Nevada Homestead Exemption

Nevada has a very generous $550,000.00 Homestead Exemption. As set forth in NRS 115, it is purely statutory, meaning that the homestead law is created by statute and cannot be modified by a court or an administrative act. It’s here to stay! The Nevada homestead law protects your home from foreclosure by any general civil creditor, such as medical bills, credit card debt, business and personal loans, liabilities arising from a car accident, and even a bankruptcy filing. That means that if you are sued for any liability listed above, the creditor can lien your home, but cannot foreclose on it, provided the Homestead Exemption has been recorded in the County in which your primary residence is located. The policy behind this law is to protect Nevada residents from losing their home in the event of some unforeseen catastrophe. As the Homestead Exemption applies only to the primary residence, remember that second homes will not be covered.

How to Record Declaration of Homestead

• Complete the Homestead Declaration form.  The form must be printed legibly in black ink.  Text cannot extend beyond the one-inch margins on all sides of the form.
  
• Sign in the presence of a Notary Public.
  
• Take the completed document to Clark County Recorder
  
• The recording fee is $40.00. You will not be required to file another Homestead Declaration in the event you transfer your title to a trust created for yourself.
  

The completed Homestead Declaration can also be mailed to the Recorder's main office. The Recorder's Office is unable to accept mailed documents for recording at the Satellite Offices.

What the Law Provides

When you record a Declaration of Homestead, Nevada law protects the equity in your home up to $550,000 from general creditor claims (unpaid medical bills, bankruptcy, charge card debts, business/personal loans, accidents) but would not preclude a seizure or forced sale of your residence from general creditors if your equity exceeds the $550,000.  A creditor may file suit and can record a judgment lien against any real property you own.  Recording a Declaration of Homestead protects your principal residence up to the statutory maximum.  For example, if the value of your home is $645,000 and you have a first mortgage of $485,000 plus a second mortgage of $10,000, the equity is $150,000.

What the Law Does NOT Protected

The Homestead law does not protect you against debts secured by a mortgage or deed of trust, payment of taxes, IRS lien, mechanic's lien, child support or alimony payments.