Legal Question in Real Estate Law in California

The purpose of a Declaration of Homestead is to protect the homeowner's equity in the property from attachment by creditors. What possible reason would you have, as a renter, want to record such a document against a home you do not own? It does not, as some mis-interpret the word "Homestead" to mean, somehow create ownership rights in the property on your part. If you are renting the property, your only interest in the property is as a tenant. You can, under certain circumstances, record a memorandum of a lease agreement, but again, it in no way elevates your interest in the property as a tenant to something akin to ownership.

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It depends on the nature of your tenancy.

A "declared homestead" means the dwelling described in a homestead declaration. (Code of Civ. Proc., sect. 704.910 subd. (a).)

A "dwelling" means any interest in real property (whether present or future, vested or contingent, legal or equitable) that is a "dwelling" as defined in Section 704.710, but does not include a leasehold estate with an unexpired term of less than two years or the interest of the beneficiary of a trust. (Code of Civ. Proc., sect. 704.910 subd. (c).)

So if you are on a month to month tenancy or one year lease in an apartment, you are not entitled to a homestead declaration, and recording one could subject you to a slander of title lawsuit by your landlord. But if you have what is known as an "estate for years" (such as a 99 year lease, subject to becoming a fee interest) you would qualify.

As I read the law, a tenant with a lease exceeding one year is not precluded from recording a declaration of homestead. See Code of Civil Procedure section 704.910. However, it isn't clear that the average tenant gains anything by homesteading his leasehold. A tenant with a lease and an option to purchase might. Overall, I think homesteads are over-rated.