Legal Question in Real Estate Law in California

I bought a distressed property at 100K below market value in July 2009 and now need to add a name to the deed. I have been informed that when I add the name of a coinvestor to the deed that I will be reassessed at the higher market value thus increasing my taxes beyond what I can afford due to the money required to repair the property.

Is there a way to avoid this situation? Do I need to consult a real estate attorney?

Thanks.

-John


Asked on 8/11/09, 3:27 pm

1 Answer from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

The proportionate interest in the property sold to the investor would probably be reassessed at the value reported when the deed is recorded. The assessor can always do a field appraisal, but I don't think that happens too often, and when it does, it may be random and have nothing to do with the transaction. Maybe there is some other way to deal with this "need" to addthe investor to title - such as giving him an option to acquire an interest, or handling the relationship with a contract that doesn't need to be recorded. Yes, a lawyer could help. Avoid the temptation to report a sale of an interest at a lower price than was actually paid.

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Answered on 8/11/09, 5:11 pm


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