Homestead

Question 1

Homestead defined

Answer 1

Land exempt from forced sale. Protected from levy by creditors of the owner.

Question 2

Homestead limits

Answer 2

160 acres contiguous land outside a municipality
1/2 acre of contiguous land w/i a municipality
Up to $1000 of personal property

Homestead must be established before a judgment creditor’s levy (can’t create a homestead to get out of a debt)

Question 3

Exceptions to protections

Answer 3

1. Taxes/assessments against the property
2. Mortgages on the property
3. Construction or mechanics lien

Question 4

Abandonment

Answer 4

If property abandoned, you lose homestead protection.

• Creditor must show you abandoned
• If you lease land for over a year it counts as abandoned for homestead purposes (unless you’re in the military)

Question 5

Proceeds of sale

Answer 5

Protected if owner has good faith intent to reinvest in another homestead w/i a reasonable time.

Question 6

Restraints on devise

Answer 6

May not be conveyed by one spouse w/o the other’s consent
May be freely devised if there is no spouse or surviving minor children. (may be waived in antenuptial agreement as to spouse)