Patricia owns a home in Lowell, Massachusetts as her primary residence and has recorded a Declaration of Homestead at the Middlesex County Registry of Deeds. A contractor who performed renovation work on her home obtains a judgment against her for $450,000 in unpaid fees. Under MGL Chapter 188, how much of Patricia's home equity is protected from this judgment?
Correct Answer
A) $500,000, because Patricia recorded a Declaration of Homestead entitling her to the maximum declared homestead protection
Under MGL Chapter 188, recording a Declaration of Homestead at the Registry of Deeds provides protection of up to $500,000 of equity in the owner's primary residence from unsecured creditor claims. Because Patricia has properly recorded her Declaration of Homestead, she is entitled to the full $500,000 protection. A contractor's judgment for unpaid services is generally an unsecured claim (unless a mechanic's lien was properly perfected), so Patricia's $500,000 homestead protection would shield up to that amount of her equity.
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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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