County of Los Angeles - Department of Consumer Affairs

What is a homestead?  What does it do?

A homestead helps to protect you from losing your home to people you owe money to. If you are sued for money in a court and lose, the person who sued you will receive a judgment from the court. If you do not pay the judgment, they can try to collect the money you owe by garnishing your wages or bank accounts, or by having your automobile or home sold to pay the debt. The homestead law protects a certain amount of the value of your home from being taken in order to pay a judgment.

A homestead protects some of the equity in your home. If your home is worth more money than you owe on it, you have equity. For example, if your home is worth $350,000 and you owe $300,000, you have $50,000 in equity. A homestead can protect the $50,000.

There are two types of homesteads, automatic and declared.

What is an automatic homestead?

If you live in the home you own, you already have one. It protects some of your home equity until you sell your home. You do not have to sign or file anything to have an automatic homestead

What is a declared homestead?

A declared homestead is a legal form that you record with the Registrar-Recorder’s office. A declared homestead protects some of your equity for six months after you sell your home if the following three conditions are all true:

• You sell your home and buy another home within six months;
• The protected amount is used to buy another home;
• You record a homestead on the new home.

Only the home you live in, qualifies for a homestead.

Who needs a declared homestead?

If you’ve been sued in court, lost, and have a large money judgment against you, a declared homestead can help. If you sell your home, it protects some of the proceeds for six months. This gives you time to buy another home and record another declared homestead.

How much does a homestead protect?

Both automatic and declared homesteads protect the same amounts:

• $50,000 for an individual;
• $75,000 if the homeowner lives with at least one family member who has no interest in the house;
• $150,000 if the homeowner is 65 years of age or older, or is physically or mentally disabled;
• $150,000 if the homeowner is 55 years of age or older and single with an annual income of $15,000 or less;
• $150,000 for a married couple with a combined annual income of $20,000 or less;

What a homestead does not do

A homestead does not protect you against:

• Foreclosure of your home by mortgage lender if you are behind on payments.  (See our Foreclosure information sheet);
• The enforcement of a mechanic’s lien;
• A judgment for child or spousal support.

WARNING! – Homestead Filing Services

Many homeowners, especially those who have just purchased a home, receive mail from homestead filing services. The letters often look like they are from a government office and lead you to believe that you must file a declared homestead. Don’t be fooled! The law prohibits homestead agencies from making false or misleading statements or presenting themselves as a government agency. The law also prohibits them from charging more than $25.00 to file a homestead declaration, or from collecting any fees until after they have recorded a homestead declaration.

How do I file a declared homestead?

You can file a declared homestead by taking these steps:

1. Buy a declared homestead form from a stationery store, or download one online from the Registrar-Recorder’s website at: www.lavote.net/GENERAL/PDFS/HOMESTEAD_DECLARATION.pdf, or click here.
2. Fill out the form.
3. Sign the form and have it notarized.
4. Contact the Registrar-Recorder’s office where the property is located for fees and filing addresses.

                Los Angeles County Registrar-Recorder's Office
                12400 East Imperial Highway, Room 1002
                Norwalk, CA 90650
                (562) 462-2125

        Also; see the following related forms:

        Declaration of Homestead (Spouse as Declared Owners)

        Declaration of Abandonment of Declared Homestead

        Homestead Information Sheet (from the Department of Consumer Affairs)

Remember: Companies offering to help you file a declared homestead cannot charge more than $25.

For more information, speak with one of our counselors at (800) 973-3370. If you live outside of Southern California, call us at (213) 974-1450, or send an E-mail to dca@co.la.ca.us.

For more information:
County of Los Angeles Department of Consumer Affairs
B-96 Kenneth Hahn Hall of Administration
500 W. Temple Street * Los Angeles, CA 90012-2706
Telephone (800) 593-8222 (within LA County)
website: lacountydca.info