On October 9, 2011 Governor Brown signed into law SB 507 affecting Change of Ownership report penalties. The Assessor’s Offices use the documents to assist them in determining IF and HOW a change in ownership affects the assessment of Real Property and Manufactured Homes which they are charged with assessing.
These documents have been in use for a number of years and there is usually no big problem. Occasionally the Preliminary Change of Ownership Statement that is required to accompany every transfer document submitted for recording, is rejected or missing. In that chase, the Assessor sends a notice to the new owners that they must file a Change of Ownership Statement within 90 days.
HERE’S THE IMPORTANT PART! The existing penalty for failure to file that Change of Ownership Statement was $100 to $2,500.00. The new penalty for non-willful failure to file now caps at $5,000.00 for properties eligible for a home-owners exception; and up to $20,000.00 for all others.
The bill also requires corporations and other legal entities to file the statement for any change in control or ownership. Here is the link to view the full text of the bill.
Now more than ever, it is critical to make sure that your escrow company has accurate mailing address information on your Grant Deed and that the Preliminary Change of Ownership Statement is fully and accurately completed by the new owner! A few minutes can save Thousands!
Infomation provided by PJ Garcia with Beach Pacific Escrow
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