The documentation required to support a “change in manner of holding title” exemption from the California Documentary Transfer Tax typically includes: 

 A specific statement on the deed is crucial: the most critical documentation is a clear and accurate statement of the applicable exemption, with a citation to the relevant Revenue & Taxation Code section directly on the face of the deed.

The standard wording is:

“This conveyance changes the manner in which title is held.  Grantor(s) and Grantee(s) remain the same and continue to hold the same proportionate interest (R&T Code §11911 or §11930)”.

• Documentary Transfer Tax Affidavit (DTTA): Many California counties require a separate, completed Documentary Transfer Tax Affidavit or a similar declaration under penalty of perjury to be filed with the deed.  This form provides details about the transaction and the specific exemption being claimed, helping the county assessor understand the nature of the transfer.
• Preliminary Change of Ownership Report (PCOR): A Preliminary Change of Ownership Report (Form BOE-502-A) must generally be filed with each conveyance with the County Recorder’s office.  While this form primarily concerns property tax reassessment exclusions, it includes sections to explain the nature of the transfer and confirm that no change in beneficial ownership has occurred, supporting the transfer tax exemption claim.
• Supporting documentation (if requested): In situations involving legal entities or complex transfers, copies of formation documents, such as a trust agreement, LLC Operating Agreement, or Partnership's's Agreement, may be required to demonstrate that the proportional ownership interests remain identical before and after the transfer. 

It is highly recommended to thoroughly understand and adhere to the specific requirements of the county recorder’s office where the property is located, as local requirements can vary slightly in terms of forms and procedures. 

1.  Interspousal Transfers

• Transfers between spouses or registered domestic partners, including:
• Transfers during marriage or domestic Partnership's's.
• Transfers in connection with divorce or dissolution.
• Authority: Rev. & Tax.  Code §63. [boe.ca.gov]

2.  Transfers to or from Revocable Trusts

• These rules, designed to ensure fairness in transfers where the transferor is the present beneficial owner or retains the right to revoke the trust, uphold the principle of equitable distribution of assets.  They provide a sense of security and confidence in the system—transfers where the transferor is the present beneficial owner or retains the right to revoke the trust.
• Authority: Rev. & Tax. Code §62(d). [boe.ca.gov]

3.  Parent-Child Transfers (Proposition 19)

• Exclusion applies only to:
• Family home or farm (must become the child’s principal residence).
• Subject to value limits and timely filing.
• Authority: Cal.  Const. Art.  XIII A §2.1; Rev. & Tax. Code §63.1. [boe.ca.gov]

4.  Grandparent-Grandchild Transfers

• Similar to parent-child transfers, but only if all the grandchild’s parents are deceased.
• Authority: Rev. & Tax.  Code §63.1. [boe.ca.gov]

5.  Transfers Between Cotenants Upon Death

• When a co-owner of a property, known as a cotenant, dies and the surviving co-owner inherits the property and continues to occupy it as their principal residence, the reassessment is excluded.
• Authority: Rev. & Tax.  Code §62.3. [boe.ca.gov]

6.  Transfers Resulting in No Change in Proportional Ownership Interests

• Transfers of real property among legal entities or individuals that do not result in a change in proportional ownership interests.
• Authority: Rev. & Tax. Code §62(a)(2). [boe.ca.gov]

When a commercial property is transferred from a trust to an individual and back to the trust, the California transfer tax exemption applies because there is no change in beneficial ownership.  This is exempt under Revenue and Taxation Code §11930.  An additional exemption may apply for transfers that solely change the method of holding title, provided the proportional ownership interests remain the same. 

 7.  Key California exemptions

No change in beneficial ownership: The transfer is exempt under Revenue and Taxation Code §11930 if there is no change in the beneficial ownership of the property.  In this scenario, the individual remains the trustee and beneficiary, and therefore, the beneficial ownership is not altered.  This clear and straightforward rule provides a sense of ease and comfort with the information.

• Change in manner of holding title: Another applicable exclusion is for transfers that solely result in a change in the method of holding title.  Since the individual retains the same ownership percentage throughout the process, this exemption would also apply.
• Claiming the exemption: To properly claim the exemption, the deed must clearly state the applicable exemption and cite the appropriate section of the Revenue & Taxation Code.  Some counties may also require a Documentary Transfer Tax Affidavit or declaration under penalty of perjury. 

8.  Transfers to Correct Title

• Transfers to correct or perfect the title without changing beneficial ownership.
• Authority: Rev. & Tax. Code §62(c). [boe.ca.gov]

9.  Transfers Upon Death to a Spouse or Registered Domestic Partner

• Includes transfers via will, intestate succession, or trust.
• Authority: Rev. & Tax.  Code §63. [boe.ca.gov]

10.  Transfers Between Co-Owners to Create or Terminate Joint Tenancy

• If the transferor remains a joint tenant.
• Authority: Rev. & Tax. Code §65(b). [boe.ca.gov]

11.  Transfers of Leasehold Interests

• Certain long-term leases and subleases are under specific conditions.
• Authority: Rev. & Tax   Code §§61, 62. [boe.ca.gov]

12.  Transfers to Government or Public Entities

• When property is acquired by eminent domain or inverse condemnation.
• Authority: Rev. & Tax.  Code §68. [boe.ca.gov]

13.  Base Year Value Transfers

• For homeowners age 55+, severely disabled persons, or victims of natural disasters (Prop 60/90/110).
• Authority: Rev. & Tax   Code §§69.5, 69.6. [boe.ca.gov]