FLORIDA HOMESTEAD &
"SAVE OUR HOMES" AMENDMENT

By Christine Sutherland, Realtor®

Please contact a Florida Licensed Attorney for more details and all legal requirements and information.

HOMESTEAD A constitutional homestead is available to all resident homeowners in Florida, and there is no dollar limitation on homesteaded property: the multimillion dollar home is covered as well as the $200,000 condominium. The Florida homestead laws are especially meaningful in the following three areas:
1. Descent of the homestead. When the owner of a homesteaded property dies, the children inherit the homestead with the surviving spouse receiving a life estate in the homestead. If there are no children then the remaining spouse receives a fee simple estate in the homestead. In 1992 the Florida Legislature modified the homestead law to make it clear that title to real property held in a revocable living trust remains homestead as if it would have been homestead the owner's name alone.	The 1886 Florida Homestead Amendment

2. Protection against creditors.
In Florida, if a person's real property qualifies as his/her homestead, it is generally exempt from a forced sale by his/'her creditors both during his/her lifetime and after his/her death. The exception are forced sales for not paying taxes.

3. Real estate taxes.
If an owner's home qualifies, he will receive a $25,000 homestead exemption on the assessed value of his home. In order to qualify for the exemption, the owner must possess the property as of January 1, live there, and be a permanent resident of the State of Florida.

SAVE OUR HOMES
The greatest financial advantage to residents in the more affluent areas of Florida, like the Southwest, is the "Save our Homes" amendment of the Florida Constitution. This caps how much the assessed value of a homestead can be increased in a given year, either 3% (based on the assessed value of the prior year) or the percentage change of the Consumer Price Index (CPI) for the preceding year, whatever is the smaller.

SELLING A HOMESTEAD
If a homesteaded property is sold, the property taxes can go up quite dramatically (particularly if the owner has lived in the homestead since 1992), as the property will be assessed at the just value, without any exemptions, as of January 1st of the year following the sale. The new owners can then apply for a homestead, but starting at the new, higher property assessment and taxes.

FILING FOR HOMESTEAD

Owners have to file applications for a new homestead exemption with the county property appraiser's office during the months of January and February, on or before March 1 of each year. In the following years, a homestead receipt will be sent to the owner on an annual basis, indicating automatic renewal. Acceptance of the receipt implies that the owner continues to use the property as his permanent residence, that the property is not being rented, and that he is a Florida resident.

It is the duty of the owner who has received a homestead exemption to notify the property appraiser promptly whenever the use of the property changes (other than a sale of the property). Any owner who fails to notify the property appraiser is subject to penalties.

The usual procedure is to appear personally at the county property appraiser's office and apply for the exemption. The tax assessor will require a copy of the deed or a tax bill showing the property description, a Florida driver's license and Florida voter registration or declaration of domicile dated prior to January 1.

In addition to the homestead exemption, there is a $500 widow and widower's exemption, and an $500 disability exemption for every Florida resident who is totally or permanently disabled.Also, every Florida resident who is legally blind qualifies for a $500 exemption. In total, a Florida resident owner can receive an exemption of $26,500 off the assessed value of his homestead.

CAUTION: Before making any changes that may affect an owner's Florida homestead, an owner should review the matter with his attorney, taking into account the most recent laws, regulations and cases.