Question about re-fi and Prop 13

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Submitted by jpinpb on December 14, 2009 - 10:37pm

I've got a question about Proposition 13. I think I've read the answer somewhere, but now I can't find it, so maybe someone here can help me out.

My friend inherited her father's house that's paid off. Low property tax. House was originally bought in the '50's.

She is now thinking of refinancing the house and extracting equity. If she does this, will it effect the amount of what she pays in property tax?

I think I did read that if you add to a house and get permits, that will sort of trigger a red flag and cause the house to be reassessed. I just wondered if having the house appraised for a loan would set anything in motion to alert reassessment of property taxes.

Thanks.

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re-fi does not affect
Submitted by briansd1 on December 14, 2009 - 11:54pm.

re-fi does not affect property tax assessment.

remodeling a house and getting permits only cause additional assessment on the incremental value.

correct a refinance should
Submitted by sdrealtor on December 15, 2009 - 12:15am.

correct a refinance should not impact the assessed value.

I'm in your friends situation
Submitted by UCGal on December 15, 2009 - 9:16am.

I'm in your friends situation (except we paid for the house - we bought from my dad.)

Your friend needs to make sure the title and prop 13 rate were transfered. Perhaps that's her concern. Perhaps she hasn't done that step. Since her father is dead she'll need to provide death certificate, her birth certificate (showing he's her father, etc.) Since my dad was living, we had to get him to sign the form and get it notorized and provide my birth certificate. It can take a few months for the property tax rate to be transfered. They tried to stick us with a higher bill - but we were refunded the balance once the paper work went through.

She needs to transfer the title to her name or else she'll have issues when it comes time to sell. My husband's Dad and his siblings inherited a Jersey shore bungalow - it's still in their father's name. Grandpa Lucio has been dead for 25 years. It's a mess now that they're trying to sell. And a bunch of senior citizens trying to unravel what they need to do to get the title straightened out is NOT a pretty sight. (They're all in their 80's)