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.