One of my clients recently closed escrow on a Reno home and asked:
"How do I homestead my home and what protection will I have once completed?"
Homesteading your home is quite easy. All you need to do is complete a Declaration of Homestead form and record it with the county recorder in the county where your home is located. There is a small fee to process and notarize the declaration once you have completed it. If you live in Washoe County, the recorders office is located at 1001 E 9th Street, Building A, Suite 150, Reno NV 89520.
What is a homestead?
A homestead declaration protects your home from being seized and sold in the event that a money judgment is entered against you in court. Nevada home owners who have filed a Declaration of Homestead are protected under the Homestead Act Of Nevada, NRS 115.
For most judgments against you, your home in Nevada is protected up to at least $550,000 of the equity you have in your home. You are protected against most judgments except if you have judgment against you because:
You owe taxes on your home
You have a mortgage lien
You owe Child Support / Alimony
You have a mechanics lien
What kinds of properties are eligible?
Land, your house, things connected to the land (easements, gardens, fixtures)
Mobile Home (even if you don't own the land it sits on)
Who can declare a homestead?
You must own your home to file a homestead declaration. It must be your primary residence, not a rental or investment property. It does not matter if you are married or single. Both or a single married person can file. In most cases, a trustee can file for a person living in the intended home.
What happens if I sell my home once it has a homestead declaration filed?
If after receiving a Declaration of Homestead for your home you must keep the information on the form current. If you move, you must file for a new homestead. If you divorce, separate, become widowed or get a new loan, you will need to file a new declaration.
If you own a home in Reno or Sparks, Nevada, you should consider filing a homestead declaration with the Washoe County Recorders Office.
It is so easy to do and is such a valuable tool to help protect your home against creditors and could save you from having your home foreclosed on.
How Do I Homestead My Reno Home?