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Changes to Homestead Act

By Anthony Giglio

Real Estate Agent with eXp Realty 40552805

March 08, 2011 01:24 AM

On March16, 2011 changes to the Homestead Act will take effect. You may ask, what is Declaration of Homestead and why is this important? A Declaration of Homestead is a legal document filed at the registry of deeds which protects the residence against subsequent attachment, suit, or bankruptcy to the extent of five hundred thousand dollars ($500,000) of equity per residence, per family. A bill containing several important amendments to the Homestead Act was signed into law at the end of last year and is scheduled to go into effect March 16, 2011. Homeowners should investigate with their financial or legal advisor whether or they will be impacted by these changes

A significant change to the Act now allows homeowners to sell their primary residence, yet maintain the same Homestead protection on the proceeds of the sale. This protection is available for one year from the time of the sale or when a new primary residence is purchased, whichever is sooner. This provision allows flexibility for a homeowner who, for example, needs to relocate for a new job or downsize from their current home or may allow a homeowner with debt-related issues to still purchase another home. Read more

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Jeff Jasinek

Clients First Realty - Peoria, AZ

Realtor-Clients First Realty, LLC

Interesting, with all of the interest people have in various property in local communities, this may affect a significant number of homeowners, landowners, and investors.

Mar 08, 2011 01:28 AM