Understanding the Nevada Homestead Law

What is a Nevada Homestead?

A Nevada Homestead, governed by Chapter 115 of the Nevada Revised Statutes (NRS 115), is a legal protection that homeowners can claim by filing a Declaration of Homestead with the Clark County Recorder’s Office. This declaration safeguards a portion of your home’s equity from certain creditor claims, helping to secure your primary residence.

Why is a Homestead Important?

The Homestead Law is a critical tool for Nevada homeowners, offering financial protection against unexpected creditor claims that could threaten your home. By filing a Declaration of Homestead, you can shield up to $605,000 of your home’s equity, providing peace of mind and stability for you and your family. It’s a proactive step to protect one of your most valuable assets.

What Does the Homestead Protect?

The Homestead Law protects up to $605,000 of your home’s equity from general creditor claims, including:

• Unpaid medical bills
• Credit card debts
• Business or personal loans
• Claims arising from accidents
• Bankruptcy proceedings

Example of Protection: Suppose your home is valued at $700,000, with a first mortgage of $450,000 and a second mortgage of $50,000. Your equity is $200,000 ($700,000 - $500,000). If a creditor attempts to collect on an unpaid medical bill, the Homestead Declaration ensures that your $200,000 in equity is fully protected, preventing the forced sale of your home to satisfy the debt.

What Does the Homestead Not Protect?

The Homestead Law does not shield your home from certain types of debts, including:

• Mortgages or deeds of trust
• Property taxes or IRS liens
• Mechanic’s liens
• Child support or alimony obligations

Example of Non-Protection: If you owe $50,000 in back taxes to the IRS, the Homestead Declaration will not prevent the IRS from placing a lien on your home or pursuing its sale to recover the debt. The Homestead Law does not apply to tax-related obligations, leaving your home vulnerable to such claims.

Take Action Today

Filing a Declaration of Homestead is a straightforward and effective way to protect your home’s equity. Contact us to assist you in completing the Declaration and filing it. We will ensure it’s properly completed and notarized, and submit it to the Clark County Recorder’s Office. 

Safeguard your home with Nevada’s Homestead Law today.