| Rationale for homestead laws | | | | provided for by the Texas Constitution. |
| In Texas, homestead laws were first promulgated in | | | | Texas homestead exemptions |
| the 1800s to protect homeowners and farmers from | | | | The Texas Constitution provides for homestead |
| losing their lands through foreclosure. When the 1837 | | | | exemptions that enable the homeowner to pay |
| Depression resulted in landowners at that time failing | | | | lower taxes on the property. If it is appraised at |
| to pay on their mortgages and having their lands | | | | market value of say $100,000, certain exemptions will |
| foreclosed, the State saw the need to come up with | | | | apply so that valuation is reduced and the |
| legislation that will ensure that families will not lose | | | | corresponding tax likewise reduced. The exemptions |
| their land due to extraordinary economic fluctuations | | | | that may apply include school taxes (up to $15,000), |
| and thereupon become public welfare burdens. | | | | county taxes for flood control or infrastructure (up |
| Homestead protection laws came to form an integral | | | | to $3,000), general homestead exemption (up to |
| part of the State’s constitution. | | | | $15,000), disability exemption (up to $10,000), optional |
| A homestead is simply put, residential land where the | | | | percentage exemptions granted by a city, county, |
| family builds its home. The land and the | | | | school or special district (up to 20% of appraised |
| improvements thereon form part and parcel of the | | | | value of the building or $5,000 whichever is higher). |
| homestead. An urban homestead is a residential | | | | In order for a homeowner to avail of the |
| homestead with an area of up to 10 acres while a | | | | exemptions, he or she must satisfy the definitions |
| rural homestead is one with an area of up to 200 | | | | and requirements for a residence homestead as |
| acres. Notwithstanding the value of the land, the | | | | stipulated in the Texas Constitution. |
| homestead identification is based on the size of the | | | | Filing for Texas homestead exemption |
| land. | | | | Any new homeowner, a recent buyer or builder, of a |
| Protecting the homeowner and his family | | | | residential property in Texas may file for the Texas |
| So that they will not be homeless and become | | | | homestead exemption. The principal residence of the |
| burden to public welfare, the Texas homestead | | | | homeowner will always qualify, subject to certain |
| exemption prohibits the forced sale of the property | | | | conditions being satisfied under the State’s |
| to satisfy all creditor claims against the homeowners. | | | | Constitution. Even if the homeowner does not |
| The law specifies certain liens that may be attached | | | | occupy the home continuously, for example if the |
| to the property strictly for purposes of financing the | | | | owner is in the military and gets assigned elsewhere |
| purchase of the homestead, paying taxes due on it, | | | | for a year maybe, the exemption will still apply as |
| financing the renovation of any improvements on the | | | | long as the home remains the principal residence of |
| land, for partition purposes due to probate or | | | | the owner. The exemption ends when ownership is |
| divorce, and as security for home equity loans as | | | | transferred by ultimate sale. |