True. A residence may be claimed as a homestead prior to actually living on the property. Homestead rights commence when a person obtains the right to possess the land, uses it as a homestead and intends to claim it as a home. Usage, not occupancy, is required (publication 525).
True. Texas allows a lifetime homestead for the surviving spouse (publication 701).
False. Proceeds from the sale of a homestead retain homestead protection for six months. If the funds are reinvested in another homestead during this period, neither the funds nor the new homestead may be seized by creditors.
True. A lender can claim a valid lien against a Texas homestead if the loan is to refinance a federal income tax lien. Texas law permits five valid liens against the homestead for: all or part of the purchase price; property taxes levied against the property; work and material used for improvements; an owelty arising from a partitioning or divorce; and refinancing a federal tax lien.
True. Changing the Texas homestead laws requires amending the Texas Constitution. Actions by the Texas legislature to alter the law merely enable Texans to vote on the proposed changes via a constitutional amendment.
False. Texas homesteads can be taken in condemnation actions. The proceeds are protected for a reasonable period to reinvest (reasonable is not defined by these rules).
False. Failure to request a property tax exemption does not alter the protection afforded by homestead laws. It merely results in a potentially greater property tax burden. Homestead rights can not be waived because they are constitutionally vested (publication 857).
True. A Texas homestead can be claimed in a federal bankruptcy filing (publication 953).
False. Assessments are charges levied against property by state or local authorities to fund improvements benefiting the land. Because assessments are not taxes, assessment liens do not attach to homestead property (publication 1110).
| Average Scores |
Number
Correct | Percent of
Respondents |
| 11 |
1.0 |
| 10 |
3.5 |
| 9 |
9.1 |
| 8 |
17.5 |
| 7 |
20.8 |
| 6 |
19.1 |
| 5 |
13.2 |
| 4 |
7.2 |
| 3 |
2.8 |
| 2 |
1.6 |
| 1 |
1.2 |
| 0 |
3.0 |
Nine or more correct answers ranks in the top 15 percent. Lower scores are typical. Not all Texas real estate licensees understand the nuances and details of the homestead laws.
As a side note, the survey shows that the greater the understanding of Texas homestead laws, the less change is desired (such as allowing home equity lines of credit for medical benefits or education). Prior to completing this quiz, respondents were asked to grade themselves on their understanding of homestead laws. A high correlation exists between their perceived grasp of these rules and their performance on the quiz.
The respondents’ geographic location has no bearing on their knowledge of the subject. No significant difference was shown between urban versus rural or large versus small city respondents in perceived knowledge, actual quiz scores or attitude to keep, delete or alter Texas homestead laws.
Texas homestead law will continue to be debated. Only a constitutional vote can implement change.
Emotions are not likely to subside, regardless of the position held. What is clear, however, is that even Texas real estate professionals have a less than perfect understanding of the benefits and restrictions of Texas homestead laws.
