What is a sale or transfer of California real property and when is withholding required?
A sale or transfer of California real property includes both: • A sale, exchange, or any transfer from one party to another. • Any transaction where a party on title before the transaction is not on title after the transaction is completed. Withholding is required for the following transaction where a party on title before the transaction is not on title after the transaction is completed: • Gift (debt relief): Withholding is required if the person going off title is being relieved of liability and/or receiving proceeds and the sum of the debt relief and proceeds exceeds $100,000. The amount subject to withholding is the amount of debt relief plus any proceeds received by the person going off title. • Refinance, if an owner goes off title in the refinance (debt relief). The amount subject to withholding is the amount of debt relief plus any proceeds received if: • The person going off title is relieved of liability and/or • The person going off title receives proceeds and • The sum of
