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Do you know what a Homestead is? This is another Title Insurance Question

By Endre Barath, Jr.

Real Estate Agent with Berkshire Hathaway HomeServices California Properties 01238708

June 01, 2011 12:47 PM

Do you know what a Homestead is? This is another Title Insurance Question you might want to be familiar with and inquire about when you are purchasing a home.

As most of you know I have written a few blog posts about Title Insurance. I find it is very important to be familiar with Title issues; it can make a great deal of difference whether it will be an easier Escrow Period or a harder one. The more knowledgeable you are the easier it will be.

The Homestead Act is very complex in nature and if it is not properly prepared may be invalid. Therefore I suggest that you consult an attorney for your specific situation or at least a Title Officer before you take title on a property.

Generally most people want to know how the Homestead Exemption works. In simple terms it may protect your equity from creditors. In other words in f you own or are about to buy a condominium, a house, a duplex or a mobile home this could be beneficial to you. Every home owner who resides in his or her home is entitled to this protection until the house is sold or the homestead is abandoned.

There generally is a limit to the amount of equity that is protected. Hence, depending on your situation you could be protecting anywhere from $50,000 to $100,000 of your equity. So talk to your Title Officer or his or her representative before you close on your purchase.

For your convenience I have enclosed some of my previous post about Title questions and issues.

http://actvra.in/bK2

http://activerain.com/blogsview/2248000/the-importance-of-using-a-reputable-respected-trusted-title-escrow-company

http://activerain.com/blogsview/2315072/do-you-know-what-a-title-binder-is-

http://actvra.in/bK4

http://actvra.in/bK5

http://actvra.in/bK6

If you are a consumer who is considering buying or selling a home, investment real estate, vacation homes, or beach properties in Southern California, Los Angeles, Century City, Westwood, West Hollywood, Beverly Hills, Culver City, Marina Del Rey, Venice or Malibu. Feel Free to give me a call at 310.486.1002 (USA) or email me at homes@endrebarath.com or visit one of my websites at http://www.endrebarath.com Your Pet Friendly Realtor. I contribute a portion of my commission to Local Animal Rescue Organizations.

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Jean Hanley

Coldwell Banker Kivett Teeters - Hemet, CA

Specializing in Folks Who Want To Buy/Sell Homes

Great information Endre. As a former escrow officer, I know about the pitfalls of ignorance when it comes to title issues. And, there are some good ones.

Jun 01, 2011 12:50 PM

Elyse Berman, PA

LoKation Real Estate - Boca Raton, FL

Boca Raton FL (561) 716-7824

Endre, Florida is a homestead state but we file it after closing. I wasn't aware that California was a homestead state as well. Great information for buyers!

Jun 01, 2011 01:45 PM

Juli Vosmik

Dominion Fine Properties - Scottsdale, AZ

Scottsdale/Cave Creek, AZ real estate 480-710-0739

Endre, many states also have tax discounts for a "homestead". Chicago and Illinois has a HUGE discount for homestead - after you've lived there 2 years.

Jun 01, 2011 02:16 PM

Rene Fabre

ARFCO Media - Renton, WA

Practicing Philosophical Eclectic of the Arts

Wow... nice post and great to see someone in real estate is actually concerned about title issues (no joke because my experience is most are not). Yet, this is why I said a while back how important it is when purchasing to be in conversation with the title officer. It makes a difference, big time! Depending on where (what state) you live and own property. Rights of ownership that run with the land vary depending on a multitude of things, for example: Did we get the land from the French, the Russians, the Spanish, the English via the Revolutionary War, or was it part of the Louisianna Purchase and/or part of the opening of the West with Jefferson and send Lewis and Clarke to explore and survey. It all makes a big difference and some of these rights are still in place and others have been refuted by our own government. Let alone living/building on Indian Reservations where you may own the home and lease the land...

Jun 01, 2011 03:34 PM

Tim Peterson

Wisconsin Realtor Safety and Concealed Carry Classes - Madison, WI

Realtor Safety Training Classes

Hi Endre..Great info most agents I have dealt with here do not know about it and it is so important to be aware of all this to advise your clients. Florida is the amazing state. There you can homestead 100% and be protected against anything save mortgage and taxes......Ask O.J.

Jun 02, 2011 01:30 PM

Pat Haddad, ABR, CRS, ePRO, GRI

Keller Williams Indianapolis Metro NE - Carmel, IN

Carmel, Fishers, Westfield IN Real Estate Expert

Endre--You are so knowledgeable when most of us just 'get by' with the basic knowledge. Makes me want to ask if you were employed by a title company before getting into real estate. We do have homestead tax exemptions here in Indiana, but that is the only reason I ever speak the word 'homestead'.

Jun 03, 2011 02:05 PM

Endre Barath, Jr.

Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA

Realtor - Los Angeles Home Sales 310.486.1002

Jean- wow former Escrow Officer, your clients are lucky to have your knowledge

Elyse- it is interesting how many States have different versions of the Laws, simmilar but different

Juli- I did not know about Chicago & Illinois, did you live there before?

Rene- coming from a Title Guy thank you

Tim-I figure since I am a Trusted Advisor to my buyers & sellers I should know more than the average agent in my part of the world

Pat- thank you for the kind words, I was an Army Officer, then a Contract Security Manger and now a Realtor for the past 14+ years:)))

Jun 03, 2011 02:44 PM

Robert Vegas Bob Swetz

Las Vegas, NV

Great Post Endre and many people don't know what "Homestead" is but you have laid it out on the line, thanks for the read ...

VB ;o)

Jun 04, 2011 04:01 AM

Do you know what a Homestead is? This is another Title Insurance Question

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