Selling Your Homestead & Protecting The Proceeds
Homestead in Florida gives some great benefits to Florida resident homeowners. So, congratulations are in order, your family and home are now protected. You’ve paid the mortgage, your taxes, your contractor, the plumber, and the pool boy. But with the prices of real estate as low as it is, you decide to upgrade to a nicer home in a better neighborhood. What do you do to protect your investment in the homestead?
There are some important things to keep in mind when re-investing the proceeds from one homestead property into another. This is commonly referred to as “sheltering” the homestead proceeds. To accomplish this you must show an “abiding good-faith intention” prior to and during the sale of the homestead to reinvest the money in another homestead property within a reasonable time. Only the proceeds of the sale that are intended to be reinvested in another homestead may be exempt. Any extra funds above that amount will not be protected from creditors. One of the biggest mistakes that home buyers make is that they commingle the funds or start spending the money for general purposes. DO NOT commingle the exempt-homestead funds with any other monies. You must make sure to keep it separate and distinct while having that all important “intent” that the money is being held for the sole purpose of acquiring a new home.
The Homestead laws in Florida are cumbersome, complex and difficult to navigate. This article is intended to give you a general understanding of the basics regarding Florida’s Homestead laws. If you have a Homestead issue and would like to speak with an attorney, email my firm at GuirguisLaw@gmail.com.
THE INFORMATION PROVIDED IN THIS ARTICLE IS NOT A SUBSTITUTE FOR LEGAL ADVICE, NOR DOES IT CREATE AN ATTORNEY-CLIENT RELATIONSHIP BETWEEN THE READER AND THE AUTHOR. THE INFORMATION PROVIDED IS GENERAL IN NATURE AND NOT TAILORED FOR ANY SPECIFIC CIRCUMSTANCE.
Posted on April 18, 2012, in Legal and tagged Attorney, Buy a Home, Florida Constitution, Homestead, Lawyer, Legal Schmegal, SWFL Real Estate, The Guirguis Law Firm, Vernon Guirguis. Bookmark the permalink. Leave a comment.