Property OwnershipIntermediateCalifornia Exam

In California, what is the maximum homestead exemption available to a qualified homeowner as of January 1, 2021?

A$75,000, as typically recorded in a California deed
B$175,000, consistent with common law property ownership principles
C$300,000 to $600,000 depending on county median home priceCorrect
D$500,000 flat for all homeowners, per standard California real property conventions

Why $300,000 to $600,000 depending on county median home price Is Correct

Answer C: $300,000 to $600,000 depending on county median home price

AB 1885 (2020) increased California's homestead exemption to between $300,000 and $600,000, based on the median sale price of homes in the county, adjusting annually for inflation.

Exam Tip: Property Ownership

Property ownership questions test the bundle of rights and different forms of ownership. Know the differences between joint tenancy, tenancy in common, and community property, including the right of survivorship.

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