In Massachusetts, homeowners are offered a significant protective measure against certain types of creditors through the filing of a Declaration of Homestead. Massachusetts real estate law recognizes this declaration as a way to safeguard the equity in your primary residence.
Benefits of a Homestead
The Declaration of Homestead in Massachusetts protects up to $500,000 of a home’s equity from unsecured creditors. In the event of financial upheavals, such as bankruptcy or accruing high medical bills, this declaration prevents the forced sale of the home to satisfy such debts. This protection is pivotal in maintaining family stability and continuity, especially in unforeseen financial circumstances. It is important to note, however, that this protection does not extend to secured creditors, such as mortgage banks, nor does it cover tax liens or other specific types of debts.
Even without a formal declaration, Massachusetts law automatically provides a $125,000 equity protection. However, for homeowners with substantial equity, formalizing the protection to the full $500,000 is highly advisable.
Who Should File for a Homestead?
A Declaration of Homestead is particularly beneficial for:
- Homeowners who have accumulated significant equity in their property.
- Individuals in professions vulnerable to lawsuits or those owning businesses, where financial risk is higher.
- Families looking to ensure long-term housing security for dependents.
Process for Filing a Homestead
Step 1: Acquiring the Form The Homestead Declaration form is available at the local Registry of Deeds or can be downloaded from their official website. This form requires detailed information about the property and its ownership.
Step 2: Completing and Notarizing the Form The form must be filled out accurately and then signed in the presence of a notary public to ensure its legality.
Step 3: Submission and Fee Payment The completed form, accompanied by a filing fee (typically around $35, though this can vary by county), should be submitted to the Registry of Deeds where the property is located. This can be done either in person or by mail.
Step 4: Recording the Declaration Once the form is submitted, the Registry of Deeds will record the declaration, officially activating the homestead protection.
Step 5: Securing a Recorded Copy After the declaration is recorded, obtaining a certified copy from the Registry of Deeds is recommended for personal records.
The Role of a Real Estate Attorney
The process of filing a Declaration of Homestead, while straightforward, involves several critical legal steps. Engaging a real estate attorney ensures that all aspects of the form are correctly handled, the declaration is appropriately filed, and the homeowner’s rights are fully protected under Massachusetts law. An attorney can provide tailored advice and ensure that the filing process is seamless, offering peace of mind that one’s home is protected.
For homeowners in Massachusetts, taking the step to file a Declaration of Homestead is a wise move towards securing one’s financial and familial stability.
