Follow Up on the Nevada Homestead Act

By
Real Estate Agent with RE/MAX Realty Affiliates

We've had many inquiries lately regarding the act of filing a homestead on a primary residence as protection from credit cards debt.    The Nevada Homestead Act does not protect a homeowner from any debt that was voluntarily incurred.  This category includes mortgage financing, credit card debt, auto financing, lines of credit and Federal tax liability.  Following is a repeat of an article we published in June of 2007 that offers a explanation as well as links to print the required homestead document.

Homeowner's are advised to seek competent legal counsel  regarding the ramifications of filing a Declaration of Homestead.  This article is intended as a public service and not legal advice. 

I've heard I should "Homestead" my house ... what does that mean?

The Nevada Homestead Act today doesn't mean you can squat on 160 acres of public land and eventually own it, rather it is a means to protect equity in your home against seizure, forced sale by general creditor claims, and judgments that might be entered against you.  The amount of protection was recently increased in Nevada to $550,000.  The Nevada Homestead Act is one of the gifts the Constitution of the State of Nevada gives to homeowners and yet it's amazing how few people actually take advantage of it. Most of the people we speak with don't even know it exists.

Here's how it works:  You must own or be buying your home or mobile home in order to file a Declaration of Homestead. The home must be your principle residence, not a rental or investment property.  It doesn't matter whether you are single, married or an unmarried head of household.  You may homestead your mobile home even though you don't own the land the mobile home sits on. Some mortgages may prohibit homesteading, check with your lender to ascertain their position on you homesteading your property.  

Be aware that a homestead will not protect your home or mobile home if the judgment or lien is for:  Taxes, the mortgage or deed on the home or mobile home, improvements made on the home or mobile home, mechanics liens and other liens on the home or mobile home, any debt or obligation you willfully and voluntarily incur. 

Thanks to legislative changes this year, you can protect $550,000 of your equity. If your equity exceeds $550,000 you should go ahead and homestead understanding that you will only be able to protect $550,000 of your equity.  To protect your property all you need to do is: Obtain and fill out a Nevada Declaration of Homestead form, sign it before a notary and print your name beneath your signature, Record it at the County Recorder's office of the county in which the property is located.  There is a nominal recording fee.  You can record your homestead at almost any time, even if you have already lost a lawsuit or had a judgment entered against you.                                                                                                                               
If you have already filed a Declaration of Homestead on your property remember that you will need to prepare and record a new one if you: Sell your home and buy another one, move your mobile home from one lot space to another, marry, divorce or become widowed, get a new loan.

Our Advice:  Filing a Declaration of Homestead is easy and is such a valuable tool that we recommend all Nevada homeowners utilize this very inexpensive means to protect their home equity.   

You can obtain a homestead packet at most office supply stores, or contact Lisa and Jim by phone or email, or simply stop by at 1320 Highway 395, Gardnerville.  You can also Click Here for Nevada Homestead Form

When it comes to choosing professionals to assist you with your real estate needs... Experience is Priceless!  Lisa Wetzel & Jim Valentine, RE/MAX Realty Affiliates, 775-781-5472,   Visit our websites at www.carsonvalleyland.com   or  www.carsonvalleyremax.com   email us at  carsonvalleyland@hotmail.com

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Location:
Nevada
Tags:
nevad homestead act

Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the magnifying-glass to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the magnifying-glass to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Anonymous
Anonymous
Pam Taylor

Hi Jim,

Is there any law allowing you to homestead for land ownership anywhere in Nevada?

If you build a home on it, etc...?

Please respond at:   ptaylor@ovdinc.com

Thanks,

Pam

Jul 21, 2008 06:55 PM #1
Anonymous
Anonymous
Pam Taylor

Hi Jim,

Is there any law allowing you to homestead for land ownership anywhere in Nevada?

If you build a home on it, etc...?

Please respond at:   ptaylor@ovdinc.com

Thanks,

Pam

Jul 21, 2008 06:55 PM #2
Rainmaker
122,067
Jim Valentine
RE/MAX Realty Affiliates - Gardnerville, NV

Pam,

If you are refering to the old "homestead" act where folks could actually obtain free land from the government by homesteading or improving the property, those days are gone.  The "Homestead" law we refer to is a law designed to protect the homeowner from judgements againt them regarding their primary residence.  Two different things.  We hope this helps.

Jul 24, 2008 08:28 AM #3
Anonymous
Anonymous
Margie

Can a home and a fifth wheel be homesteaded. Husband lives in the house while I live in the fifth wheel. We can't live together but married. I also use my maiden name (legal) My name is not on the house but was bought when married, still married.

I live on the side of his driveway

Margie

 

Sep 19, 2008 12:20 AM #4
Rainmaker
122,067
Jim Valentine
RE/MAX Realty Affiliates - Gardnerville, NV

Our initial response is "NO", because the 5th wheel is not real property and the law specifically states "real property".  Also, each individual has a primary residence.  Are you in title (on the deed) to the real property?
 
We re not attorneys! 

The IRS may allow RV's to qualify as "Vacation Homes".  We really don't think this is the same.  Likewise, the "Declaration of Homestead"  requires a legal description and the 5th Wheel in the back yard does not have that.
 
No, we don't think this qualifies but ask an attorney.
 
Best of Luck!

Sep 19, 2008 10:41 AM #5
Anonymous
Anonymous
rose

Bought our home 17 years ago.  In 2004, sold it to investor in California and have rented it for the last five years.  Is now in default and foreclosure is looming.  We filed homestead in 2000, is it still in effect and can it help us?

May 04, 2009 08:59 PM #6
Rainmaker
122,067
Jim Valentine
RE/MAX Realty Affiliates - Gardnerville, NV

Rose - It is my understanding that you must own to have a Homestead be of any effect.  Check the law in your state.  Have you thought of buying the home back?  You could maybe buy it via a short sale - for less than what is presently owed on it.  Maybe you could give the present owner a token amount and buy it from him conditioned on mitigating the arrearage with the lender.  It sounds like you like the home - these are some ways to stay in it.

May 05, 2009 08:45 AM #7
Anonymous
Anonymous
M.C. Bertrand

Can you provide any information about the homestead act as it relates to the state of North Carolina?

My husband and I would like to move there and purchase a home (or mobile home) outright, along with the land it rests upon.

We would like to know if the act is in place in NC and if so, would it protect our home from being taken from us in the event one or both of us are sued?

Thank you.

Sep 09, 2009 12:09 PM #8
Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the magnifying-glass to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Rainmaker
122,067

Jim Valentine

Ask me a question
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the airplane to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Additional Information