David owns a three-family home in Worcester, Massachusetts. He lives in one unit as his primary residence and rents out the other two units. He has recorded a Declaration of Homestead at the Registry of Deeds. A creditor obtains an unsecured judgment against David. Which statement best describes the homestead protection that applies?
Correct Answer
B) Homestead protection applies to the entire three-family property up to $500,000
Under MGL Chapter 188, a recorded Declaration of Homestead on a property where the owner occupies a unit as a primary residence protects up to $500,000 of equity in the entire property — including the multi-family structure — not just the owner's individual unit. Massachusetts case law and statute treat the homestead as attaching to the whole declared property.
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Related Topics & Key Terms
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Related Concepts
Price fixing is an illegal antitrust practice in which competing real estate brokerages agree to charge the same commission rates, fees, or other pricing for their services. It is a per se violation of the Sherman Antitrust Act.
Florida brokers are required to maintain transaction records and escrow records for a minimum of five years.
A tie-in arrangement is an illegal antitrust practice in which a seller conditions the purchase of one product or service on the buyer's agreement to purchase a separate product or service.
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