Sandra owns a 1/2-acre lot within the city limits of Fayetteville, Arkansas, where she has lived for ten years. A judgment creditor seeks to force a sale of the property to satisfy a $40,000 unsecured debt. Sandra claims the homestead exemption. Which of the following most accurately describes the legal outcome under Arkansas law?
Correct Answer
B) Only 1/4 acre of the lot is protected by the homestead exemption; the creditor may reach the remaining 1/4 acre.
Under Ark. Const. Art. 9, §§ 3–6, the urban homestead exemption is limited to 1/4 acre. When a property exceeds the applicable acreage limit, only the portion up to the limit is protected. Sandra's 1/2-acre lot is within city limits, so 1/4 acre is shielded from the creditor, but the remaining 1/4 acre is not protected and may be subject to the creditor's claim.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Broker supervision is the legal obligation of a designated or managing broker to oversee and be accountable for the real estate activities of all salespersons and associate brokers operating under their license.
Commingling is the illegal act of mixing client funds with a broker's personal or business operating funds, while conversion is the unauthorized use of client funds for the broker's own benefit. Both are serious violations that can result in license revocation.
Commingling is the illegal act of mixing client trust funds with a broker's personal or business operating funds; conversion is the misappropriation of those funds.
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