Consumer Law: Homesteading Your Home or Mobile Home
(NRS Chapter 115)
Has someone threatened to sue you or is there a judgment against you? Do you own and live in your home or mobile home? If so, homesteading your home or mobile home can help you!
What is a homestead?
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 win the lawsuit cannot force a sale of your home or mobile home. A homestead means that you have filed a declaration of homestead form with the county recorders office. You may homestead your property to protect it from creditors.
[Return to top]Who can homestead?
You must own or be buying your home or mobile home to
homestead. You must live in your home or mobile home. If you rent it out to someone else you cannot homestead the home or mobile home, even though you own it.
It does not matter whether you are single, married or an unmarried head of household. All people may homestead their home. You may homestead your mobile home even though you don't own the land the mobile home sits on.
[Return to top]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.
[Return to top]What is the amount you can protect by homesteading your property?
You
can only protect [$125.000] $200,000
equity in your home or mobile home by homesteading it. If your property is
worth more than [$125.000] $200,000
you should go ahead and homestead the property but you will only be
able to protect [$125.000] $200,000 of your equity in it.
[Return to top]Is
it possible to protect more than [$125.000]
$200,000 in equity against execution?
Under
a 1997 law it is now possible to obtain Aallodial 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 title holder. NRS
361.900-920. To find out if you may be eligible for this new program contact
your local county tax assessor.
[Return to top]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 Washoe Legal Services.
2. Read the Declaration of Homestead form carefully. Be sure to fill in all of the blanks.
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. If the home or mobile home you are homesteading is in Washoe County, you must take or mail your Declaration of Homestead to the Washoe County Recorder. The Washoe County Recorder's Office is located at:
1001 E. Ninth Street Bldg. A, Suite 140/150
Reno, Nevada 89512.
You must pay a recording fee of $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.
[Return to top]When should I homestead?
You can record your homestead at almost any time. You can record your homestead even if you have already lost a lawsuit. You can record it and protect your property even if the person or company who sued you has already made plans to sell your home or mobile home. You can record the homestead and protect your property at any time before your home or mobile home is sold.
[Return to top]Is it time for a new homestead?
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 lots space to another.
- Marry, divorce or become widowed.
To obtain a homestead packet or obtain additional information about homesteads you may contact:
Washoe County Recorder's Office
1001 E. Ninth Street
Bldg. A, Suite 140/150
P.O. Box 11130
Reno, NV 89520-0027
(775) 328-3661
FAX: (775) 325-8010
[Return to top]Consumer links related to homesteading
The following web sites may provide additional information or assistance regarding consumer law:
American Bankruptcy Institute
(ABI) Consumer Information Center
http://www.abiworld.org/consumer/A.html
Better Business Bureau
http://www.bbb.org/
Consumer Law Page (Alexander Law Firm)http://consumerlawpage.com/
Fair Debt Collection (FTC)
http://www.ftc.gov/bcp/conline/pubs/credit/fdc.htm
National Association of Consumer Advocates
(NACA) Home Page
http://www.law.umkc.edu/lawresources/naca/naca-home.htm
National Consumer Law Center
http://www.consumerlaw.org/
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