Understanding Property Taxes: What California Homebuyers Should Know About PCOR and the Homeowners’ Exemption

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When you buy a home in California, property taxes are part of the package. At Diamond Valley Escrow, we’re here to help you understand two key things you’ll likely come across during escrow: the Preliminary Change of Ownership Report (PCOR) and the Homeowners’ Property Tax Exemption.

What is the PCOR?

The PCOR is a form that must be filed with your deed when the property changes hands. It gives the County Assessor the info they need to determine your home’s new assessed value—which is what your property taxes will be based on.

⚠️ Heads up: If you don’t file the PCOR when your deed is recorded, there’s an extra $20 fee. Nobody wants that.

Don’t Forget About Supplemental Assessments

Your property may also be hit with a supplemental assessment, which is a separate property tax bill that’s not part of your closing costs or loan escrow account. These bills come later, and yes—they’re your responsibility.

The California Homeowners’ Exemption

This little-known perk can reduce your assessed home value by up to $7,000, saving you a bit on property taxes if you live in the home full-time.

To qualify, you must:

  • Own the home (or be in contract to buy)
  • Live in it as your primary residence on January 1st
  • File a claim with the county assessor

⏰ Deadlines matter!

  • File by Feb 15 to get the full exemption.
  • File between Feb 16–Dec 10 and get 80%.
  • For supplemental assessments, file by the 30th day after your notice for the full benefit—or before the bill’s due date for 80%.

You’ll need to include your Social Security Number on the form, which is used to verify your identity.

Your Diamond Valley Escrow Officer can walk you through these forms and help you stay ahead of deadlines so you don’t miss out on savings.