[quote=Hatfield]Let’s assume that this was a cash purchase. In some states (Nevada? Colorado?) the officers of a corporation are not a matter of public record. So it seems that you could form such a corporation in one of these states and then have the corporation buy the property.
In fact, assuming that’s possible, it seems like you could later sell the property without having the sale recorded or the property re-assessed, simply by selling the corporation.
There has to be a catch. What have I missed?[/quote]
A few problems.
First, a corporation formed in a different state must register with the state of CA before doing business here. I suspect, though I’m not positive, that purchasing real property would qualify as “doing business”. A foreign corporation has to file similar documents with the secretary of state as domestic corps, identifying officers and an agent for service of process.
Second, who’s going to buy the corporation (an out of state corp at that) and assume potential liablities of that corporation, the tax and legal headaches that would go along with maintaining the corporation and even bigger headaches of liquidating it. And legally, that transfer would have to be reported to the county assessor by the beginning of May following the sale if not sooner.
