REVENUE & TAXATION (R&T) CODE for Documentary Transfer Tax Exemption;
Possible SB2 Fee Exemption

Question

The AFFIDAVIT OF EXEMPTION FROM DOCUMENTARY TRANSFER TAX form is straightforward and lists "property that is being conveyed by an Executor in accordance with an estate" as an option to check off. 
 
However, for the deed, would the proper R&T code be 11930? This property is being inherited though probate with a will. 
 
Also, would it be possible to have a Exemption From Gov’t Code § 27388.1 (SB2) Fee? New owners will be occupiers. They have actually been living there even before the decedent's death.  
 
1) Could transfer be exempt and have the "recorded concurrently 'in connection with' a transfer of residential dwelling to an owner-occupier" box checked off?  
2) What procedure/papers are needed to accomplish this: "recorded concurrently 'in connection with' a transfer of residential dwelling to an owner-occupier"  
*Will already be filing a Preliminary Change of Ownership and Affidavit of Exemption from Documentary transfer tax form with the grant deed 
 
Thanks so much!

James L. Arrasmith · Answer

Yes, code 11930 is typically appropriate for transferring property through probate when an executor is handling an estate with a will. This code helps ensure the transfer is recognized as exempt from documentary transfer tax under the R&T Code. Make sure to accurately complete the Affidavit of Exemption from Documentary Transfer Tax form, selecting the option that applies to property conveyed by an executor. 
 
Regarding the SB2 fee exemption under Gov’t Code § 27388.1, it is possible to qualify if the new owners will be owner-occupiers and have been living in the property before the transfer. To check the "recorded concurrently 'in connection with' a transfer of residential dwelling to an owner-occupier" box, you must provide proof of occupancy. This typically involves including a statement or affidavit from the new owners affirming their intent to occupy the residence. 
 
To complete the process, ensure you file the Preliminary Change of Ownership Report along with the Affidavit of Exemption from Documentary Transfer Tax and the grant deed. Additionally, submit any required documentation that verifies the new owners’ occupancy status. It may be helpful to consult with the county recorder’s office to confirm you have all necessary forms and information to successfully apply for these exemptions.

Q: REVENUE & TAXATION (R&T) CODE for Documentary Transfer Tax Exemption; Possible SB2 Fee Exemption