Homestead Exception & Protection

Question 1

what is homestead

Answer 1

protection of property that is someone’s primary residence
- can only have 1

Question 2

Homestead benefits

Answer 2

• tax exemption
• protection from forced sale

Question 3

Size Limitations of Homestead

Answer 3

• Inside Municipality: up to 1/2 acre
• Outside Municipality: 160 acres

Question 4

Exemption from Taxation

Answer 4

50k reduction of home value
- so taxed at reduced value
- limited on how much your taxes increase each year

Question 5

Protection from Forced Sale

Answer 5

cannot force you to sell your house to satisfy claim

Question 6

Exceptions to Protection from Forced Sale

Answer 6

• mortgage (bank foreclosure)
• construction lien
• taxes
• assessments by HOA

Question 7

Sale of Homestead

Answer 7

• cash ($) received is protected if you intend to buy a new homestead with it, within a reasonable time (courts seem to suggest about 6 months)
• if $ not used for homestead then no longer protected