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SYNOPSIS OF TEXAS HOMESTEAD LAW
The new resident homeowners of the State of Texas should learn there is a group of laws vaguely referred to as the "Homestead Law" with "homestead" generally meaning the place of primary residence. These laws (as set out in Section 41 of the New Texas Property Code) operate to protect both an urban homestead or rural homestead from attachment and/or forced sale by creditors unless as a result of foreclosure under:
Tax Liens
Purchase Money Liens, or
Home Improvement Liens
Any other liens are generally unenforceable as to the homestead. This also means that a homeowner with equity in his home cannot borrow against the equity to use the money for other purposes other than home improvement. Therefore, the purchaser of real estate in Texas should carefully consider how much equity he wishes to initially invest since that equity will remain there until the sale of the homestead.
Did you know that Texas is a Homestead State?
What exactly is a homestead?
DEFINITION: (House, Condominium, Townhouse, Permanently installed Mobile Home)
URBAN: The Homestead of a family or a single, adult person, not otherwise entitled to a homestead shall consist of not more than ONE ACRE of land which may be in one or more lots, together with any improvements thereon.
RURAL: FOR A FAMILY - not more that 200 acres which may be in one or more parcels, -with the improvements thereon.
FOR A SINGLE ADULT PERSON - not otherwise entitled to a homestead, not more than 100 acres, which may be in one or more parcels, with the improvements thereon.
IF A HOMESTEAD IS CONSIDERED TO BE RURAL - at the time of designation, the property is not served by municipal utilities and fire and police protection
Why was the Homestead law passed?
PURPOSE: The Texas Homestead Law was created for the primary purpose of securing for a family or a single adult person, not otherwise entitled to a homestead, a place for home, shelter and the earning of a livelihood from the claims of all creditors EXCEPT THE HOLDERS OF LIENS FOR PURCHASE MONEY, TAXES AND HOME IMPROVEMENT LOANS.
How do you declare a Homestead?
Upon the purchase of a new home, you must call the APPRAISAL DISTRICT of the County in which you reside and request that they mail you the necessary forms for 'Declaring Your Homestead'.
You will need to use your back button to come back to www.4clearlakehomes.com. Here is a place to find more information:
Harris County Appraisal District
Galveston County Appraisal District
State of Texas
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