An owner sells a Texas homestead on 5 March 2026 and holds the $180,000 net proceeds in a bank account. For how long are the identifiable homestead sale proceeds protected from ordinary creditor seizure?
Correct Answer
D) The proceeds are exempt from seizure for 6 months after the sale
A homestead claimant proceeds of sale are not subject to seizure for a creditor claim for six months after the date of sale, which gives the seller time to buy another homestead. Other choices: 12 months overstates the window; the protection plainly survives the closing; and no reinvestment inside 30 days is required for the exemption to run. Source: Tex. Prop. Code sec. 41.001(c)
Why This Is the Correct Answer
A homestead claimant proceeds of sale are not subject to seizure for a creditor claim for six months after the date of sale, which gives the seller time to buy another homestead. Other choices: 12 months overstates the window; the protection plainly survives the closing; and no reinvestment inside 30 days is required for the exemption to run. Source: Tex. Prop. Code sec. 41.001(c)
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