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A Homestead is a special provision under California real estate law that allows a homeowner to protect their property from forced sale in order to satisfy their debts, within certain limits. Filed in the form of a Declaration of Homestead, it must be acknowledged and recorded to protect the resident. It does not, however, protect the homeowner from trust deeds, mechanics liens or prior-to-filing liens.
While a homeowner is only able to have only one Homestead at a time, it may cover several different types of property, including a house and any adjoining property, a condominium or townhome, a farm or a Life Estate. The Homestead will protect the head of households for $75,000; persons who are mentally or physically disabled, or those who are over the age of 65 for $100,000; and any resident who does not qualify for one of the above for $50,000.
The requirements that must be met in order to make the Declaration of Homestead valid are:
- A statement showing that the claimant is the head of the family, stating the name of the spouse
- A statement showing that the claimant is residing on the property and claims it as his or her homestead
- A description of the premises and an estimate of cash value
- A statement as to the character of the property and confirmation that no former declaration has been made