Filing a “Declaration of Homestead” can protect the equity you have in your home.

Lisa Wetzel and Jim Valentine
RE/MAX Realty Affiliates

The Homestead Act is one of the gifts the Constitution of the State of Nevada gives to homeowners. Its amazing how few people actually take advantage of it. It’s our experience that most of the people we speak with don't even know it exists. Filing a Declaration of Homestead is so easy and it is such a valuable tool, we want to make sure that all Nevada homeowners know about this very inexpensive way to protect the largest investments they own.

A creditor may file suit and can record a judgment lien against any real property you own. Once a Declaration of Homestead is properly filed, Nevada law protects the equity in your home up to $500,000 This protection precludes seizure or forced sale of your residence by general creditor claims (unpaid medical bills, bankruptcy, charge card debts, business & personal loans, accidents).


If you get sued and a judgment is been entered against you, the person or company that wins the lawsuit can force the sheriff to sell your home or mobile home to pay off the judgment. However, if you Homestead your home or mobile home, in most instances, the person or company that wins the lawsuit is precluded from attaching the first $500,000 of your equity.


Who can homestead?


You must own or be buying your home or mobile home in order to file a Declaration of Homestead. The home must be your principle residence, not a rental or investment property.
It doesn’t matter whether you are single, married or an unmarried head of household. Anyone may take advantage of the Homestead Act. You may homestead your mobile home even though you don't own the land the mobile home sits on.


Are there any restrictions on homesteading?


Some mortgages may prohibit homesteading. You should check with your bank or financial institution to learn whether the institution restricts your right to homestead your property. A homestead will not protect your home or mobile home if the judgment is for:


· Taxes
· The mortgage or deed on the home or mobile home.
· Improvements made on the home or mobile home.
· Mechanics liens and other liens on the home or mobile home.
· Any debt or obligation you willfully and voluntarily incur


What is the amount you can protect by homesteading your property?


You can only protect $500,000 equity in your home or mobile home by homesteading it. If your property is worth more than $500,000 you should go ahead and homestead the property but you will only be able to protect $500,000 of your equity in it.


Is it possible to protect more than $300,000 in equity against execution?


Under a 1997 law it is now possible to obtain allodial title to your homestead once it is totally paid for and provisions are made for the payment of future taxes for a period equal to the life expectancy of the youngest titleholder. NRS 361.900-920. To find out if you may be eligible for this new program contact your local county tax assessor.


How do I homestead my property?


1. Obtain a Declaration of Homestead form. Most office supply stores and the County Recorder's office carry the forms. You may also pick up a Declaration of Homestead form and instruction sheet from Lisa and Jim at RE/MAX Realty Affiliates, 1320 Hwy 395 in Gardnerville.


2. Read the Declaration of Homestead form carefully. Be sure to fill in all of the blanks. The form must be printed legibly in black ink. Text can not extend beyond the one inch margins on all sides of the form. An additional $25.00 recording fee could be applied if the form does not meet these requirements at the time of recording.


3. Sign it before a notary and print your name beneath your signature.


4. Record your Declaration of Homestead by taking or mailing the form to the County Recorder's office of the county in which the property is located.


The Douglas County Recorders Office is located at:
Douglas County Recorders Office
1616 8th Street ( PO Box 218 )
Minden, NV 89423 775-782-9025


The Carson City Recorders Office is located at:
Carson City Clerk-Recorder
885 E. Musser Street Ste. 1028
Carson City, NV 887-2260


The fee to record the document is $14.00 for the first page plus $1.00 each for any additional pages. The Recorder's office will record your Declaration of Homestead and return the form to you by mail.


When should I homestead?


You can record your homestead at almost any time, even if you have already lost a lawsuit or had a judgment entered against you. Additionally, it can be recorded to protect your property after the person or company who sued you has already made plans to sell your home or mobile home. A Declaration of Homestead is effective and will protect your equity as long as it is recorded at any time before your home or mobile home is sold.


Is it time for a new homestead?


Nevada law requires a homestead to be abandoned in writing. This means the homestead placed on a prior residence should be released by execution of a written Abandonment of Homestead, which is then recorded either before or concurrently with a new homestead declaration.


In the event a spouse should pass away, the Homestead will remain in full force and effect, without the need for further filing. You may have to make a new Declaration of Homestead if you move or it your personal life changes. To protect your home, prepare and record a new homestead form if you:


· Sell your home and buy another one to live in.
· Move your mobile home from one lot space to another.
· Marry, divorce or become widowed.


To obtain a homestead packet or additional information about homesteads you may contact Lisa Wetzel and Jim Valentine at RE/MAX Realty Affiliates.



Lisa Wetzel and Jim valentine can be reached at (775) 782-8799 ext #254 or email: carsonvalleyland@hotmail.com