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9-22-2024 12:31am
Amount of Homestead Exemption Increases to Up to $1 Million
Darlene Cancell
Editor
Editor's note: the Massachusetts Homestead protection law protects a resident's primary residence from creditors. It protects up to $125,000 of home equity automatically. Those who file a Declaration of Homestead can protect an even greater amount of the home's value.
Thanks to the Norfolk County Registry of Deeds for contributing this news to Westwood Minute.
Dedham, MA – Norfolk County Register of Deeds William P. O’Donnell on September 20th announced to homeowners the recent increase in the amount of the homestead exemption and the importance of filing for Homestead Protection.
"The Homestead Law provides a homeowner with limited protection against the forced sale of their primary residence to satisfy unsecured debt up to $1,000,000 if they have filed. This is especially important when you consider that for most of us, a home is our most valuable asset. Consumers should take steps to protect that asset," noted Register O’Donnell.
"If you own a home, and it is your primary residence, you have an automatic homestead exemption of $125,000. However, if you file a Declaration of Homestead at the Registry of Deeds, the exemption increases to $1,000,000," said Register O'Donnell.
In August, state legislators passed Session Law 2024, c. 150, s. 51 (an Act relative to the Affordable Homes Act) that, among other benefits, increases the amount of protection offered by a written declaration of homestead from $500,000 to $1,000,000.
Homeowners who have already filed a homestead exemption do not need to re-file. “The increase in the amount of the homestead exemption applies retroactively to any valid homestead that is currently on record at the Registry of Deeds and to any future recorded Homesteads,” noted Register O’Donnell.
Another feature of the Homestead Law is the allowance for the filing of an Elderly Homestead Declaration, which defines an elder as a person who is 62 years of age or older and provides protection of $1,000,000 for each qualified person.
A Declaration of Homestead also protects home sale proceeds for a limited time and can protect home insurance proceeds for a limited time.
Certain debts are exempt from protection under the Homestead Act. These include federal, state, and local tax liens, primary home mortgages and nursing home liens. Most other pre-existing mortgages, debts, and encumbrances before filing of the Declaration of Homestead,are also not covered under the Homestead Protection Statute.
Declarations of Homestead are recorded at the Registry of Deeds for a state-imposed fee of $36.00. Additional information about the Homestead Law and the forms are available at no cost by going to the Registry’s website at www.norfolkdeeds.org.
Register O’Donnell concluded, "I want to reiterate that a Homestead provides limited protection against the forced sale of a homeowner’s primary residence to satisfy unsecured debt up to $1,000,000. While the debt is still owed, homeowners can have peace of mind knowing that with a Declaration of Homestead recorded at the Registry of Deeds, their primary residence cannot be forcibly sold to satisfy some debts."
If you have any questions about a Homestead, contact the Norfolk County Registry of Deeds Customer Service Center at 781-461-6101, Monday through Friday between the hours of 8:30 a.m. and 4:30 p.m. the Registry of Deeds is also on Facebook at facebook.com/norfolkdeeds and on X and Instagram at @norfolkdeeds.
The Norfolk County Registry of Deeds is located at 649 High Street in Dedham. The Registry is a resource for homeowners, title examiners, mortgage lenders, municipalities and others with a need for secure, accurate, accessible land record information. All land record research information can be found on the Registry’s website www.norfolkdeeds.org. Residents in need of assistance can contact the Registry of Deeds Customer Service Center via telephone at (781) 461-6101, or email registerodonnell@norfolkdeeds.org.
