Homestead

Question 1

Homestead exemption

Answer 1

• TX provides a homestead exemption for single adults and heads of households
• is designed to protect a family’s home from a forced sale to satisfy creditors after death of the head of household

Question 2

Rural Homestead

Answer 2

• consists of more than:
  1) 200 acres for a family or
  2) 100 acres for a single adult

Question 3

to have a homestead

Answer 3

1) present enforceable right and

2) right of possession

Question 4

urban homestead

Answer 4

• consists of not more than 10 acres of one or more contiguous lots
  1) located within the city limits AND
  2) served by municipal police, fire service and at least THREE of either electric, natural gas, sewer, storm sewer, or water services

Question 5

Notes:

Answer 5

• cannot be a mixed homestead of part urban and part rural

- 2 types of homesteads cannot exist simulataneously

Question 6

personal prop as homestead

Answer 6

• must be on owner’s land and have some level of attachment to the land
  example: fixture attached to the land (barn or a related building)

Question 7

business homestead

Answer 7

• urban: if it is on the same lot as the homestead or a lot contiguous to the homestead and does not exceed 10 acres
• rural: a non-contiguous parcel can qualify as a rural homestead provided the owner can show the parcel is necessary to the use and enjoyment of her home

Question 8

spouses

Answer 8

• cannot convey, sell, or encumber without joinder of spouse

- must both agree and sign

Question 9

exceptions to the homestead exemption (home is NOT protected)

Answer 9

• purchase money
• taxes on the prop
• refinance of a lien
• construction improvements
• home equity loans
• reverse mortgage
• owelty of partition

Question 10

purchase money exemption

Answer 10

-TX constitution permits creditor to force a sale if the purchase money on the home is due

Question 11

taxes on property

Answer 11

-homestead prop is NOT protected from forced sale for payments of any taxes assess and levied on the prop

Question 12

refinance of a lien

Answer 12

-encumbrances may be properly fixed on homestead property for the refinance of a lien against the homestead

Question 13

construction improvements

Answer 13

-TX con permits the forced sale of the homestead for loans made in connection with improvements to the property, provided the work and material used were contracted for in writing and with the consent of both spouses

Question 14

home equity loans

Answer 14

-homestead prop is NOT protected from the forced sale for the payments of a home equity loan

Question 15

reverse mortgage

Answer 15

• NOT protected from the forced sale for the payments of a reverse mortgage.
• RM is a line of credit available to people over the age of 62 which enables them to access a portion of the equity in their home

Question 16

owelty of partition

Answer 16

• NOT protected from the forced sale to satisfy an owelty of partition.
• Owelty is the money paid following the partition (that is, division) of a co-tenancy when an equal partition isn’t possible

Question 17

transfers

Answer 17

spouses CANNOT transfer or encumber a homestead without the agreement of the other spouse

Question 18

termination

Answer 18

• a homestead ends in the following situations:
• if a claimant dies without a survivor to take the homestead or abandonment
• to prove abandonment, there must be clear and present intent not to use the property as a homestead (not just non-use)
• divorce does not destroy the homestead, provided one of the spouses is able to maintain the homestead