A homeowner in Conway, Arkansas, owns her primary residence within the city limits. She has substantial credit card debt, and a creditor obtains a judgment against her. The home is valued at $450,000 and sits on a 0.15-acre lot. Which of the following statements is most accurate regarding the Arkansas homestead exemption?
Correct Answer
B) The homestead exemption fully protects the home because it is within the urban acreage limit and the constitution places no cap on the home's value
The Arkansas Constitution, Article 9, §§ 3–6, provides a homestead exemption based on acreage, not on the dollar value of the property. For urban properties within city limits, the exemption protects up to 1/4 acre. The homeowner's lot is 0.15 acres, which is within the urban limit. Critically, the Arkansas constitutional homestead exemption places no cap on the value of the protected homestead — a $450,000 home is just as fully protected as a $100,000 home, as long as the acreage limit is not exceeded.
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Related Topics & Key Terms
Key Terms:
Related Concepts
In a cooperative (co-op), the building is owned by a corporation, and residents purchase shares of stock in the corporation that entitle them to a proprietary lease on a specific unit. Residents are shareholders, not property owners.
Fee simple absolute is the highest and most complete form of property ownership, giving the owner unrestricted rights to use, possess, enjoy, and dispose of the property. It is of unlimited duration and fully inheritable.
Community property is a system where property acquired during a marriage is owned equally by both spouses.
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