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  • Ashley Sharum

Homestead Exemptions, and the Benefits Therein

The Texas Constitution and Property Code provide that the homestead of a family or single adult is protected from forced sale for purposes of paying debts and judgments, except in cases of purchase money liens (mortgages), taxes (both ad valorem and federal tax liens against both spouses), owelty of partition (divorce), home improvement loans, home equity loans, reverse mortgages, liens predating the establishment of homestead (e.g., HOA Assessment Liens), refinance loans, or the conversion or refinance of a lien on a mobile home that is attached to the homestead. Homestead protections are available only to individuals and it's rumored to be established during the time of war, when men would leave the home to fight and leave their livelihoods, family and debts behind.

To qualify, the homestead must be used either for residential homestead or as both residential homestead and business homestead. You must live in the property - no AirBnBs. Once property has been dedicated as homestead, it's done!

For ad valorem tax purposes and for protection from creditors, it's important to designate homestead in the county where your property is located. The homestead arises automatically when required legal conditions are met.

Reach out to me if you'd like a direct link to your Homestead Application. There is no need to hire a company to complete this process for you. It's a simple form to complete and proof of residence to submit to lock in these savings.

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