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Texas Homesteads

11/24/2009

by Veronica Chavez Law

A homestead in Texas is a place of residence (or a place of both residence and business) in which the security of a family or single adult person who is not part of a family can be maintained against the rights of creditors. Homestead rights in Texas are created by the Texas Constitution and certain statutory provisions set forth in the Texas Property Code. The protection given a homestead is one of the most important and powerful rights that a resident of Texas can claim.

A homestead is protected from forced sale for the payment of all debts except (1) the purchase money for the property or a part of the purchase money, (2) taxes due on the property, and (3) work and material used in the construction of improvements on the property. And the proceeds of a sale of the homestead are protected from seizure for a creditor’s claim for six months after the date of sale of the homestead.

Homestead rights are established by a combination of the landowner’s intent to claim the property as a homestead and the landowner’s actions with respect to the property that indicate homestead usage. Formal designation of a homestead is not required for purposes of claiming a homestead; however, Section 41.005 of the Texas Property Code establishes a procedure for voluntarily designating a homestead.

A rural homestead is one that is not in a city or town and may not consist of more than 200 acres for a family and not more than 100 acres for a single adult. An urban homestead is one that is in a city, town or village and consists of a lot or lots amounting to not more than ten acres of land for both families and single adults.

There are many more attributes and important legal affects that arise from a homestead that are covered in this short article. If you have questions about your homestead right, you should consult a knowledgeable real estate attorney.

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