Filing a Homestead Declaration

A Homestead Declaration is filed with the County Recorder. It protects your home from being seized and sold in the event that a money judgment is entered against you by a court. The following properties qualify for homesteading:

• Land with a dwelling house on it plus appurtenances (fixtures and buildings)
• A mobile home, whether or not the mobile home owner owns the land on which it sits
• A condominium unit

Why Consider a Homestead Declaration?

A homestead declaration protects the first $550,000 of equity you have in your home. If you have less than $550,000 equity in your home and the judgment is not related to repaying taxes, a mortgage or other loan arrangement, or certain liens your home will not be sold to satisfy a court judgment.

If your equity exceeds $550,000, the property (or a portion of it, if a court determines it can be divided) may be sold, but you are entitled to keep the first $550,000. If a title has been established, the exemption extends to all equity in the land, dwelling and appurtenances.
For more information on homestead declaration please contact your local County Recorder for more information.

Homestead Declaration refers to a form filed with the county recorders office to put on record one’s right to a homestead exemption. A homestead declaration protects a person’s home from being seized and sold in the event a money judgment is entered against him/her by a court.

NRS 115 is the chapter in the Nevada Revised Statutes that concerns the homestead law.

What A Declaration of Homestead Provides

When you record a Declaration of Homestead, Nevada law protects the equity in your home up to $550,000 from general creditor claims (unpaid medical bills, bankruptcy, charge card debts, business/personal loans, accidents) but would not preclude a seizure or forced sale of your residence from general creditors if your equity exceeds the $550,000. A creditor may file suit and can record a judgment lien against any real property you own. Recording a Declaration of Homestead protects your principal residence up to the statutory maximum. For example, if the value of your home is $645,000 and you have a first mortgage of $485,000 plus a second mortgage of $10,000, the equity is $150,000.

What A Declaration of Homestead Does Not Provide

The Homestead law does not protect you against debts secured by a mortgage or deed of trust, payment of taxes, IRS lien, mechanic’s lien, child support or alimony payments.

Questions?

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