Liens & Encumbrances

Homestead Exemption

A legal protection that shields a portion of a homeowner's equity from certain creditors and reduces property tax liability.


Definition

A homestead exemption protects a homeowner's primary residence from forced sale by most creditors (excluding mortgage lenders and tax authorities). In New York, the homestead exemption amount varies by county — ranging from $75,000 to $150,000 of equity. The exemption does not apply to mortgage liens, mechanic's liens, or property tax liens. It is automatically available to homeowners; no filing is required. Some states also use homestead exemptions to reduce property tax assessments, though New York's STAR program serves this function instead.

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