What Is a Massachusetts Homestead Declaration, and Should You File One?
Every Massachusetts homeowner gets some automatic homestead protection. Recording a declaration raises it substantially. What it protects, what it doesn't, and when to file.
A Massachusetts homestead protects some of the equity in your primary home from certain creditors. Every owner-occupant gets an automatic homestead of $125,000. By recording a Declaration of Homestead at the Registry of Deeds, the protection rises to $500,000 (with additional protections for owners 62 and older or disabled). Filing is inexpensive, and many closing attorneys prepare one for buyers at closing. Ask yours.
What does a homestead protect against?
Certain unsecured creditors, for example after a lawsuit judgment, from forcing the sale of your home to collect up to the protected amount.
What doesn't it protect against?
- Your mortgage lender
- Property taxes
- Debts incurred before you recorded the declaration
- Certain other obligations, such as some support orders and liens
When should you file?
Ideally at closing or shortly after you buy. If you didn't, you can record one anytime. It only protects against debts that arise after it's recorded.
Do you need to file again after refinancing?
Generally no, but if you change how the home is titled (for example, putting it into a trust), ask your attorney whether a new declaration is needed.
Questions people actually ask.
Is a homestead declaration the same as a tax exemption?
No. It protects equity from certain creditors. It doesn't lower your property taxes.
Do both spouses need to sign?
Both owners who occupy the home usually sign the declaration. Your attorney will prepare it correctly.
Does it apply to rental properties?
It applies to your principal residence. An owner-occupied two- or three-family can qualify for the part you live in.
This article is general information about Massachusetts real estate, not legal, tax, or financial advice. Every property and transaction is different. For advice on your situation, talk with me and, where appropriate, an attorney, lender, or tax professional.