California Revenue and Taxation Code 62.3 – (a) Notwithstanding any other provision in this chapter, a …
(a) Notwithstanding any other provision in this chapter, a change in ownership shall not include a transfer of a cotenancy interest in real property from one cotenant to the other that takes effect upon the death of the transferor cotenant if all of the following conditions apply:
(1) The transfer is solely by and between two individuals who together own 100 percent of the real property in joint tenancy or as tenants in common.
Terms Used In California Revenue and Taxation Code 62.3
- Affidavit: A written statement of facts confirmed by the oath of the party making it, before a notary or officer having authority to administer oaths.
- Intestate: Dying without leaving a will.
- Joint tenancy: A form of property ownership in which two or more parties hold an undivided interest in the same property that was conveyed under the same instrument at the same time. A joint tenant can sell his (her) interest but not dispose of it by will. Upon the death of a joint tenant, his (her) undivided interest is distributed among the surviving joint tenants.
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
- Tenancy in common: A type of property ownership in which two or more individuals have an undivided interest in property. At the death of one tenant in common, his (her) fractional percentage of ownership in the property passes to the decedent
(2) As a result of the death of the transferor cotenant, the deceased cotenant’s tenancy in common or joint tenancy interest in the real property is transferred to the surviving cotenant, which results in the surviving cotenant holding a 100-percent ownership interest in the real property immediately after the transfer, thereby terminating the cotenancy.
(3) For the one-year period immediately preceding the transfer, the real property was coowned by the transferor and the transferee, and both cotenants have been the owners of record of that real property.
(4) The real property constituted the principal residence of both cotenants immediately preceding the transferor cotenant’s death.
(5) The transferor and the transferee continuously resided at that residence for the one-year period immediately preceding the transfer.
(6) The transferee has signed, under penalty of perjury, an affidavit affirming that he or she continuously resided with the transferor at the residence for the one-year period immediately preceding the transfer.
(b) A transfer of cotenancy interest in real property from one cotenant to the other shall take effect upon the death of the transferor cotenant under any of the following circumstances:
(1) Pursuant to the transferor cotenant’s will or trust, upon the death of the transferor cotenant.
(2) Through intestate succession from the transferor cotenant.
(3) By operation of law, upon the death of the transferor cotenant.
(c) The exclusion provided by this section shall not apply to any transfer of real property interests for which a separate exclusion in this chapter applies.
(d) For purposes of this section, both of the following apply:
(1) “Cotenancy interest” means an interest in real property held only as tenants in common or joint tenants.
(2) “Principal residence” means a dwelling eligible for either the homeowners’ exemption or the disabled veterans’ exemption.
(e) This section shall only apply to transfers that occur on or after January 1, 2013.
(Added by Stats. 2012, Ch. 781, Sec. 1. (AB 1700) Effective September 29, 2012.)