Tip of the Month - October 2008

How to Complete the Preliminary Change of Ownership Report

The parties in an escrow transaction are asked to complete several forms, many of which can be confusing for "first timers". If you are a buyer in an escrow, this brief guide will take some of the mystery out of completing the document called Preliminary Change of Ownership Report (PCOR). You can expect to find this form in the opening document package which you receive from your escrow officer.

Background

State law requires the buyer to file a Preliminary Change of Ownership Report when a document is recorded which causes a change in ownership. The information you supply on the form will help the county tax assessor determine whether or not the property is subject to reappraisal and, if so, the fair market value of the property. Your new address provided on the PCOR will be used to update the mailing address for future tax bills.

The PCOR typically accompanies the Grant Deed when it is recorded at close of escrow. If a fully completed original report is not provided, a fee of $20.00 will be charged, and the tax assessor will contact you for this information after closing. Penalties for not filing a report range from $100 to $2,500.

State law requires that the information on the PCOR be held confidential by the assessor's offices except in limited circumstances and when authorized by law.

Completing the Report

• Seller/Buyer: Enter the seller's (transferor's) and buyer's (transferee's) complete names.


• Assessor's Parcel Number (APN): This is a 10-digit number which identifies the property you are purchasing. It can be found on a recent tax bill. You may also find it entered on the first page of your purchase contract. The APN will also be in the title report which is provided to you during escrow. Your escrow officer or real estate agent can help you locate the correct number.


• Property Address: Enter the complete number, street name, city and zip code. It is helpful to add the full 9-digit zip code if you happen to know it.


• Mail Tax Information To: Enter the name and mailing address where all property tax bills or other official notices are to be sent. If the property address is the same as your mailing address, you may enter the word "same". If your mailing address changes at a future time, notify the assessor's office so you will continue to receive bills and notices in a timely manner. Provide a phone number where you can be reached during daytime business hours.


• Part I - Transfer Information: Your answers to these questions will help the assessor decide if your property might be excluded from reassessment.


• Parts II, III and IV: If these sections are not complete, the PCOR will not be accepted by the assessor. The information provided here helps the assessor determine if the purchase price is fair.


• Certification: Sign the report to certify that it is true and correct, and print your name.

These instructions are simple guidelines which apply to most sale transactions. Your escrow officer or real estate agent can assist you with unusual situations. You can also contact the assessor's office for the county in which your property is located. The assessor is a particularly good resource if you have questions about Part I of the form, including possible exclusions from property tax reassessment.

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