A property in rural Benton County, Arkansas is owned by the Henderson family as their primary residence. The property sits on 60 acres. A creditor has obtained a judgment against Mr. Henderson and seeks to force a sale of the property. Under the Arkansas homestead exemption, which statement is correct?
Correct Answer
D) The entire 60-acre property is protected because the rural homestead exemption covers up to 80 acres in Arkansas
Under the Arkansas Constitution, Article 9, §§ 3-6, the rural homestead exemption protects up to 80 acres used as a primary residence from most creditor claims. Since the Henderson property is 60 acres — which is less than the 80-acre rural limit — the entire 60-acre homestead is protected from the creditor's judgment. The value of the rural homestead is not capped under the constitutional protection.
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In the context of foreclosure, a deed transfers ownership of the foreclosed property to the new owner, typically the buyer at a foreclosure sale.
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