This article is for assessors evaluating whether a transfer involving a Fabrica Trust is a change in ownership for reassessment purposes.
Transfers into or out of an owner’s own trust
When an owner places their own property into a trust on the platform, or removes it, the transaction is structured as a change in the form of ownership, not a change in beneficial ownership. The same person who held the property before the transfer is the beneficiary of the trust after it. The beneficiary appoints the trustee and, by default, serves as their own trustee. Fabrica is not a party to the trust and never holds title.
The standard documentation package for these transfers includes:
A certification of trust naming the beneficiary.
In California, a Preliminary Change of Ownership Report (PCOR).
The full trust agreement, available on request.
When beneficial ownership does change
When the Property Token is sold or otherwise transferred to a new owner, beneficial ownership of the trust changes. In that case, standard change-in-ownership notice applies and is reported to the county under the applicable state’s rules, through the normal channels your office already uses.
In 2022, California State Board of Equalization tax counsel confirmed that “a transfer of the Fabrica Token is a transfer of the underlying real property itself”. That confirmation is specific to California. Each jurisdiction applies its own rules, and nothing in this article predicts how any particular state or county will treat a given transfer.
Questions about a specific parcel
If your office is reviewing a specific parcel, email hello@fabrica.land with the parcel number and your question. You will get a direct answer, including the documentation described above where it helps.
Learn more: the Fabrica Trust and property obligations at docs.fabrica.land.