Real Estate Pulse: What you need to know about homestead law
Big changes came to Arizona’s homestead law this year.
Under the previous Arizona law, up to $150,000 of equity in your residence was automatically protected from creditors. In other words, you were entitled to keep $150,000 in sales proceeds from the sale of a homestead property, even if you have creditors that are trying to collect from you. The Arizona homestead exemption applies to a person’s residence where they reside and is automatic – you do not need to file a homestead declaration to claim the exemption.
But in 2021, Governor Ducey signed into law Arizona House Bill 2617, which addressed the homestead exemption.
The primary changes to the homestead exemption, which went into effect on December 31, 2021, include the following: (a) the automatic creation of a judgment lien against homestead property upon the recording of a money judgment in the county where the property is located; and (b) an increase in the homestead exemption to $250,000 from $150,000.
But that’s not all. The new law has a big impact on title companies and the new laws automate the process by which a judgment lien attaches to homestead property and make it much more difficult for judgment debtors to avoid paying recorded judgments.
Confused? Want to learn more? Check out this episode of “Real Estate Pulse with MacQueen & Gottlieb” to learn everything you need to know about Arizona’s homestead law.
MacQueen & Gottlieb, is focused on assisting clients on a multitude of real estate related matters; specifically, but not limited to real estate litigation and transactions, business law and estate planning – both for the commercial and residential environment.