Homestead Estate

Section: Homestead Estate Estimated study time: 45 minutes Content: The Massachusetts homestead estate is a unique and heavily tested topic on the Massachusetts real estate exam. Under M.G.L. Chapter 188, a homestead estate protects the primary residence of a homeowner from forced sale to satisfy most debts, up to the applicable dollar amount. As of the 2011 law revision (effective March 16, 2011), Massachusetts provides an automatic homestead of $125,000 without any filing requirement — this automatic protection applies to any homeowner's principal residence simply by virtue of ownership. A declaratory homestead (filed in the Registry of Deeds) provides enhanced protection of $500,000 per home, not per person. A homestead declaration is a simple, one-page document filed with the county Registry of Deeds and costs a nominal recording fee. The homestead estate protects against most unsecured creditors (credit card debt, medical bills, personal loans, most judgments) but does not protect against certain specific creditors. Homestead does NOT protect against: (1) the property tax lien; (2) a recorded mortgage (the mortgage must be in place before the homestead declaration for full protection); (3) a mechanic's lien; (4) a federal tax lien; (5) an estate tax lien; (6) debts incurred before the homestead was filed; and (7) an execution on a judgment obtained before the homestead was filed. The homestead protection is personal — it protects the owner and eligible family members (spouse and minor children) who use the property as their principal residence. Spouses who are tenants by the entirety in Massachusetts receive automatic homestead protection by virtue of the tenancy (discussed under the Ownership Types section). Additional homestead protection is still recommended for couples holding title as tenants by…