The Florida Constitution defines homestead protection in Article Ten, Section Four. The homestead protection is available if the real estate is owned by a natural person who intends the property to be his/her primary residence. Your homestead can be up to ∏ acre within a city or up to 160 contiguous acres if not located in a city. This homestead protection provides creditor protection as well as keeping the homestead for a spouse or minor children.
The protection from creditors means that most creditors cannot force a sale of your homestead to pay off your debts. There are exceptions:
1) the Internal Revenue Service – if you owe taxes, the IRS can force a sale of your home! 2) your mortgage – if you have one, the bank or lien holder can force a sale of your home to pay the debt you owe;
3) a mechanic’s lien – if you paid for work to be done on your home, and you haven’t paid the workers, they can file a lien against your home and force a sale of your home.
4) the State of Florida and its counties or municipalities can collect past due property taxes.
Next, there are restrictions on descent and distribution of a homestead. The homestead may not be devised to another after your death if you are survived by a spouse or minor children. If you move and transfer your homestead, the proceeds of the sale are protected under homestead status if you intend to reinvest in another homestead within a reasonable time.
Up to $1,000 of personal property are included in the homestead protection from creditors under the Florida Constitution. After your death, $20,000 of personal property is protected from creditors under the Florida Probate Code.
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