The Massachusetts Homestead Act
Definition: In Massachusetts, an estate of Homestead is an interest in real property designed to protect the possession and enjoyment of the owner or owner's surviving spouse and dependent children against the claims of creditors by protecting the property from execution and forced sale, so long as such person occupies or intends to occupy such property as his or her principal place of residence. M.G.L. c.188, ss. 1-10.
The Massachusetts Homestead Act is a little-known law dating back to colonial times which protects the homeowner from having to sell his property in order to satisfy debts or judgements incurred after filing a Declaration of Homestead at the appropriate Registry of Deeds. This protection does not extend to IRS, DOR, real estate tax liens, or child support judgements.
There are two types of Homesteads:
1. The Estate of Homestead (M.G.L. c. 188 sec. 1) may be declared by an owner of a home for the benefit of himself and his family. This Homestead has a value of $500,000.
Declaration of Homestead form for persons under the age of 62 (Adobe Acrobat PDF File)
2. The Elderly or Disabled Person Homestead (M.G.L. c. 188 sec. 1A) is for elderly persons (age 62 or older) and disabled persons who meet the requirement of the statute. This Homestead has a value of $500,000 per person and may be declared by both spouses.
Declaration of Homestead form for Elderly Persons (Adobe Acrobat PDF File)
Declaration of Homestead form for Disabled Persons (Adobe Acrobat PDF File)
It costs $35 to record a Declaration of Homestead at the Registry of Deeds. Personally, I think that a one-time investment of $35 to protect your home against the claims of judgements and creditors is a really good deal, which is why I recommend that all of my customers and clients record a Declaration of Homestead when they purchase a house which is going to be used as their primary residence.
Disclaimer: I am not an attorney and I am not attempting to offer legal advice. I am providing this information for informational purposes only.
Information provided courtesy of:
Randal L. Struckus
Broker Associate & REO Asset Manager
Keller Williams Realty
276 Turnpike Road, Suite 221
Westborough, MA 01581
(508) 735-9923
FAX (508) 389-9922
http://www.MassPropertiesForSale.com
Copyright (C) Randal L. Struckus, 2007. All rights reserved.