Florida homestead sale with judgement lien

Florida homestead sale with judgement lien

Member since 2018 · 5 posts · 1 vote

Hello,

I had a question regarding a judgment lien against a homestead property. From my understanding based on Florida statue 222.01(2) article 10, Section 4, creditors cannot have a lien against your primary residence. If a lien does get added to their primary residence, they can request to have it removed by court notice. I understand taxes, construction and mortgage liens do not get exempt from this protection. From what I have been researching any proceeds from the sale of the property can only be protected if and when those sale proceeds are to be used to purchase the next homestead property in a reasonable time. 

These are my questions: 

1) Can someone sell their homestead property that had liens from a creditor to a family member at a lesser then market value to cover their existing mortgage? If so, would those liens no longer apply to the new ownership?

2) If they own a second property, the liens would continue to be valid but only on the second property correct?

I appreciate any insight. Thank

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  • Specialist · Winter Springs, FL · Member since 2009 · 1k+ posts · 747 votes
    5y

    This is not legal advice but is based on my experience doing title insurance claims for awhile.  Homestead property is exempt from forced sale, see Article X, Section 4 of the Florida Constitution, except for the exceptions listed in the Article.  Therefore judgments against the owner do not attach to the real property and the property can be sold and insured by a title underwriter without exception for them.  Underwriters generally rely on an affidavit from the Seller that the property is his/her/their homestead though if the title search indicates the property may not be homestead they may make additional requirements.  For example, if the county property assessor does not show a homestead exemption for the property they will probably ask for additional information.  Likewise, if the mailing address for the owner shown by the assessor is different than the property address again the underwriter will probably have questions.  I hope this helps.

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