Proposition 58 states that real property transfers, from parent to child or child to parent may be excluded from reassessment.
Prop. 58 Eligibility Requirements:
1) The real property must be owned by the eligible transferer who is either the parent or child.
2) You must be a parent or child. A child may be a son, daughter, son-in-law, daughter-in-law, stepchild, or child adopted before the age of 18.
Spouses of eligible children are also eligible until divorce or, if terminated by death, until the remarriage of the surviving spouse, step-parent, or parent-in-law.
3) You must complete a Claim for Reassessment Exclusion for Transfer between Parent and Child form for a gift or purchases of real property between parent and child.

Proposition 193 expands this tax relief to include transfers from grandparent(s) to grandchild(ren).
Prop. 193 Eligibility Requirements:
1) The real property must be owned by the eligible transferer who is the grandparent.
2) You must be a grandchild whose parent(s) qualify as the deceased child(ren) of the grandparents as of the date of transfer, and you must be the descendent’s child.
3) You must complete a Claim for Reassessment Exclusion for Transfer from Grandparent to Grandchild form for a gift or purchase of real property from grandparent to grandchild.
Transfers from grandchildren to grandparents are not eligible for this tax relief.
In both cases (58 & 193), a claim must be filed within three years of the date of transfer to receive the full benefit of the exclusion.
Transfers by sale, gift, or inheritance qualify for the exclusion.
The principal place of residence must have been granted a Homeowners’ Exemption or Disabled Veterans’ Exemption before the transfer.
The person who files first will get the exclusion if there are more than one receivers.