Removing your “partner” from title is easy, if she is willing to execute a deed transferring her JT interest over to you. That is NOT your problem.
The complication has to do with the “change in ownership” rules for purposes of (a) reassessment, and (b) imposition of local transfer taxes and the state Documentary Transfer Tax.
What you are looking for is an “exemption” from reassessment. There are a number of them under the California Revenue and Taxation Code. But none seem to fit your situation.
Here are a few: (a) transfers between husbands and wives–NOPE (b) correcting names, such as a name change caused by marriage-NOPE; (c) transfers to create, modify lender’s interests or security interests—NOPE; (d) creation of a JT where the transferor remains as a JT?—NOT YOUR FACTS; (e) returning property to the person who created the JT? --NOPE–you guys created it together. see below
plus exemptions for transfers to living trusts, transfers to children, replacing a personal residence, etc.
You might have a shot here with returning the property to the person who created the joint tenancy. From your facts above, it appears the two of you created it together, so the exemotion does not seem to fit squarely. But have your tax advisor kick the tires, read the regulations and the code, and see if there is any case law that expands on this particular exemption.
You may be stuck with a 50% reassessment, plus some transfer taxes.
Complicated problem removing someone from title - Posted by Will Hues
Posted by Will Hues on April 08, 2005 at 19:25:10:
California single family home. I bought the home with a partner who I lived with for 16 years in all, five years in home in question. We were never married. We are both on title as joint tenants, an unmarried man and an unmarried woman. We separated ten years ago and we made an equitable buy-out agreement which we handled privately. I payed her monthly and I took over all of the tax, insurance and mortgage for the home from the time of our first payment. She wanted to stay on title as colateral. I finished paying this last December and now I want to remove her from title. I called the county assessor’s office and was informed that should I record a title change under our circumstances, they will reassess her 50% of the house at current appraised value which would mean a very large increase in property taxes for me since the property has really appreciated much fasted than the normal yearly property tax increase. I have talked with some title companies and they are not very good with ideas to avoid this problem. I am looking for the correct way to have the property transfered 100% into my name.