Homestead Ownership During Construction
The only way a property under construction can qualify for the homestead exemption is to live on the property during construction.
Homestead protection is not effective until a property is occupied. Houses under construction are not protected.
If a judgment is entered against a debtor prior to occupancy and homestead protection, the judgment will attach to the property under construction. Once a judgment attaches to the building lot, the lot cannot be protected as homestead property by subsequent occupancy.
One strategy is to build the lot in an LLC. Once the home is complete, the LLC can transfer the property to the homeowner so long as the homeowner already lives there. That prevents an automatic lien.
About the Author
Jon Alper is a nationally recognized authority on offshore trusts and asset protection. With more than fifty years of legal experience, he concentrates on structuring Cook Islands trusts, Nevis LLCs, and Florida-based protection strategies.
A Harvard University master’s graduate and an honors alumnus of the University of Florida College of Law, Jon has advised thousands of physicians, business owners, and families on safeguarding wealth. He is known for developing legal structures that are practical, cost-effective, and effective in high-stakes litigation environments.
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