Skip to content
Pass California

Transfer of Property, 8% of the examination

Proposition 13

The 1978 measure fixing the base property tax rate at 1% of assessed value and capping annual growth in assessed value at 2%.

The cap applies while ownership does not change. A change in ownership or new construction triggers reassessment to current market value, which is why a long-held California property can carry a tax bill far below a neighbour's. Voter-approved bonds and direct assessments sit on top of the 1%, so an actual bill is normally above 1%.

See also

Mello-RoosA special tax levied in a Community Facilities District to fund infrastructure, sitting on top of the Proposition 13 base rate.

See it in a question

One question from Transfer of Property, so the term lands in the context the exam uses it in.

Transfer of Property ยท 8%Escrow

What is the essential function of an escrow in a California transaction?

Written to DRE's published topic list. Not a real examination question, since reproducing those is a misdemeanour under B&P Code section 123.

Where this is tested

Transfer of PropertyThe smallest area. Title insurance, deeds, escrow, tax aspects, and transfer under court supervision.8%Practise Transfer of Property16 questions on this area, every option explained.Practice

Other terms in this area