The Basics of Florida’s Homestead Exemption Laws

Florida is unique in the nation as one of the few states that has an almost unlimited homestead exemption. In practical terms, this means that so long as your property meets the definition of a homestead, and you meet a few other requirements, a creditor cannot take your home.

One caveat to this are times when you specifically allow a creditor to take your home if you don’t pay a debt. A typical example of this is a mortgage where you are expressly agreeing to put your home up as security for a loan.

But absent your express written agreement, your homestead property is safe from creditors who are seeking to collect on debts, or judgments, that may be entered against you.

Liening Property

Bear in mind that homestead protection means that a creditor cannot just take your home via foreclosure. But your home can be liened—that is, you could not sell your home without paying off the judgment. That could affect whatever proceeds you would expect to get out of the sale of your property.

But you would not and could not just be kicked out of your home for owing money on a debt or judgment.

Claiming Homestead

The first requirement to get the protection of the exemption is obvious—the property must be homesteaded.

The easiest way to do this is to apply for a homestead with the county. The property must be your primary residence to be homesteaded, but you can homestead your property and still own other property. In fact, you can even spend time living somewhere else—so long as your intent (as evidenced by where you get bills, where kids go to school, where you vote, etc) indicates your intention to reside in Florida in the homestead.

The property must be smaller than ½ an acre, but can be as large as 160 acres if the property is in a rural area or an area that is not in a city.

Improvements are Protected

Not only is the value of the property protected from creditors, but even improvements that you may make on the property, or anything that causes the property to go up in value, is protected. This is why so many people make improvements on their property—it is a good, safe place to put your money, as the increasing equity and value of your home is safe from creditors.

Some Exceptions

Aside from mortgages, there are other limited circumstances, where even homestead property can be foreclosed on. Mechanics liens (for unpaid construction related work), homeowners associations, and some tax liens, can lead to foreclosure on your property.

Tax Benefits

Note that the homestead exemption is different from declaring homestead for tax purposes, which caps how much property tax you pay on property every year. However, although different, you will get the benefit of both the creditor protection, and the tax benefit, by having homestead property.

Call West Palm Beach real estate lawyers at The Law Offices of Larry E. Bray today for help with your real estate closing, and with questions about buying or selling your home.

Sources:

pa.martin.fl.us/homestead-exemption/homestead-exemptions-faqs#:~:text=Your%20home%20address%20on%20your,you%20must%20spend%20in%20Florida.

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