California Transfer Tax – Your Purchase Price Will Be Public

It is getting harder and harder for buyers to maintain privacy concerning the purchase price for real property in California. As of January 1, 2015, the time for privacy for new buyers will come to an end.

The change will not impact most of the transfers necessary for your fundamental estate planning. Funding your revocable trust with your existing real property is not considered a change of ownership for reassessment purposes, nor is it impacted by any city or county transfer taxes under Cal. Rev. & Tax Code Section 11930. Nonetheless, it is important to be aware that newly acquired property will be subject to the new disclosure rules beginning in 2015.

As reported here:

Effective January 1, 2015, every document that is submitted for recordation must show on the face of the document the amount of documentary transfer tax due.  AB 1888 prohibits the recorder from recording any deed, instrument or writing subject to the documentary transfer tax unless a signed declaration of the amount of tax due appears on the face of the document for all to see.