October Homeownership Notes: Prop 13, Prop 19, Title & Keeping Property in the Family

Happy October. A few California homeownership points that often matter as much as purchase price — especially for long-term planning.

Property taxes: why similar homes have different bills

Under Prop 13, assessed value generally can’t rise more than about 2% a year until a change in ownership or new construction triggers reassessment. That’s why a longtime owner may pay far less than a new buyer next door.

Prop 19 also expanded qualifying property-tax base transfers statewide. Eligible homeowners age 55+, people with severe disabilities, and certain disaster victims may transfer their tax base to another California home — subject to specific rules. Worth checking before a move-up or downsize.

Inheriting a home: ownership can transfer; tax benefits may not

Parents can still leave multiple properties to children, but inherited homes may be reassessed to current market value. Prop 19’s parent-child exclusion is limited: typically a qualifying primary residence, value caps, and timely filings.

Example: a $2M home fully reassessed at inheritance can mean roughly $20,000/year in base property tax before local charges — plus insurance and maintenance. That math often decides whether keeping a property as a rental still works.

How you hold title matters

Title can also affect income-tax basis. A home bought decades ago for $100K and worth $2M when a spouse passes may get a different basis adjustment depending on how it’s held — separate from California property-tax reassessment rules.

Keeping a home for your lifetime — and your children’s

A funded living trust can help avoid probate, but a trust alone does not bypass Prop 19. Coordinating title, property taxes, income taxes, and estate planning is what helps families keep real estate across generations.

San Jose housing & your next move

San Jose continues to push new housing toward state goals, which over time can expand buyer options. Selling? I can help with prep, pricing, timing, Compass Market Ready Concierge, and a three-phase marketing plan. Buying? Let’s look past sticker price — HOA finances, insurance, property taxes, and assessments all shape true ownership cost.

Questions about Prop 13/19, title, or your next move in Silicon Valley? Happy to talk.

Jason Lim · REALTOR® | Compass · DRE #02444964 · (510) 480-7191 · jason.lim@compass.com