners now have more wiggle room and flexibility to take their original primary residence tax base with them to a new home.
So what's happening under the new regulations for Proposition 19?
To be eligible, you must be 55 years of age or older, permanently or severely disabled, or a victim of wildfire or natural disaster. If you meet one of these criteria, you can transfer the property tax from your original primary residence to a replacement property under these guidelines:
1. The replacement property can be located anywhere in the state of California.
2. The transfer can take place regardless of value. So, for example, if the primary residence sold for $1,000,000 and you were only paying $4,000 a year for property taxes, you can now transfer that tax to a $2,000,000 residence and keep the $4,000 original tax base. Now, of course, you're going to have to pay extra tax on the difference between $1,000,000 and $2,000,000, but that's still a significant savings.
3. Both the sale of the primary residence and the purchase of the replacement property must be completed within two years.
4. Eligible homeowners can take advantage of this transfer up to three times.
Now, I've had several of my clients take advantage of transferring their property tax bases. It's an incredible tool, and here's what you need to know if you plan on doing this:
1. The setup for the transfer does not take place in the escrow. You need to have both the primary home sold and the replacement home purchased, then you're going to go ahead and file for the new property tax to be in effect.
2. You can find the property tax base transfer paperwork online, but it needs to be filed in the county where you purchased the replacement property.
3. If you're in the unique circumstance where you're going to purchase the replacement property before you sell the original primary residence, you can absolutely do that. You just need to sell the original primary residence within two years of purchasing the replacement home.
4. If you took advantage of Prop 60 or 90 in the past, as so many of my clients did, you still can go and utilize Proposition 19 up to three times.
5. There's no time limit on which you had to occupy the original primary residence. Check with your CPA on that to make sure that it is considered your primary residence, but so long as that is true, you can apply for the Proposition 19 transfer.
Proposition 19 allows for so much more flexibility and movement for people that were otherwise limited by living in a house with such a low property tax basis. If you wanted to move somewhere and you couldn't because of that lower tax, Proposition 19 has opened up other options.
I have to disclaim because there are complexities to this, it is very important to have a conversation with me and with your tax professional to make sure that you qualify before you set up a strategy to complete a Proposition 19 transfer.
Shoot me a text message if you have questions on this - (949) 620-6206. A lot of planning is involved, so it's important to reach out six months, 12 months, or even two years before you plan on doing this so we can put an effective strategy in place.
Here is the link to a great resource provided by the state summarizing everything we discussed, <a href="https://www.boe.ca.gov/prop19/">https://www.boe.ca.gov/prop19/</a>.
2022-12-15T13:16:32-07:002022-12-15T13:52:45-07:00Ryan Schrammtag:ryanschrammre.com,2012-09-20:17330What Are Mello Roos Taxes? | Are Mello Roos Worth the Money?
Mello Roos - have you heard of them?
They are an additional property tax levied against a home in a newer neighborhood or development. Mello Roos are paid annually and the amount is typically 1-1.5% of the property’s purchase price.
These taxes are used to pay off bonds issued to developers when the communities were built to support infrastructure, school systems, and everything necessary to facilitate the development of the community.
Luckily, these bonds don’t last forever. A common Mello Roos bond typically lasts for 20-25 years, but by California law, they cannot exceed 40 years.
So, are Mello Roos worth it? That is ultimately up to you and what type of community you’re looking for.
If you have any questions about Mello Roos taxes or finding the right neighborhood for your lifestyle, schedule a call with me through this link, <a href="https://calendly.com/ryanschramm">https://calendly.com/ryanschramm</a>.2022-01-28T10:09:00-07:002022-01-28T10:22:56-07:00Ryan Schrammtag:ryanschrammre.com,2012-09-20:16928The Value of an ADU | Do ADUs add value to a property?
Have you thought about adding an ADU, an accessory dwelling unit, to your property? Are you curious how it will impact your home's value?
In some of America's biggest cities, homes with ADUs are priced significantly higher than those without. Not to mention, California is continually passing new legislation to make adding an ADU to your property a much easier process.
Check out this video to get the full rundown.
If you want more information on building an ADU and how it will impact your home's value, schedule a call with me through this link, https://calendly.com/ryanschramm - I'd love to chat!
Source: Research, Porch. “2021 Study: How Much Value Do Granny Flats and Other Accessory Dwelling Units Add to a Home?” Porch.com, 7 Sept. 2021, https://porch.com/advice/state-of-adu-market-2021.2022-01-02T22:42:00-07:002022-01-02T23:06:58-07:00Ryan Schrammtag:ryanschrammre.com,2012-09-20:15906An end to single-family zoned neighborhoods? | California SB 9 and SB 10 Explained
In the middle of September, Governor Newsom signed into law Senate Bill 9 and Senate Bill 10. If you haven’t heard about these bills, their intention is to alleviate California’s housing crisis by effectively putting an end to traditional single-family zoning in neighborhoods statewide. How could this affect you and your neighborhood?
Taking effect January 1, 2022, SB 9 and SB 10 will make it easier for Californians to build more than one housing unit on many properties that have been exclusively zoned for single-family homes for decades. It will also give cities greater flexibility to place small apartment complexes in neighborhoods near public transit.
Stay tuned to find out the specifics of each bill.
If you have any questions about how these new laws can potentially affect you and your neighborhood, schedule a call with me through this link, https://calendly.com/ryanschramm - I'd love to be a resource for you!2021-10-17T15:51:00-07:002021-10-17T16:03:21-07:00Ryan Schrammtag:ryanschrammre.com,2012-09-20:14268What is Prop 19? Pros and Cons of Proposition 19
Last year, Californians voted to pass Proposition 19 which allowed those who are 55+ or disabled more flexibility in transferring their property tax basis to a new primary residence. So what exactly does Prop 19 allow you to do? Are there any downsides to the new legislation? Find out in this video! 2021-06-10T19:26:00-07:002021-06-10T19:29:36-07:00Ryan Schrammtag:ryanschrammre.com,2012-09-20:8278What is an ADU?
A question I’ve been getting often - what is an ADU?
ADU is an acronym for Accessory Dwelling Unit, sometimes referred to as a granny flat, casita, apartment, or garage conversion.
Effective January 1, 2020, the California legislature updated laws to maximize the development of ADUs statewide. These laws include allowing ADUs to be built within single-family zoned areas, reduced parking requirements, and preventing homeowners associations from banning or restricting construction of ADUs.
Take a look at a few of the key laws below:
Processing Timelines (AB 68/AB 881) - Requires a local agency to ministerially approve or deny a permit application for the creation of an accessory dwelling unit or junior accessory dwelling unit within 60 days from the date the local agency receives a completed application.
Lot Size (AB 68/AB 881) - Prohibits an ordinance from imposing requirements on minimum lot size.
Parking Requirements (AB 68/AB 881) - Parking requirements for accessory dwelling units shall not exceed one parking space per unit or per bedroom, whichever is less. These spaces may be provided as tandem parking on a driveway. When a garage, carport, or covered parking structure is demolished in conjunction with the construction of an accessory dwelling unit or converted to an accessory dwelling unit, the local agency shall not require that those offstreet parking spaces be replaced.
Owner Occupancy (SB13) - A local agency shall not impose an owner-occupant requirement on an accessory dwelling unit permitted between January 1, 2020 to January 1, 2025, during which time the local agency was prohibited from imposing an owner-occupant requirement.
Maximum Size (SB13) - The total floor area of an attached accessory dwelling unit shall not exceed 50 percent of the proposed or existing primary dwelling living area or 1,200 square feet. The total floor area for a detached accessory dwelling unit shall not exceed 1,200 square feet.
HOA Restrictions (AB 670) - Any covenant, restriction, or condition contained in any deed, contract, security instrument, or other instrument affecting the transfer or sale of any interest in a planned development, and any provision of a governing document, that either effectively prohibits or unreasonably restricts the construction or use of an accessory dwelling unit or junior accessory dwelling unit on a lot zoned for single-family residential use that meets the requirements of Section 65852.2 or 65852.22 of the Government Code, is void and unenforceable.
So, what does this mean?
We don’t know exactly how these laws will impact us and our neighborhoods, but we can conclude that there will be more people living in single-family zoned neighborhoods.
As always, call or text me with any questions. I would love to hear from you - (949) 212-1433. 2020-03-13T15:54:00-07:002020-03-14T22:05:07-07:00Ryan Schrammtag:ryanschrammre.com,2012-09-20:8149What is Proposition 13?
Proposition 13 is one of the most recognized propositions in California and it directly impacts property taxes on all residential and commercial property. It is currently on the ballot to be voted on this March to be amended to the new Proposition 13.
So, how does Proposition 13 affect property owners?
Before the bill was passed in 1978, the county tax assessor would reassess your property value every year, continually increasing your property tax in an escalating market. To keep taxes at a more manageable number, the state government proposed Proposition 13 which capped any property tax increase to 2% per year.
It is crucial for you to know that you are voting for a change in Proposition 13 in just a few short days. Do your research and look into what the new Proposition 13 is proposing and how it can directly affect you and your family.
Orange County has recently restructured how residents are able to vote. Click <a href="https://ocvote.com/vc/web/voting">here</a> to see what option is best for you to make your vote count this election.
If you have any questions about how this may affect you and your home, I would love to be a resource. Please feel free to give me a call or shoot me a text anytime - (949) 212-1433.2020-02-24T22:31:00-07:002020-02-24T23:14:13-07:00Ryan Schramm