Proposition 13, the voter initiative passed in 1978, allows property owners protection from skyrocketing property taxes.
If you are a parent selling or transferring title of your home to your child or a child doing the same to your parents, then your property can be excluded from reassessment under proposition 13.
This law applies not only to parents and children but also to parents and son-in-laws and daughter-in-laws so long as they’re not divorced.
However, in order to take advantage of these exemptions you must apply for them; they do not happen automatically.
Talk to a professional tax consultant if you feel you can take advantage of this exemption to save some money.
Thanks to Jon Zagaris for pointing this out.