Second Quarter 2022
THE IMPORTANCE OF HOMESTEAD PROPERTY AND CONFIRMING MARITAL STATUS What you need to know about the importance of these two critical questions. HOMESTEAD PROPERTY is property that is not
only owned but occupied by an individual. Only Florida residents can obtain a Florida homestead and receive the tax exemption benefit that comes with it.
SELLERS It’s very important to always confirm the marital status of your seller(s). If your vesting Deed shows Jim Smith and Judy Smith, husband and wife, you cannot assume they are still married. Confirming this is important because if they are now legally divorced (not separated), your closing agent will need to review the marital settlement agreement to confirm what the parties agreed to in the divorce. Conversely, if there is a single individual on the title and it indicates the marital status as “a single person”, you’ll want to confirm if they have since gotten married. If the property is homestead, the non-titled spouse must sign off on the Deed because under Article X, Section 4 of the Florida Constitution, the spouse is protected and cannot be forced to vacate the homestead property without signing off on the Deed. In this instance, the spouse doesn’t have to be on the listing agreement or contract as they are not on title, however, they do still have homestead rights - even if the spouse never lived there - and they must always sign off on the Deed. A couple of indicators (but not always) is if the tax bill shows there is a homestead exemption, and another indicator would be if the tax bill mailing address is the subject property.
BUYERS It’s important to know the buyer’s marital status especially when they are taking out a loan. If an individual buyer who is under contract says he is married and the property is going to be the homestead, their spouse must be on the mortgage and sign off on that. Likewise, if the buyer holds the title as trustee of their trust but it is going to be their homestead, their spouse must sign the mortgage. This is required under the statute to ensure the lender has a valid, foreclosable lien. If the spouse does not sign off, the lender would not be able to foreclose the loan and the title company could have a claim. If an individual buyer indicates he/she is married but the property is not going to be the homestead, the spouse would not have to sign off on the mortgage. In every case, whoever is going into title must always be on any new mortgage and sign off on the mortgage regardless of whether they are on the loan application or promissory note. This is intended for informational purposes only and should not be construed as legal opinion or advice. For more information about MSC Title or to discuss title options regarding a property, contact MSC Title at 941.552.5211 or visit michaelsaunders.com/msc-title/.
This newsletter is for informational purposes only and is not intended as legal advice nor opinion. For legal advice or opinion, seek the advice of a licensed attorney.
MSC Title, Inc | 40 North Osprey Avenue | Sarasota, FL 34236 | 941.552.5211