On November 3, 2020, California voted in favor of Proposition 19. Passing this proposition gives a new property tax break to older homeowners while at the same time increasing property taxes for those inheriting their parents' or grandparents' properties.

Proposition 58: The Proposition Prior to Proposition 19

Proposition 58, is currently in effect and allows parents to transfer a primary residence to their children without any new fair-market reassessment, regardless of how the children chose to use the real property. In other words, this allows children to gain the same property tax basis that their parents enjoyed and the primary residence could be transferred with no cap on assessed value of the real property.

Additionally, before Proposition 19 was passed, secondary property, such as vacation homes, rental property, or non-residential property could be transferred with up to $1 million of the assessed value being exempt from the increase in property taxes regardless of its use by the children.

The Difference Between Tax Assessment and Fair Market Assessment

A tax assessment is the value attached to real property by the local government, specifically for the purpose of collecting tax money that is used to support the local community. On the other hand, a fair market assessment is the value attached to real property that is based on how much the real property on the open market would sell for.

Who is Prop Proposition 58 Most Favorable To?

Proposition 58 is most favorable to families that have owned real property with low assessed values. For instance, a 60-unit apartment complex in the San Francisco Bay Area purchased by a married couple in 1979 may have an assessed value just under $2 million. Under Proposition 58, the couple could transfer this property to their children without reassessment.

When Will Proposition 19 Become Effective?

Proposition 19 replaces Proposition 58. Beginning February 16th, 2021 the ability to transfer $1 million of assessed value of other property that is not the primary residence is completely eliminated.

Two Conditions Must Be Meet Under Proposition 19

The ability to transfer a primary residence between parent and child without reassessment will not apply unless two conditions are made. The two conditions are: 1) the parents' primary residence must also become the child's primary residence, and 2) the fair market value of the primary residence at the time of transfer cannot exceed the parents' assessed value by more than $1 million. If, at the time of transfer, the difference between the assessed value and the fair market value of the home is more than $1 million, the new assessed value will be the fair market value less $1 million.

For example, if parents purchased a rental property in 1940 for $50,000, and the value of the rental property is more than $1 million when it is transferred to a child after February 16, 2021, the parents' tax basis does not pass to that child. Therefore, the child will now have to pay the property tax based on the assessed fair market value.

Examples of how Prop 19 Works

Example of how Prop 19 works: a parent owns a home that is his primary residence and has a rental property in California. The home has an assessed value of $500,000 and a fair market value of $3 million. The rental property also has an assessed value of $500,000 and a fair market value of $2 million. Even though the properties have different fair market values, their property tax liability is similar because they have the same assessed value. The combined annual property tax of both properties with a property tax rate of 1.25% is $12,500. The parent now wishes to transfer both the properties to his daughter.

Result Before Prop 19

Result Before Prop 19: there is no reassessment on the transfer of either the home or the rental property from parent to daughter. The home can be transferred to the daughter regardless of its value because it is the parent's primary residence, and the assessed value of the rental property falls below the $1 million threshold.

Thus, the combined annual property tax will remain at $12,500. There is no restriction on the daughter's use of either property and the daughter may use both as investment properties if she so chooses.

Result with Prop 19 in Effect

Result with Prop. 19 in Effect: there is an adjustment to the assessed value of the home and a full reassessment on the rental property. The new assessed value of the home is $2 million because the fair market value exceeds the assessed value by more than $1 million (in that case, the calculation for the new assessed value is the fair market value of $3 million less $1 million). The new assessed value for the rental property is its fair market value of $2 million because no exemption to reassessment applies for transfers of real property from parent to child other than the primary residence.

Thus, the new combined annual property tax will be $50,000. Furthermore, the daughter has to use the family home as her primary residence or else the home will be reassessed to its fair market value of $3 million, which would increase the combined annual property tax for both properties to $62,500.

Los Angeles Real Estate Attorney

For more information on Proposition 19 we invite you to contact Our Los Angeles real estate attorney at {meta.phoneFormatted}.

What is an accessory dwelling unit?

An accessory dwelling unit (ADU) is defined as an additional living space to a property that:

• Can be detached or attached to the property
• Is located on the same lot as a property
• Contains facilities that allow for adequate living independent of the main property (kitchen, bathroom, bed, etc.)

These units can be built from scratch, but it is more common for ADUs to be converted from something else, such as a detached garage or a large shed.

Junior ADUs are classified separately from ADUs, as they are not required to have their own bathroom/sanitation facilities, and they also must be less than 500 square feet.

Can I build an accessory dwelling unit on my property?

If you own a house, then you can build an ADU on your property if you so choose. Neither your HOA or your municipal government can bar you from building an ADU thanks to recent legislation aimed to boost the amount of housing available. Keep in mind that this only applies to owners of houses, and HOAs can still regulate the construction of ADUs in condominium complexes.

While California homeowners can freely build ADUs, most municipalities subject these dwellings to regulation and have a rigid permit process in order to construct one. In order to get a permit, you will have to submit an application with your local government, that typically requires a detailed site plan and safety precautions of the project.

Once I build an ADU, what regulations is it subject to?

Renting out your ADU is legal in California for long-term rentals, but for short-term rentals of less than 30 days (Airbnb), many HOAs will strictly prohibit them. All rental restrictions that would apply to the main property will also apply to an ADU.

A local government or HOA may limit the maximum size of an ADU, but may not make this maximum less than 850 square feet., or less than 1,000 square feet for those with more than 1 bedroom. They must also allow the maximum height to be up to 16 feet at least.

What Must the Prosecution In Order to Be Found Guilty of Penal Code 286(a) Sodomy?

• Participated in an act of sodomy with a minor who was under the age of 18 years old: California Penal Code Section 286(b)(1);
• Is over the age of 21 years and participated in the act of sodomy with a minor who is under 16 years of age: California Penal Code Section 286(b)(2);
• Participated in an act of sodomy with a minor under the age of 14 years and the age difference between the defendant and the minor was more than 10 years: California Penal Code Section 286(c)(1);
• Committed an act of sodomy when the act was accomplished against the victim's will by means of violence, force, duress, menace, or fear of immediate bodily harm on the victim or another person: California Penal Code Section 286(c)(2)(A);
• Committed an act of sodomy with a minor under the age of 14 when the act was accomplished against the victim's will by means of violence, force, duress, menace, or fear of immediate bodily injury on the victim: California Penal Code Section 286(c)(2)(B);
• Committed an act of sodomy with a minor under the age of 14 or older when the act was accomplished against the victim's will by means of force, violence, duress, menace, or fear of immediate and unlawful bodily injury on the victim: California Penal Code Section 286(c)(2)(C);
• Committed an act of sodomy where the act was accomplished against the victim's will by threatening to retaliate in the future against the victim or any other person: California Penal Code Section 286(c)(3);
• While acting in concert with another person, either personally or aiding and abetting that person, committed an act of sodomy against the victim's will by means of, violence, force, duress, menace, or fear of immediate bodily injury on the victim or another person: California Penal Code Section 286 (d)(1);
• Voluntarily acted in concert with another person, either personally or aiding and abetting that person, committed an act of sodomy upon the victim who was under 14 years of age, when the act was accomplished against the victim's will by means of force, violence, duress, menace, or fear of immediate bodily injury on the victim or another person: California Penal Code Section 286(d)(2);
• While voluntarily acting in concert with another person either personally or aiding and abetting that person, committed an act of sodomy upon a minor under the age of 14 or older the act was accomplished against the victim's will by threatening to retaliate in the future against the victim or any other person, and there was a reasonable possibility that the perpetrator would execute that threat. California Penal Code Section 286(d)(3);
• Committed an act of sodomy which was accomplished at a time the victim was unconscious of the nature of the act: California Penal Code Section 286(f);
• Committed an act of sodomy that was accomplished at a time the victim was incapable due to a mental developmental or disorder or physical disability and the defendant knew or reasonably should have known that. California Penal Code Section 286(g).

What are the Penalties for A California Penal Code 286 Sodomy Conviction?

What are the Penalties for a Misdemeanor Sodomy Conviction?

• Up to one year in a county jail
• A fine of up to $1,000
• Misdemeanor probation

What are the Penalties for a Felony Sodomy Conviction?

• 16 months, two or three years in California State Prison
• A fine of up to $10,000
• Felony probation

What are the Penalties for a Felony Penal Code Section 286(b)(2) Conviction?

• 16 months, two or three years in California State Prison
• A fine of up to $10,000
• Felony probation

What are the Penalties for a Felony Penal Code Section 286(d) Conviction?

• Five, seven, or nine years in California State Prison
• A fine of up to $10,000
• Felony probation

Other Penalties Convictions under California PC Section 286

• Three, six, or eight years in California State Prison
• A fine of up to $10,000
• Felony probation

Glendale Criminal Defense Attorney

• Create a Will

A will is a legal document that outlines where your wealth and property will go upon your passing. This document alone is not sufficient to protect all of your assets, but it is perhaps the most important document in doing so.

Without a will, the rules of California interstate succession will govern how all of your assets are distributed. A will is paramount to ensuring that you are the one choosing where your assets will go, not the government.

Unfortunately, it is usually not preferable to have a will alone since wills but be admitted to probate in California, which is an incredibly long and complex process that many choose to avoid. The way of doing so is to combine the will with another document, known as a living trust.

• Create a Living Trust

Creating a trust whilst one is still alive is a common way to get around the dreaded process of probate. In a living trust, the owner of the assets typically designated themselves as the initial trustee who owns all the assets for the benefit of specified beneficiaries. Upon their death, the agreement of the trust designates who will take over as the trustee and how the assets will be distributed to beneficiaries.

In addition to avoiding probate, most living trusts also allow the owner to change or even revoke the trust if they'd like to while they are still alive, meaning that the property owner doesn't actually give up control over the property until their death.

• Gain Power of Attorney

Power of attorney grants another individual (typically an attorney) with the power to make financial decisions regarding your assets on your behalf. People often opt of "durable" power attorney, which mean that your representative can make these decisions even after you pass away.

There are several reasons why seeking power of attorney is preferable. The first is that it is always a good idea in general to get legal help from an individual who has a thorough understanding of the laws regarding wills and trusts. Another reason is that if you are not in a condition where you can make a sound decision about your assets, or you pass away, it is best to have someone who knows the law and your interests be able to make complex decisions for you.

• Gain Healthcare Power of Attorney

Rather than giving someone power to make decisions regarding finances, healthcare power of attorney gives someone power to make decisions regarding your health and medical treatment if you are not able to. Many choose to gain healthcare power of attorney in case they have a terminal illness or find themselves in a state in which they cannot adequately make decisions regarding their own health. It helps people ensure they received their preferred treatment when they are alive, and that their physical body (i.e. organs) are protected upon death.

What Are the Bump Stock Laws in California?

What is a Bump Stock?

• "A device designed or redesigned to be attached to a semi-automatic firearm, which allows the firearm to discharge two or more shots in a burst by activating the device; or
• A manual or power-driven trigger activating device constructed and designed so that when attached to a semiautomatic firearm it increases the rate of fire of that firearm."

What Are the Penalties for Possessing a Bump Stock?

• A misdemeanor penalty of violating PC 32900 can lead up to one year in county jail.
• A felony charge can range between 18 months and 3 years in jail.
• After 2018, federal law states that bump stock owners must destroy or surrender their bump stocks to the ATF. If not they can face up to 10 years in federal prison and fines up to $250,000.

What Are the Defenses for Possessing a Bump Stock?

Confusion About Bump Stocks and Rifles

• It is in the possession of a historical society or museum.
• Authorized use for a movie or video production.
• You are someone who sells or rents bump stocks to museums or entertainment productions.
• You are law enforcement.

Los Angeles Criminal Defense Attorney

What is the tenants' right to repairs?

In California, tenants are afforded the right to live in a habitable environment. This requires the landlord to make any repairs to the property that make it uninhabitable. Landlords that rent uninhabitable and dilapidated properties to tenants are commonly referred to as "slumlords."

What is a landlord legally required to fix?

The law requires an owner of a rental property to make any repairs that would cause the property to be uninhabitable for any reason. California Civil Code section 1941.1 and section 1941.3 describes several requirements needed for a home to be habitable. They include:

• Weather protection and waterproofing
• Sanitary premises with adequate receptacles for trash and waste disposal
• Working hot and cold running water
• Functional toilet and sink
• Working electricity
• Functional doors, windows, and locks
• Well-kept floors and walls
• No asbestos, lead, or dangerous chemicals
• No nuisances*

A "nuisance" is legally defined as something that is reasonably dangerous or obnoxious that the landlord permits on the premises. They do not necessarily have to be in a tenant's living area but instead could be anywhere on the landlord's property. Some examples of this include:

• Gang activity in the parking lot of an apartment building
• The presence of black mold near a communal laundry area
• Another tenant has 3 large dogs that go outside and bark loudly every morning

What do landlords not have to fix?

A property owner is not required to repair damages that are too minor to interfere with the habitability of the home. A leaky faucet, for example, maybe annoying to a property owner, but it is not considered a characteristic of an uninhabitable home.

Every rental contract is different, and it is common for an agreement to state that landlords must pay for minor repairs even if they do not legally interfere with a property's habitability. Check your rental contract for special clauses that make the property owner cover repairs that are solely aesthetic.

What is "constructive eviction?"

This is when the habitability level of a property becomes so poor, that a tenant is basically forced to move out. Some examples include:

• The mold buildup has become so bad in an apartment bathroom that the tenant living there became ill and had to move into a hotel.
• The unit next to a tenant is home to a band that frequently plays loud music late at night. It has become so bad that the tenant can barely sleep, so after 3 months of this, she leaves.
• The presence of cockroaches on a property is unaddressed, so the cockroaches get into a tenant's refrigerator and pantry daily, causing her to move out.

If your landlord has constructively evicted you, you not only are entitled to recover damages to you and your belongings, but you also may be able to have your rent paid back to you for the months that you had to deal with the issue. If your living conditions are so bad that you had no choice but to move out, you should get legal help in order to be financially compensated.

What Does It Mean if My Property Title Has a "Cloud?"

If you have a "cloud" on your property title, that means that the property has some type of outstanding lien or unresolved issue that makes it possible for the property to be confiscated in place of payment. Some common types of clouds on titles are:

• Liens from a mechanic, bank, healthcare, etc.
• Easements
• Probate issues (Wills)
• Boundary disputes

Many of these issues can go unnoticed for years, only coming up during a title search. Given that title searches typically only take place during the buying and selling process, clouds on titles often cause complications for property owners and prospective buyers.

Should I Be Concerned if I Find a Cloud on My Title During the Selling Process?

Generally, yes. People looking to buy are generally weary of purchasing a property with a cloud on the title, given that this can invalidate the owner's right of ownership over the property. There may also be laws, depending of the type of cloud, that prevent you from selling a home before the issue with the title is resolved.

How Can I Get a Cloud Title Removed From My Property?

Fortunately for property owners, many types of clouds on titles can be fixed through the use of a "quiet title action." This is basically when a property owner presents the title to a court, who decide who must resolve the title. The information one would submit includes:

• A description of the property that is the subject of the action. This must include both the legal description and the street address or common designation, if any.
• The title of the plaintiff as to which a determination of quiet title is sought. If the complaint is based on adverse possession, the complaint must allege the specific facts constituting the adverse possession.
• The adverse claims to plaintiff's title.
• The date as of which the determination is sought. If the determination is sought as of a date other than the date the complaint is filed, the complaint must include a statement of the reasons why a determination as of that date is sought.
• A prayer for the determination of plaintiff's title against the adverse claims.

Glendale Real Estate Attorney

Be aware that a quiet title action is different than removing a cloud title, which may be necessary to completely void the record of the cloud on your title depending on the type of cloud it is. Consult with a real estate attorney in order to see if your title can be solved by quiet title action, or if it is necessary to seek cancellation. We invite you to contact our Glendale real estate attorney today at {meta.phoneFormatted} for a consultation.