Legal Question in Real Estate Law in Massachusetts

Re: Homestead

Homestead is an interest in real property designed to protect the possession and enjoyment of the owner or owner�s surviving spouse and dependent children against the claims of creditors by protecting the property from execution and forced sale, so long as such person occupies or intends to occupy such property as his or her principal place of residence.

Upon filing a Declaration of Homestead the real property that serves as an individual�s principal residence is protected against attachment, levy on execution and sale for payment of debts for legacies, to satisfy non-exempted debts, to the extent of Five Hundred Thousand Dollars ($500,000.00). Homestead applies to the equity above any exempted liens or encumbrances.

The following are exempt from Homestead protection: federal, state and local taxes, assessments, claims and liens; first and second mortgages held by financial institutions and others; any and all debts, encumbrances or contracts existing prior to the filing of the declaration of Homestead; an execution issued from the probate court to enforce its judgment that a spouse pay for the support of a spouse or minor children; where buildings on land not owned by the owner of a Homestead estate are attached, levied upon or sold for the ground rent of the lot whereon they stand.

The cost for recording a Declaration of Homestead is currently $35.00.

Kindly contact my office if you need further assistance.

Re: Homestead

Massachusetts's provides a homeowner a $500,000 exemption from creditor claims on a principal residence. The homestead form may be downloaded in PDF fillable form from the Register of Deed's web site for the county in which the home is located. It is signed before a notary and filed/recorded with the clerk of the Registry. Filling fees are typically $35.

The protection is immediate.

This Office handles most real estate matters.

Re: Homestead

The others have already provided a good working explanation of the Homestead Declaration and what it does.

It should be noted that the Homestead Declaration will not protect your daughter from previous debts, i.e. debts incurred prior to the recording of a Homestead. It will only protect the home from levy or sale as against future-incurred debts.

My office charges a reasonable flat fee to represent homebuyers, which includes the preparation and filing of a Homestead Declaration on the home.

Please do not hesitate to contact my office.

Re: Homestead

It is not like insurance. Homestead protects you against non-mortgage debts. It doesn't make the judgment go away, but it does protect the homeowner from having to sell their house to pay the judgment. All mortgages contain a provison that waives homestead protection, for obvious reasons. Our office drafts these at no cost when we represent a Buyer. It is a $35 recording fee at the Registry of Deeds. Feel free to contact me to discuss further at no charge.

Re: Homestead

Dear Mrs. Hoffman:

If your daughter is buying her first home with your gracious financial assistance, you are correct that she needs an attorney to represent her (not the banks attorney who represents the bank) BEFORE she signs a purchase and sale agreement or even an offer to purchase.

The Declaration of Homestead that can be filed for a $35 filing fee at the registry of deeds will protect the first $500,000 of equity from debts she incurs AFTER the mortgage and is something her attorney will draft and file for her as part of the purchase.

Good Luck! She is lucky to have such a good Mother helping her.