Understanding the Homestead Act!
Buying Real Estate
When you buy your first home there are a lot of new things to learn about. Some are very expensive, others not so much. This is one of the “not so much” items!
In the state of Massachusetts, one of the last states to offer this, we have what’s called the “Homestead Act”. And it’s a great thing that every home owner should have attached to their property. In fact, I would go as far to say that it’s shameful NOT to have a Homestead Act on your Real Estate. The Homestead Act protects a home owner from a law suit from taking their primary residence up to $500,000. Investment property is not covered in the Homestead Act. However, an owner-occupied 2 family would be covered up to that amount. There were some recent changes to the Homestead Act that reminded me of the importance of knowing about this for new home owners.
More information at http://www.sec.state.ma.us/rod/rodhom/homidx.htm.
Thanks for reading!