Durante v. County of Santa Clara

Plaintiff and her sister inherited a San Jose house when their mother died in 2003. They took title as tenants-in-common. A recorded deed reflected that each owned an undivided 50 percent interest. Plaintiff lived in the home; her sister did not. In 2009, plaintiff’s sister granted her a life estate in the 50 percent interest that plaintiff did not already own. The deed reflecting that transfer was recorded. The 2009 transfer resulted in plaintiff having sole ownership rights for the rest of her life, with her sister regaining a 50 percent interest in the property on plaintiff’s death. Based on the 2009 transfer, the County reassessed the property’s value under a statute allowing for recalculation of a property’s tax basis upon a change in ownership. The new valuation resulted in a higher property tax bill. Plaintiff unsuccessfully requested a revised assessment on the ground that the creation of a life estate did not constitute a change in ownership. Plaintiff then sued, seeking a property tax refund. The court appeal affirmed a holding that the 2009 deed granting plaintiff a life estate constituted a change in ownership and the reassessment was in conformity with the law. View "Durante v. County of Santa Clara" on Justia Law