Exemption of Homestead Proceeds Invested In A Brokerage Account

The concept of an exempt “homestead account” is a well-settled legal concept in Florida. It holds that proceeds from the sale of a homestead remain exempt after deposit in a bank account for a reasonable time while the owner is searching for a new homestead. Most people concerned with protecting homestead sales proceeds keep the…

Non-Debtor Spouse’s Independent Right To Assert Homestead Exemption Against Debtor’s Spouse’s Creditors

One of my married clients purchased a Florida homestead in his own name, and then he transferred the house to his LLC. A creditor obtained a judgment against the client, but the creditor did not seek a judgment against the wife. He asked me for my opinion about whether the creditor could levy on his…

Florida’s Constitutional Homestead Clause Does Not Prevent Partition Among Co-Owners

  A client lives in a Florida homestead which se owns jointly with a former girlfriend who has since moved to New York. Ownership on the deed is 2/3 to my client and 1/3 to his ex-girlfriend as tenants in common. My client has been paying the mortgage and taxes for several years since his…

Differences Between HOA Liens and Condo Association Liens on Homestead Property

A reader sent me a question about liens on homestead properties in favor of condominium associations compared to liens in favor of homeowner associations in a single family house community. Condo associations and HOAs can place a lien on a homestead for non-payment of dues or unpaid assessments. The reader had read somewhere that these…

Bankruptcy Law Treatment of Homestead Purchased in Debtor’s Living Trust

One of my clients had purchased a Florida homestead for all cash about five years ago, and he was now contemplating filing Chapter 7 bankruptcy. He asked me whether it made a difference that he took title to his homestead in a revocable living trust instead of his own name. The client was concerned about…

Homestead Benefits Under Condominium Termination Statute

A client wanted to know if his condominium qualified as Florida homestead in an action to terminate a condominium association. Under a  Florida condominium statute an owner who resides in a condo unit as his homestead has rights to increased compensation. My client does not reside in the condo unit, nor does he reside in…

Foreclosure of Equitable Lien on Florida Homestead

The Florida Supreme Court established in the Havoco case that  equitable liens are  an exemption from Florida’s homestead protection. A judgment creditor may be entitled to an equitable lien on the homestead for the amount of money obtained by fraud or other egregious actions a judgment and subsequently used to purchase or improve a homestead….

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Converting Florida Homestead To Income Producing Rental Property

One of my clients owned a Florida homestead which he wants to convert to a rental property. He plans to himself rent a smaller home and live on net rental income from the former homestead. He suggested to me transferring the homestead to an LLC that he would own with his brother whom he trusts…