What Is a Change of Ownership Notice?
When you buy a home in Florida, the county property appraiser needs to know that the property has changed hands. A Change of Ownership Notice is the mechanism that formally alerts the county government. This filing triggers a potential reassessment of the property's tax value and ensures the correct owner is listed on the tax rolls.
In Florida, the deed itself, once recorded in the Official Records of the county, serves as the primary notice of ownership change. The Clerk of Court transmits the recorded deed information to the Property Appraiser's office, which then updates its records.
Why It Matters for Property Taxes
Florida's "Save Our Homes" Amendment (Article VII, Section 4 of the Florida Constitution) caps the annual increase in assessed value of a homestead property at 3% or the Consumer Price Index, whichever is lower. This cap can result in a massive gap between a home's fair market value and its assessed (taxable) value over time.
When ownership changes, the cap is removed, and the property appraiser reassesses the property at its full market value. A home that was taxed on an assessed value of $200,000 (due to decades of the 3% cap) might jump to a market-value assessment of $600,000 the year after the sale, tripling the new owner's property tax bill.
Exemption Reset
The change of ownership also resets any existing Homestead Exemption. The previous owner's $50,000 homestead exemption is automatically removed, and the new buyer must file their own, separate homestead application with the county by March 1st of the following year. Failure to do so means the new owner pays a full year of property taxes without the critical $50,000 exemption.
Related Terms
- Homestead Exemption — The critical tax break that resets upon change of ownership
- Deed — The document recorded to officially trigger the ownership change
- Fair Market Value — The new assessment benchmark after the Save Our Homes cap is removed
Barnes Walker Real Estate Transactions
Barnes Walker's real estate attorneys counsel Florida homebuyers on the critical tax implications of ownership changes, ensuring new homestead exemption applications are filed promptly and that our clients are fully prepared for the post-sale property tax reassessment. Request a legal inquiry for assistance.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC