Property OwnershipIntermediateCalifornia Exam

Under California's Proposition 13 (1978), property tax is reassessed to market value upon:

AAny transfer of title, including gifts between family members
BA change in ownership or completion of new constructionCorrect
CThe death of the owner regardless of who inherits
DRefinancing the property

Why A change in ownership or completion of new construction Is Correct

Answer B: A change in ownership or completion of new construction

Proposition 13 limits annual property tax increases to 2% but requires reassessment to current market value upon a change in ownership or completion of new construction. Certain transfers (parent-child, spouse) may be excluded.

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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