What is a Homestead? California Has Automatic Homestead Protection!

If you have ever bought a house in California, you might remember receiving weird letters in the mail asking you to complete a form for a Homestead Declaration.  For a $25 fee, the company will process your paperwork for declaring your home as a Homestead. It's really not necessary as it's automatic in California. Here's a bit more information on Homesteads. If it sounds vague, it's because it is indeed vague!

What it is: A Homestead gives protection against involuntary claims against an owner's home.

It's Automatic in California! In California, every homeowner has an automatic homestead exemption of at least $50,000 for his or her residence. This protection does not require the signing or filing of any papers or documents.

This is the blah, blah, blah part...

The amount of the exemption increases to $75,000 if at least one member of the family unit living in the house owns no interest in the house, as, for example, when a homeowner lives with his or her minor children. If a homeowner is 65 years of age or older, or is physically or mentally disabled, the amount of the exemption is $150,000. The $150,000 exemption also applies to persons 55 years of age and older if the person is (1) single and has a gross annual income of not more than $15,000, or (2) married and the individual and his/her spouse have a combined annual income of less than $20,000, and the sale is involuntary.

You can also declare a Homestead as well by filing a one-page document in the County Recorder where the property is located.

For more information on declaring a Homestead, check out the Department of Consumer Affairs website on Homesteads.

For more  information on the historical homestead act, check out the Homestead National Monument of America website.