Transfer Tax Exemptions Under Revenue & Taxation Code
- Following is a list of real estate transactions that are exempt from documentary transfer tax under sections 11911-11930 of the Revenue and Taxation (R&T) Code.
- When a transaction is exempt, the reason for the exemption must be noted on the document. the reason must reference the R&T Code section and include the appropriate wording as shown below.
- Additional verification may be required to demonstrate a specific exemption applies to the transaction.
R&T Code |
Reason for Exemption with Required Wording |
Applicable Situations or Conditions |
11911 | Gift | Bona fide gift. |
11911 | Value or consideration is less than $100. | The property being transferred has a fair market value of less than $100.00. |
11911 | Liened to full value. | The value of the liens outstanding equals or exceeds the value of the property. |
11911 | Agent to principal, funds of the grantee used to purchase the property. | Only applicable when two deeds are recorded concurrently. |
11921 | Instrument securing a debt for collateral purposes only. | Used on Assignments of Lease and/or Rents for collateral purposes only. Not valid on deeds. |
11922 | Governmental agency acquiring title. | Includes foreclosing beneficiary to FHLMC or FNMA. |
11923 | Conveyance under bankruptcy Federal Case No. _________. | Approved in court proceeding. |
11923 | Court ordered conveyance not pursuant to a sale Court Case No. ________. |
Approved in court proceeding. |
11923 | Reorganization/adjustments plan Federal Case No. _______. | Approved in court proceeding. |
11924 | Transfer by order of the Securities and Exchange Commission Case No. ________. | Approved in court proceeding. |
11925 | Grantors and grantees are comprised of the same parties and their proportional interest remains the same immediately following transfer. | Transfers between individual(s) and legal entity(ies) in which proportional interest remains the same. |
11926 | Trustees Deed upon sale of Deed in Lieu of Foreclosure. the grantee was / was not the foreclosing beneficiary. The amount of consideration paid by grantee is $______. The amount of debt with interest is $_______. | A special tax statement is required to determine if any equity value exists. the tax exemption is for the value of the lien and does not include any equity value. |
11927 | Dissolution of marriage. | Transfer between spouses caused by or in anticipation of a divorce. |
11928 | Grantor is a non-federal government agency. | Only applies when the purchaser immediately reconveys the realty to the exempt agency. The two deeds must be concurrent. |
11929 | Grantor is a non-federal government agency; grantee is a non-profit corporation. | Does not apply to individuals or private entity(s) granting to a non-profit corporation. |
11930 | Transfer into or out of a trust. | Interests transferred outright to, or in trust for the benefit of any person or entity. |
11930 | Inter vivos gift or reason of death. | A gift made while someone is alive or the death of any person where their interest is transferred outright. |