Massachusetts Homesteader Law

HOMESTEADS-General Laws of Massachusetts

Frequently Asked Homesteader Questions

November 1, 2004, every homeowner in Massachusetts is allowed to protect up to $500,000 worth of home equity from most creditors and, in the case of elderly or disabled joint homeowners, up to $500,000.00 each, provided that the homeowner has filed a declaration of homestead and occupies or intends to occupy the real property.

The Declaration of Homestead is a legal document filed at the registry of deeds that informs the public that the homeowner is asserting his rights to protect the equity in his principal residence from subsequent creditors. The document must be filed at the registry where the deed to the home is recorded.

Persons 62 years of age or older, regardless of marital status, or of a disabled person or persons, regardless of age, should be protected against subsequent attachment to the maximum amount of $500,000.00 each.

A homestead can protect your equity in many situations. There are, however, some obligations which are not covered such as debts preceding the filing of the declaration, debts relating to the purchase of the home, tax obligations and child/spousal support order obligations.

Most legal experts would agree that filing a homestead is a good idea for nearly all homeowners. Based on the substantial increases in the value of homes in the state in recent years, many people have significant amounts of equity in their homes that can be protected with the filing of this one simple document.

If you are interested in filing a Declaration of Homestead, please ask, we will be happy to provide you with the proper paperwork. Your closing attorney can record this document at the same time he is recording the closing documents and transfer of title, or you may record it yourself at a later date.

FREQUENTLY ASKED QUESTIONS

When should I get a Homestead?

As soon as possible! The Homestead only protects you from the debts that arise AFTER the Homestead is recorded.

What is the downside of a Homestead?

There really isn’t one. You can still sell you home or refinance it. It will not harm your credit report. It just protects your home investment.

Do I still need Hazard Insurance?

Your Homestead does NOT replace insurance. You should still carry adequate insurance on your home, car and personal possessions.

My wife and I both own our home, do we need to file two Homestead forms?

No, the Homestead law specifies that only one spouse may file a Homestead. That single act protects the family home against creditors of either spouse. However, if you or your spouse are 62 or older, you may both file a Homestead form.

Should I file a Homestead on my vacation home?

The Homestead only applies to your primary residence.

I just refinanced my home, do I need a new Homestead?

That is a good question! My answer is, there is no clear answer.

The technicalities of the law state that a mortgage is a deed, so a newly recorded mortgage would dissolve the existing Homestead. However, most lawyers that I have spoken with feel that a mortgage is not a deed despite the technicalities of the law. Therefore, under their reasoning you would not need to record a new homestead after recording a new mortgage.

Should I file a new Homestead just to be safe?

Some lawyers and many people feel they should. The only problem with this is that the Homestead protects against debts that arise AFTER the Homestead is recorded, NOT prior debts. A new Homestead dissolves an older one, and there is no continuation of coverage.

***My answer to the last two questions remains the same, and that is - There is no clear answer now, however, there is currently under petition to amend the Homestead Law – Section 7 of Chapter 188 to add the following paragraph –

“A mortgage executed by an owner for property that is already subject to a declaration of Homestead shall not terminate such Homestead.”

You may want contact your attorney and get their professional advice.