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Guide

Transferring Property to a Family Member (California)

By Karla I. Vasquez, REALTOR® · Keller Williams Realty Danville · Reviewed October 2026

Quick answer

In California you can transfer a home to a family member by gift, sale or inheritance, but the property tax result depends on Proposition 19. Since February 16, 2021, a parent-to-child (or qualifying grandparent-to-grandchild) transfer only avoids full reassessment if the home is a family home that the child moves into as their primary residence, and only up to a value limit. Federal gift tax rules from the IRS may also apply. Plan the paperwork before anyone signs a deed.

What does Prop 19 change for family transfers?

The rules are much narrower than before 2021. According to the California State Board of Equalization (BOE):

  • The exclusion covers a family home (the parent's principal residence that becomes the child's principal residence) or a family farm. Rental properties don't qualify.
  • At least one child who received the home must live in it as their primary home. If two children receive it, only one needs to live there and file.
  • Grandparent-to-grandchild transfers qualify only if the grandchild's parent(s) are deceased on the date of transfer.
  • There is a value cap: the excluded amount is the home's factored base year value plus an adjusted $1 million amount. For transfers from February 16, 2025 through February 15, 2027, the BOE set that amount at $1,044,586. Market value above the cap is added to the tax base.

The deadlines people miss

The BOE lists two separate filings with the County Assessor:

  • Homeowners' Exemption (BOE-266) or Disabled Veterans' Exemption (BOE-261-G): within 1 year of the transfer or date of death.
  • Reassessment exclusion claim (BOE-19-P for parent-child, BOE-19-G for grandparent-grandchild): within 3 years of the transfer or death, or before the home transfers to a third party, whichever comes first.

Per the San Francisco Assessor-Recorder's Prop 19 presentation, late filing generally means relief applies only going forward, not back to the transfer date.

How a deed gets recorded in Contra Costa County

A new deed has to be signed, notarized and recorded with the Contra Costa Clerk-Recorder in Martinez. From the county's own pages:

  • A Preliminary Change of Ownership Report (BOE-502-A) must accompany any document that changes ownership. Recording without one adds a $20 fee, per the 2026 fee schedule.
  • The county documentary transfer tax is $0.55 per $500 ($1.10 per $1,000). The City of Richmond charges its own additional transfer tax, and El Cerrito has one too. Whether tax is due depends on the consideration and any valid exemption, so the deed must state it correctly.
  • Recording fees and the state SB2 fee may also apply unless an exemption fits.

Alameda County and San Francisco have their own recorders, forms and transfer taxes, so check the county where the property sits.

What about gift tax?

If you give a home (or part of one) for less than its value, the IRS may treat the difference as a gift. The IRS gift tax FAQ explains:

  • The donor is generally responsible for gift tax, not the person receiving it.
  • The annual exclusion is $19,000 per recipient for 2025 and 2026 ($38,000 for a married couple giving jointly). Gifts above that generally require Form 709, even if no tax ends up being owed because of the lifetime exemption.
  • The person receiving a gift generally takes the donor's tax basis. The IRS notes the rules are different for property received from an estate, which can matter a lot when the child sells later. Talk with a CPA or estate planning attorney before choosing.

Karla's tips

  • Map out the move-in plan first. Prop 19 depends on someone actually making the home their primary residence. Decide who will live there and when before the deed is signed.
  • Walk the house before you transfer it. With my KCK Construction & Remodeling background, I check roof, plumbing, electrical and foundation items so your family knows what repairs are coming.
  • Calendar the 1-year and 3-year deadlines the day the deed records.
  • Hablo español. If your parents are more comfortable in Spanish, I'm happy to walk the family through the real estate side together. As a Registered LDA I can prepare documents at your direction, but I'm not an attorney and can't choose the legal strategy for you. Call (510) 677-8695.

En español: lo básico

En California, pasar una casa de padres a hijos ya no conserva automáticamente el impuesto bajo. Con la Proposición 19, solo la casa familiar que el hijo convierte en su residencia principal puede evitar la revaluación total, y hasta un límite de valor ($1,044,586 más el valor base para transferencias del 16 de febrero de 2025 al 15 de febrero de 2027). Hay que presentar la exención de propietario en un año y el reclamo de exclusión en tres años ante el Asesor del condado. El IRS también tiene reglas de impuesto sobre donaciones. Karla atiende en español y puede ayudarle con la parte de bienes raíces; para la estrategia legal consulte a un abogado.

Sources

General information only, not legal, tax or financial advice. Rules, programs and fees change; confirm with the agency, your lender, escrow, tax professional or an attorney. Karla I. Vasquez is a REALTOR® and Registered LDA, not an attorney.