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Robert J. Mather & Associates
98 East Grove Street
Middleboro, Massachusetts 02346
Phone: (508) 946-0066
Fax: (508) 946-4474
Web Site: RJMATHERLAW.COM

What is a "Homestead"?

Massachusetts General Laws Chapter 188, Section 1 allows an owner of real estate to declare that they hold their property as their "homestead". The document that creates the homestead is called a Declaration of Homestead. In order for the property to qualify, it must be occupied as the principal dwelling of the declarant. If a homestead is properly created, the legal effect is that the first $300,000.00 of equity in the property is exempt from seizure by creditors. Without a homestead a creditor can seize and sell a person's property to satisfy the debt out of the equity in the home, unless the homeowner has some other protection against creditors. The homestead does not protect a person from being sued by creditors but does protect them from losing their home to creditors if they have $300,000.00 of equity or less, or protects the first $300,000.00 of equity if they have more than that amount of equity. The homestead protection does not apply to debts incurred before the creation of the homestead, nor does it apply to certain other debts such as taxes, child support, alimony or other probate court orders.

If you are buying a home you can declare a homestead, but the Declaration of Homestead will have to be recorded after the mortgage. Of course, the homestead does not protect a home owner from the debt owed to the bank. If you already own your home, you can create a homestead at any time.

If you wish to create a homestead at the time that you purchase your home, you should inform the closing attorney prior to the loan closing and he or she can have it ready for you to execute at the closing. The cost of the homestead is minimal in comparison to the protection that it affords. Our office charges $75.00 for the drafting of the document and the Registry of Deeds will charge approximately $12.00 to record the document.

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