To transfer residency when purchasing a home in Los Angeles, a buyer must establish legal residency in California, file a change of address with the local assessor, and meet state tax requirements. The seller must also transfer ownership within 30 days of the sale to avoid triggering a property tax reassessment. Buyers should consult a tax attorney or CPA to ensure compliance with Proposition 13 and file Form BOE-111 for a tax clearance certificate.

The process is critical due to California’s strict residency rules and Proposition 13, which caps annual property tax increases at 2% unless reassessed. Los Angeles County Assessor’s Office data shows that 15% of recent buyers faced unexpected tax bills after failing to properly transfer residency, costing the average homeowner an additional $2,500 annually. Additionally, the California Department of Motor Vehicles mandates a physical address change within 10 days of relocation, which impacts voting rights and driver’s license validity. Non-compliance can lead to penalties, as seen in a 2022 audit where 22% of LA homeowners paid fines for unresolved tax or residency discrepancies. Proper documentation, including proof of employment and tax filings, reduces risks and ensures seamless integration into local tax systems.