How does homestead work in florida

If you are considering moving to Florida, or you are new to Florida, you will hear about something that you are likely unfamiliar with: Florida Homestead. This means that, should you have a recorded judgment against you, that judgment cannot attach to or become a lien on your homestead.

Simply put, a creditor cannot take your house away if you owe money on a judgment. This homestead protection against a judgment is one of the strongest asset protection tools known in the United States. The Florida Homestead Law refers not only to a single-family home as being protected from judgment creditors but also condominiums, mobile homes, and manufactured homes.

The protection of the Florida Homestead Law has a limitation regarding the lot size of your principal place of residence in Florida. Condominiums, manufactured homes, and mobile homes are also afforded homestead protection from judgment creditors in Florida. The protection of the Florida homestead is one of the strongest asset protection tools in the country.

Some judgment debtors living in other states will move to Florida and purchase a Florida homestead to protect their hard-earned money from collection by a creditor. The law protects not only real estate, but also recreational vehicles, mobile homes, co-ops, and even long-term leases. Schedule a phone or Zoom consultation to review your specific situation and get direct answers to your questions.

It is harder to convince voters to repeal an important constitutional benefit than to change a state statute through legislation. Additionally, future laws enacted by the Florida legislature cannot override or diminish protections provided by the Florida Constitution. Homestead protection is afforded to residences within a municipality on lots up to one-half acre and residences outside a municipality up to contiguous acres.

All contiguous property up to acres is included in homestead even if the contiguous property has separate legal descriptions and tax numbers. No matter whether the homestead is in the city or the county, there is no restriction on the square footage of the physical residence or the value of the property.

The debtor is not permitted to survey the lot, allocate the protected portion to the physical dwelling, and allocate the unprotected portion to the less valuable backyard. There shall be exempt from forced sale under process of any court, and no judgment, decree or execution shall be a lien thereon, except for the payment of taxes and assessments thereon, obligations contracted for the purchase, improvement or repair thereof, or obligations contracted for house, field or other labor performed on the realty, the following property owned by a natural person:.

Any person can be eligible for the Florida homestead exemption. Only debtors who are natural persons qualify for Florida homestead protection, so properties titled in the name of corporations, limited liability companies, irrevocable trusts, or partnerships do not qualify as homestead property.

According to several court rulings, property owned by a living trust can be homestead property, and a Florida statute provides that a land trust may own homestead property.

A Florida homestead protects your house from forced levy and sale by a civil judgment creditor. In other words, if you owe money on a judgment, the creditor cannot take away your home. There are exceptions to what a homestead protects you from in Florida. The constitution states that homestead is not protected from the following debts: -Liens on the homestead voluntarily given to secure a loan, such as a mortgage to purchase your home or a home equity loan.

For asset protection purposes, nothing needs to be done to claim the exemption. The exemption applies the moment you occupy the home with the intent for the home to be your permanent residence. However, people seeking the homestead tax exemption may have certain filing requirements to claim the tax exemption. Homestead protection continues after the owner dies.

However, Florida Statute The statute provides that mobile homeowners and occupants whose home is on leased land may claim the mobile home as their homestead and exempt it from levy and forced sale. A Florida homestead property is generally exempt from civil judgment liens. However, you can always voluntarily place a lien on your homestead property. The most common example is your home mortgage.

When you buy your homestead with a mortgage, you voluntarily give the lender a lien on your homestead property. For asset protection purposes, a Florida homestead is the place that you intend to be your primary, permanent residence.

On January 1 of the year following a change in ownership, the property will usually be reassessed at true fair market value. The new owner can apply for a new homestead exemption at that time, and the cap will begin anew for the new owner. There are three requirements to qualify for homestead protection under Florida law: a residency requirement, an acreage limitation, and a natural person limitation. These requirements are discussed below. Only Florida residents can claim Florida homestead exemption.

To become a Florida resident, a person must reside in Florida with the intent of residing in Florida permanently. Although it may be easy to determine whether a person resides in Florida at a given time, it is not always easy to determine whether the person intends to reside in Florida permanently. To help avoid questions about subjective intent, a person may file an affidavit with the county clerk stating that he or she intends to reside in Florida permanently.

There is a similar affidavit procedure for people who own homes in multiple states. While filing these affidavits with the clerk can help establish Florida homestead, they are not conclusive. Florida homestead protection only protects a homestead if it meets certain acreage requirements. The amount of acreage that will be protected by Florida homestead exemption depends on whether the homestead is located within a municipality. If the residence is located within a municipality, only one-half an acre can be protected by the Florida homestead exemption; if the residence is located outside a municipality, up to acres can be protected.

If the property is located outside a municipality, buildings and other structures on that property will also be considered part of the homestead, even if used for business purposes. Ancillary buildings or other structures used for business purposes would not be protected if the home is located within a municipality. If the property is owned by a corporation or a limited liability company, for example, it will not qualify for Florida homestead protection. Other forms of ownership—such as beneficial or equitable interests in property, undivided interests in property, or the present right to possession of the property—have been found to qualify for homestead protection.

The same rationale has been used to extend homestead protection to an individual who occupies a home that is held by a trustee. Such non-exempt liens will also result in a title issue that may prevent the sale or refinancing of your home. Additionally, certain types of co-ownership such as tenancy in common and joint tenancy with rights of survivorship of a homestead may jeopardize the homestead exemption when one of the joint owners does not reside on the property.

In summary, Florida homestead laws are significant and warrant consideration by homeowners and prospective homeowners. Should you have questions or wish to discuss the homestead issues you are facing, do not hesitate to contact Scot B. Call for a Consultation