Massachusetts Homestead Protection Law (effective March 16, 2011)

On March 16, 2011, a new Massachusetts Homestead law went into effect.  It completely revised and modernized Massachusetts General Laws Chapter 188, sections 1-10.  Here are some of the important highlights:

• The Homestead law allows Massachusetts homeowners who reside in the home to protect their principal residence from certain creditors, up to a certain amount
• Existing homesteads recorded prior to March 16, 2011 remain valid
• All homesteads are subject to valid mortgages
• Homeowners get an automatic $125,000 homestead; no recordation of a homestead declaration is needed for this protection
• Homeowners can protect up to $500,000 in equity in their homes by recording a homestead declaration; all owners must sign to gain full protection
• All owners must occupy or intend to occupy the home as principal residence
• All owners who are elderly or disabled should record a homestead under section 2 of the new law to gain maximum protection; they must attach a disability award letter or a Massachusetts physician’s letter to their homestead declaration
• Both spouses can record a homestead under the new law
• Property held in a trust can be homesteaded
• Mobile homes and manufactured housing can be homesteaded
• Every homeowner who has refinanced his/her mortgage in the last several years should consider recording a new homestead declaration since many refinancing mortgages contained a waiver of homestead rights
• Homeowners may benefit from recording a new homestead early since homesteads recorded under the new law are senior to liens recorded after the homestead is recorded
• The children and surviving spouse of a person who has recorded a new homestead gain special protections

 Additional resources:

• Link to the new law
• Questions and Answers about the Homestead Act (downloadable brochure, on the Secretary of State's website)
• Declaration of Homestead Form  (fillable PDF, on the Secretary of State's website)
• Declaration of Homestead Form for Homes Owned by Trustees (fillable PDF, on the Secretary of State's website)
• Massachusetts Law About Homestead (Massachusetts Trial Court Library)