What is Homestead? - Posted by Kate

import · May 25, 2006, 1:26pm

Posted by kate on May 25, 2006 at 19:43:16:

Thanks! =)

import · May 25, 2006, 1:26pm

Posted by Kate on May 25, 2006 at 13:26:19:

I recently purchased a home in TX and I have been hearing about homestead. But I don’t know anything about it. Please excuse my ignorance.

What is homestead?

import · May 25, 2006, 2:59pm

Re: What is Homestead? - Posted by dealmaker

Posted by dealmaker on May 25, 2006 at 14:59:13:

Homestead, as used in TX has TWO meanings, both are important. If this home is your primary residence it is automatically your homestead. That means it is protected from attachment/seizure for any reason EXCEPT for nonpayment of (1) purchase money (or other RE secured) mortgage (2) ad valorem ppty taxes.

You are also eligible for a HOMESTEAD EXEMPTION, on your ppty taxes. This is a measure by which taxing authorities reduce the VALUATION of your ppty prior to applying the tax rates. For example your county may allow a $10K homestead exemption and your school district may allow another $15K ex. This is not a total of $25K, it’s a reduction of $10K prior to applying the county share, but a reduction of $15K prior to applying the school district (the biggest) share.

To take advantage of the HOMESTEAD EXEMPTION you have to take ACTION. Contact your local “appraisal district” and tell them you need to apply. They’ll mail you the forms and after a couple of months check and make sure it’s been applied. The applicatio is time sensitive so don’t waste any time.

dealmaker