Q: My brother owes 10% of the house and I owe 90% of the house. My brother wants to do a quit claim deed and give me the

A: Unfortunately, almost all exchanges of real estate in California will cause the property tax rate to increase. There are VERY FEW exceptions (one such exception applies when a person transfers real estate to their spouse.) There are no exceptions for property transfers to siblings, cousins, nephews, nieces, or even people who have dated for 30 years but never married or entered into a registered domestic partnership. So, if a person gives a share of real estate to his sibling, the property tax WILL go up based on the percentage of real estate transferred. No exceptions.

You may know that Proposition 13 said the property tax rate for all California real estate can only go up 2% per year, even when parents died and their children inherited their real estate. The state has been trying to get rid of Proposition 13 for a long time because it wants to be able to double our property tax whenever it so desires -- just like it did prior to the 1970's when property owners in California finally got fed up with being forced to sell their homes due to unaffordable property tax. That was the reason voters put Proposition 13 into place.

Unfortunately, California voters recently cut the largest hole in Proposition 13 without knowingly doing so. The result is that few children who inherit real estate from their parents will be able to keep their parents' property tax rate. There is only one very narrow exception and it only applies to a parent's primary residence. Thus, the property tax on most California rental property will automatically increase when the owner dies. If people think rents are high now, they won't want to see rents in another ten or so years! The lesson is that we should all research ballot measures before voting. Just relying on a one-minute TV ad or a quick blurb in a brochure will not give the whole picture of what is being voted on.

A: In California, transfers between siblings can qualify for property tax reassessment exclusion under Proposition 58, which means you may be able to avoid property tax increases when your brother transfers his 10% ownership to you via quit claim deed.

The key requirement is filing the proper forms with your county assessor's office, specifically Form BOE-58-AH (Claim for Reassessment Exclusion for Transfer Between Parent and Child) or BOE-58-H (Claim for Reassessment Exclusion for Transfer Between Siblings). You'll need to submit these forms within three years of the transfer date to claim the exclusion.

While this transfer should qualify for exclusion from reassessment, you'll still want to work with your county recorder's office to properly record the quit claim deed, and consider having title insurance to protect your interests. It's recommended to consult with real estate attorney who can review your specific situation and help ensure all paperwork is filed correctly to maintain your property tax base.