Declaration of Homestead (pdf)
           (Spouse as Declared owner)
Homestead Declaration (pdf)

Declared Homesteads Mail Solicitations

County Assessor/Recorder/Clerk Gregory J. Smith are collaborating in an effort to make consumers aware of recent mail solicitations for the purchase of Homestead Declaration Services.

Taxpayers have reported receiving sales pitches to purchase a homestead form that may be obtained for free or only a nominal fee. These homeowners are being approached by law firms and homestead companies to pay for services to prepare Homestead Declaration forms.

WHAT CONSUMERS NEED TO KNOW ABOUT HOMESTEAD DECLARATIONS

Questions/Answers

Q: If I receive an application for a homestead declaration from a private company or legal firm, must I pay for their processing fee?

A. No. You can do this yourself by purchasing a Homestead Declaration form from a stationery or office supply store for about $2. This form can also be downloaded at no charge from the Assessor/Recorder/Clerk’s web site at www.sdarcc.com.

Q: What is a Declared Homestead?

A. A Declared Homestead is a dwelling described in a homestead declaration and must be real property. A dwelling in which an owner or spouse of an owner reside may be selected as a declared homestead. The recording of a Declared Homestead gives California homeowners limited protection of their real property home equity from judgments, liens and claims by creditors.

Q: Why do people file a Homestead Declaration?

A. The most common reason homeowners record a Homestead Declaration is to protect the equity in their homes when they are involved in a law suit or anticipate the filing of a court action against them.

Q: Are there any disadvantages to recording a Declaration of Homestead?

A. Some lenders require the removal of a Declared Homestead before a home loan can be approved.

Q: How do I qualify for the benefits of a Declared Homestead?

A. In order to qualify, the home must be your principal place of residence, and you must record a Homestead Declaration in the County Recorder’s Office.

Q: Can I record a Homestead Declaration on my rental property or vacation home?

A. No. You are only eligible for the benefits of a Declared Homestead on your principal place of residence, and can only qualify for one exemption at a time.

Q: How much of my equity does the Declared Homestead protect?

A. Currently, amount protected by a Declared Homestead is $50,000 for single homeowners and $75,000 for families. The equity exemption is $125,000 for seniors 65 years of age or older as well as certain disabled persons. The $125,000 home equity exemption is also available to homeowners 55 years of age or older earning less than $15,000 a year if single or $20,000 if married.

Q: How does a Homestead Declaration work?

A. If the market value of your home is $250,000 and you have a first mortgage of $160,000 and a second mortgage of $40,000, you have equity of $50,000 in your home. The homestead exemption protects this equity against creditors.

Q: What do I do with a Homestead Declaration form after I obtain one?

A. The form must be completed and the owner(s) signature notarized. The document must then be recorded in the County Recorder’s Office. These offices are located in downtown San Diego in the County Administration Center at 1600 Pacific Highway, Suite 260; in North County at 334 Via Vera Cruz, Suite 150 in San Marcos; and in East County at 200 So. Magnolia Avenue in El Cajon.

Q: How much does it cost to record a Homestead Declaration?

A. The cost for a notarized signature is $10, and the fee for recording a one-page Homestead Declaration form is $7.

Q: Are there any debts not protected by a Declared Homestead?

A. Yes, debts not protected by a Declared Homestead include foreclosures on mortgages, mechanics liens and back taxes. Judgment liens awarded to creditors before you record your Declaration of Homestead are not covered.

Q: Can I remove the Declared Homestead if I want to?

A. Yes. Some lenders require the removal of a Declared Homestead before a new loan is approved. You can remove it at any time by recording a form called Abandonment of Homestead. If you record a Declared Homestead on another property, the Declared Homestead on the first property is automatically cancelled. When you sell your home, it is also automatically canceled.

Q: Will my property taxes be increased or decreased by recording a Homestead Declaration?

A. Neither. The recording of a Homestead Declaration will not affect your property taxes.

Q: Is the Declared Homestead the same as the Homeowner’s Exemption?

A. No. The two programs are totally different. Recording a Homestead Declaration may protect some of the equity in your home, while the Homeowner’s Exemption allows a property tax reduction for owners who occupy their homes. For more information about the Homeowner’s Exemption, please call the Assessor’s Office at (619) 531-5772.

Q: Where can I get more information about the benefits of a Declared Homestead?

A. For more information about Declared Homestead, please refer to California Code of Civil Procedure Sections 704.910 through 704.995 or consult your legal advisor.

Q: What is the Homestead Exemption?

A. As opposed to a Declared Homestead, discussed in detail above, the Homestead Exemption is separate a separate statutory right given to homeowners. This right automatically protects equity in dwellings from involuntary sales. The homeowner’s equity is protected as follows: Currently, the amount protected is $50,000 for single homeowners and $75,000 for families. The equity exemption is $125,000 for seniors 65 years of age or older, as well as certain disabled persons. The $125,000 home equity exemption I also available to homeowners 55 years of age or older earning less than $15,000 a year if single or $20,000 if married.