New Homestead Law Goes into Effect March 16, 2011

NEW HOMESTEAD LAW – M.G.L. C. 188 – MASS ACTS CHAPTER 395:

The Massachusetts Legislature has rewritten the Homestead Law which takes effect March 16, 2011! This is exciting news for attorneys and property owners alike.

The homestead was enacted to protect homeowners from liens (a Homestead will not protect you from a Foreclosure) as long as the homeowner uses the property as his or her principal place of residence. Therefore, if you own multiple properties a Homestead can only be filed on your principal residence.

The statute now provides for an automatic homestead of one hundred and twenty five thousand ($125,000.00) dollars, without having to file any Homestead Declaration.

Property owners should be aware however, that up to a half of a million ($500,000.00) dollars of protection is available to those who file a Homestead Declaration with their county registry of deeds. While this new automatic homestead protection is a significant development homeowners should still file for the increased coverage since it is a great bang for your buck. It is still only thirty five ($35.00) dollars to file a Homestead Declaration plus a dollar or two (for postage) depending on your county. So that is still ONLY $36.00 or $37.00 dollars to file!

If you are unsure whether you have a homestead or if you know that you need one contact an attorney to have him or her explain the nuances behind the new Homestead Law.

Real Estate

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