Homestead

Question 1

What section of the Florida constitution covers Homestead Property?

Answer 1

Article X, Section 4

Question 2

What does the homestead protection defend against?

Answer 2

It protects you from being forced to sell your domicile.

There shall be exempt from forced sale under process of any court, and no judgment decree or execution shall be a lien thereon.

Question 3

What are liens on the property that are exemptions to the homestead protection?

Answer 3

1) Unpaid taxes and assessments
2) Mortgages on the property for purchase or improvement of the property
3) Construction or Mechanic’s Lien

Question 4

What is required in order to place a lien on homestead property?

Answer 4

Need a waiver of both spouses to the homestead rights in order to get a mortgage.

Question 5

True or False: The homestead property must be owned by a natural person.

Answer 5

True

Question 6

True or False: A corporation or business entity can claim the homestead exemption.

Answer 6

False - only natural persons

Question 7

What properties qualify for the homestead exemption?

Answer 7

1) Property located outside a municipality of up to 160 acres of contiguous land and improvements
2) Property located within a municipality to the extent of 1/2 acre of contiguous land.

Question 8

What happens to an overage of land that is owned by the parties that have homestead protection on the remainder of the property?

Answer 8

The party owned it but it does not receive the homestead protection

Question 9

What happens if a homestead property previously outside a municipality is include in a municipality?

Answer 9

The protection shall not be reduced without the owner’s consent by reason of subsequent inclusion into a municipality.

Question 10

Can more than 1 property be the homestead?

Answer 10

No only 1 property - the primary residence.

Question 11

Who can the homestead property pass to?

Answer 11

Spouse or other designated heir

Question 12

When does the homestead protection have to be declared in order to receive protection against creditors?

Answer 12

Before the creditor’s levy attaches.

Question 13

What is the specific tax exemption provided for homestead property?

Answer 13

The property value will be decreased by $50k as it relates to Ad Valorem Taxes

Question 14

What is an additional benefit given to homeowners of homestead property as it relates to Ad Valorem Taxation?

Answer 14

There is a 3% annual cap on increases in Ad Valorem Taxation.

Question 15

Can a party keep the homestead protection if they abandon the property?

Answer 15

No - the protection is lost.

The creditor has the burden of proof of establishing this.

Can be shown that the homestead has been leased for over a year.

Question 16

Can a party lose the homestead exemption if they have leased the property over a year due to being deployed in the military?

Answer 16

No

Question 17

Are proceeds from the sale of a homestead property protected?

Answer 17

Yes Proceeds from sale retain homestead status if the owner has a good faith intent to reinvest in another homestead without a reasonable period of time.

Question 18

How does property held as JTBE pass if it has the homestead protection?

Answer 18

Goes to the spouse

Question 19

Can a homestead be devised if the owner is survived by a spouse or a minor child?

Answer 19

No

Question 20

Can the homestead be devised to a spouse by will if the Owner is not survived by minor children?

Answer 20

Yes

Question 21

The homestead can be devised to ____ if the owner is not survived by a spouse or minor children who survive.

Answer 21

Any person

Question 22

What occurs if a homestead property is devised improperly?

Answer 22

It descends in the same manner as intestate property.

Question 23

What occurs if a homestead is improperly devised and the owner is survived by a spouse and children?

Answer 23

The spouse gets a life estate and the children get the vested remainder.

Question 24

What occurs if a deceased spouse tries to exclude the other spouse from the homestead?

Answer 24

The spouse may elect to take 1/2 interest in the homestead in lieu of a life estate.

Property will be held as TIC with remaining 1/2 interest among lineal descendants surviving at the time of the death.

Once there is a TIC, the parties can agree to sell the property.

Question 25

True or False: Once the homestead is covered to a TIC the homestead protection is gone.

Answer 25

True - susceptible to creditor claims

Question 26

Are there any personal property protections under the homestead rule?

Answer 26

Yes up to $1000 of personal property is protected.

A surviving spouse or blind or disabled person can claim an additional $500.

Question 27

Are there any probate protections under the homestead rule?

Answer 27

Yes family can claim a family allowance of up to $20k of personal property.

Question 28

Can a property subject to homestead be conveyed without the other spouse?

Answer 28

No both spouses must sign - does not matter whose name is on the deed.

If both signatures not present, conveyance is void.

Question 29

If a property is a homestead and deeded to BFP but only one spouse releases homestead protection, is the conveyance valid?

Answer 29

No - conveyance is void. Both signatures are required.

Question 30

True or False: Equitable liens may be placed on the homestead for other debts if fraud is involved in inducing the loan.

Answer 30

True

Question 31

Can homestead right be waived by antenuptial agreement?

Answer 31

Yes

Question 32

True or False: Cannot freely devise the property if survivors include spouse or minor children.

Answer 32

True

Question 33

What is the millage rate for ad valorem taxation?

Answer 33

$1 per $1000 x number of mills authorized - exemptions

Question 34

What is the constitutional cap of mills?

Answer 34

30 total

10 - County
10 - Municipality
10 - School District

Question 35

When can the mill cap be waived?

Answer 35

1) For taxes levied for the payment of bonds

2) up to a period of 2 years if authorized by referendum.

Question 36

What is the standard for a just valuation?

Answer 36

Highest and best use of the property.

Question 37

When is new homestead value assessed?

Answer 37

Jan 1 of year following the establishment of a new homestead.

Question 38

Can stock ownership in a cooperative be homestead?

Answer 38

Yes

Question 39

Is there an additional veteran homestead exemption?

Answer 39

Yes

1) Honorably discharged
2) Over 65
3) Have a permanent combat related disability

Entitled to discount of ad valorem equal to the percentage of their disability.

Question 40

True or False: A county or municipality can grant a person over 65 whose income does not exceed 20k an additional homestead election?

Answer 40

Yes

Must not exceed 50k
and/or
Exemption equal to the assessed value of the property if the just value is less than $250k and the owner has had the property for 25 years.

Question 41

Can the legislature grant additional homestead protection to surviving spouse of veteran or first responder?

Answer 41

Yes - equal to the total amount or portion of ad valorem tax otherwise owed on the homestead property

Question 42

Can a homestead exemption be providing for living quarters of parents/grand parents?

Answer 42

Yes - county can provide a reduction in the assessed value of the property if the parties living in quarters are over 62

Reduction cannot exceed the lesser of
Increase in assessed value from modification
or
20% of the total assessed value as improved.