Massachusetts Homeowners: HOMESTEAD LAW CHANGING

Courtesy of Kriss Law
UPDATE:  HOMESTEAD LAW CHANGING

Governor Patrick signed into law Senate Bill 2406 which is the most sweeping revision of the Massachusetts Homestead Statute in many years. The revised Statute addresses many issues that were previously left up in the air including whether a Homestead Declaration is revoked by a refinance who is actually entitled to Homestead protections.  Highlights of the amended law are:

1. Automatic $125,000 Homestead exemption even without filing a declaration - $500,000 with a filed Declaration
2. No need to re-declare your Homestead after refinancing
3. Exemption covers even preexisting debts but not mortgages on the residence enjoying the benefit of the Homestead
4. Homestead protection on the proceeds of the sale of a residence for one year after said sale
5. Closing Attorneys must inform Buyers of the availability of the Homestead protection

As we are now obligated to inform Buyers of the availability of Homestead protection, we will provide this notification and offer to prepare and file the pertinent documents for a reduced fee.  

The knowledge of the updated Statute is a chance to provide even greater resources to your clients than usual. Of course, if your clients have any questions in regard to these new changes, please do not have them hesitate to contact Kriss Law.