Home owners exemption and Quit claims deed. What do they have to do with each other

Question

Home owners exemption and Quit claims deed. What do they have to do with each other

Answer

Homestead exemption? That is your entitlement for a reduction in real estate taxes. A quit claim deed is a form of conveyance transferring whatever ownership the person has who is the grantor.

Answer

What does homestead have to do with quit claim deeds? Nothing, in particular. A quit claim deed merely is a type of conveyance - without warranties of title. You get whatever title rights (or flaws) the owner before you had. It has nothing to do with homestead. Your property, regardless of the method of conveyance, can be homestead if you meet the criteria.

There are three types of constitutionally protected homestead provisions or "exemptions". One is the tax reduction the poster above noted. Another is related to gifts, devise and probate (disposition at death) - homestead is not part of a probate estate.

The third, possibly the most important constitutional homestead exemption, is a homestead protection against forced sale by creditors. Florida is one of the few states that has such a constitutional protection. There are only three exceptions to this protection in the constitution - mortgage, mechanics lien and tax lien. All else depends on when the property was encumbered (such as a lien or judgment) in relation to the establishment of homestead. The rule of thumb is "first in time is first in right." A common misunderstanding is homestead and homeowners associations. An HOA lien usually precedes homestead, but not always.

To qualify for any of these types of homestead, an owner must be legally domiciled in Florida and claim the property as his/her primary residence. For example, there is case law regarding undocumented aliens who do not have the right to be here at all. That person may not claim homestead. That is the only example in case law of a person residing in Florida but unable to claim homestead.

Again, none of the homestead exemptions has anything to do with the type of conveyance. It does not matter whether you took title by warranty deed, quit claim deed or certificate of title after a successful bid at a foreclosure sale. If you live in Florida and your property is your primary residence, you can usually claim homestead.