Understanding Prop 60 & Prop 90 for 55+ Homeowers Who Live In California.

Here in California for those that are 55+ homeowners, prop 60 & 90 could be advantageous and beneficial.    Proposition 13 prohibits property tax increases until property ownership is changed.    

 Understanding prop 60:

If either spouse is over age 55 (when the old home is sold), PROP 60 allows replacement of a primary residence with a new home of equal or lesser value within certain California counties and transfer of the Prop 13 assessed valuation from the old home to the new property.  This is allowed once in your lifetime, and a spouse who has done it before 'taints' both spouses.

PROP 90

Allows counties to elect to accept transfers of Prop 13 values for moves from other counties when a primary residence is replaced with a less expensive (but see below) home. If you are over 55 and move into a county which accepts Prop 90, you may take your old, lower Prop 13 value, regardless of from which county you move.

Using Prop 90, you can sell your $400,000 San Francisco home [assessed value $80,000] and move to a new $300,000 home in San Mateo; the new San Mateo assessed value will be $80,000!

7 COUNTIES WHICH ACCEPT PROP 90 (Check To See if Still Current)

Alameda,  Los Angeles, Orange, San Diego, San Mateo, Santa Clara, and Ventura. [Contra Costa, Inyo, Kern, Riverside, Modoc, Monterey, and Marin have dropped out of the Prop 90 program.]

Props 60 and 90 apply if you "trade down" (i.e. the new home costs less than the sales price of the old home). 

  >  If you buy New Home 1^st; then sell the Old Home, you must go down in price.

  >  If you sell the Old Home1st; then buy the New Home: 

•         In 1^st 365 days after the sale of Old Home, you may go up 5% in the purchase price of New Home.

•         If you buy New Home more than 1 year from the sale of Old Home, but less than 2 years, you may go up 10%.

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Being a real estate agent/broker takes on the form of leadership. The agent/broker role is to lead the client through the home purchase or sale process and serving them with the highest customer service standards. The goal is to help the client achieve as many of their goals as possible - so that both parties feel that they are in a win-win.

Find out the benefits to selling or buying a home traditionally or non traditionally --- contact us @ 1-760=945-6652. Or visit our websites @ www.LandNSeaAuctions.com or CrescentMoonRealty.biz.

Lorraine or Loretta