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.
