Key Takeaways
- Texas has the strongest homestead protection in the nation—protecting homes from most creditor claims
- Urban homestead is limited to 10 acres; rural homestead is limited to 200 acres for families or 100 acres for singles
- Homestead protection is automatic—no filing or declaration is required to receive protection
- Only certain debts can force sale of homestead: purchase money liens, property taxes, home equity loans (with restrictions), and mechanic's liens for improvements
- Both spouses must sign any document that encumbers or conveys homestead property
Texas Homestead Rights
Texas has some of the strongest homestead protection laws in the United States. These laws protect a family's home from most creditor claims.
Important: This section covers Texas-specific homestead law. For general property law concepts, see our Real Estate Salesperson exam prep.
What is a Homestead?
A homestead is a person's primary residence that receives special legal protection under the Texas Constitution and Property Code.
Types of Homesteads
| Type | Size Limit | Description |
|---|---|---|
| Urban Homestead | 10 acres | In city limits, used for residence |
| Rural Homestead (family) | 200 acres | Outside city, for family |
| Rural Homestead (single) | 100 acres | Outside city, for single person |
Key Point: The dollar value of the homestead is NOT limited—only the acreage. A $10 million home on 10 acres is fully protected.
Automatic Protection
Homestead protection is automatic:
- No filing required
- No declaration needed
- Protection begins when property becomes residence
- Protection continues until abandonment
What is Protected?
The homestead exemption protects:
| Protected | Not Protected |
|---|---|
| Primary residence | Second homes |
| Land up to limits | Acreage exceeding limits |
| Improvements on homestead | Business property |
| Certain personal property | Investment property |
Exceptions to Homestead Protection
Creditors can force sale of homestead for only four types of liens:
| Exception | Description |
|---|---|
| Purchase money liens | The mortgage used to buy the home |
| Property tax liens | Federal, state, and local property taxes |
| Home equity loans | With specific constitutional requirements |
| Mechanic's/materialman's liens | For work done on the home (with contract) |
Home Equity Loan Restrictions
Texas severely limits home equity loans:
| Requirement | Rule |
|---|---|
| Maximum LTV | 80% of fair market value |
| Cooling-off period | 12 days from application to close |
| Single lender only | One equity loan at a time |
| No more than once per year | Cannot refinance within 12 months |
| Spouse must consent | Both spouses must sign |
Spousal Consent Requirements
For any transaction involving homestead property:
| Transaction | Both Spouses Must Sign? |
|---|---|
| Sale of homestead | Yes |
| Mortgage/deed of trust | Yes |
| Lease of homestead | Yes |
| Any conveyance | Yes |
Exam Tip: If one spouse signs a deed without the other spouse's signature, the deed is VOIDABLE—the non-signing spouse can set it aside.
Homestead Tax Exemptions
Texas also provides property tax exemptions for homesteads:
| Exemption | Amount |
|---|---|
| General homestead | Varies by taxing unit |
| Over-65/Disabled | Additional reduction |
| School district | $100,000 off assessed value |
| Tax ceiling (freeze) | For seniors and disabled |
What is the maximum acreage for an urban homestead in Texas?
Which of the following creditors can force the sale of a Texas homestead?