What is a Homestead? California Has Automatic Homestead Protection!

If you have ever bought a house in California, you might remember receiving weird letters in the mail asking you to complete a form for a Homestead Declaration.  For a $25 fee, the company will process your paperwork for declaring your home as a Homestead. It's really not necessary as it's automatic in California. Here's a bit more information on Homesteads. If it sounds vague, it's because it is indeed vague!

What it is: A Homestead gives protection against involuntary claims against an owner's home.

It's Automatic in California! In California, every homeowner has an automatic homestead exemption of at least $50,000 for his or her residence. This protection does not require the signing or filing of any papers or documents.

This is the blah, blah, blah part...

The amount of the exemption increases to $75,000 if at least one member of the family unit living in the house owns no interest in the house, as, for example, when a homeowner lives with his or her minor children. If a homeowner is 65 years of age or older, or is physically or mentally disabled, the amount of the exemption is $150,000. The $150,000 exemption also applies to persons 55 years of age and older if the person is (1) single and has a gross annual income of not more than $15,000, or (2) married and the individual and his/her spouse have a combined annual income of less than $20,000, and the sale is involuntary.

You can also declare a Homestead as well by filing a one-page document in the County Recorder where the property is located.

For more information on declaring a Homestead, check out the Department of Consumer Affairs website on Homesteads.

For more  information on the historical homestead act, check out the Homestead National Monument of America website.

Comments

[melenge]

Need to file a homstead for my home for your advertised price of $25 please let me know how to go about it

Regards,
Osa.

[melenge]

Need to file a homstead for my home for your advertised price of $25 please let me know how to go about it

Regards,
Osa.

[Bonnie Roloff]

I want to add my married daughter to my current Mortgage deed. She pays 1/2 of the mortgage but can't claim the interest unless she is also on Title. Can I add her as: Married, as her sole and separate property? Should we be joint tenants? Should I add her spouse?

[bertha aherne]

if you no longer own a property are you responsible for repairs
If you donated a property how can you get the form to file the tax credit for it

[Chris]

I am in process of building a house, it's almost complete. Can I record a homestead now (I live in a trailer and have at least 50% of the time - telecommute for work but retain an apartment).

Also, what is the equity allowed - it's my husband and I (both on title) and we make definitely more than 20K. I will be 55 in august.

[alisa lee]

Even if the homestead protection is automatic, why do we have the option to file? What benefits are there to the automatic homestead and the one you file??

[Lorraine]

What are the disabled veterans benefits for the homestead program and how to apply

[Lisa A.]

My husband and I jointly make more than the $20K annually are in our 40's and are wondering if we would benefit from filing additional paperwork to homestead our home/property. This is our primary residence and I am a healthcare provider. It has been brought to my attention that I should do this to protect our home in case.