Hot Topics With Sandler Law Group – Texas Twists
What is homestead property in Texas? The short answer is it’s usually the borrower’s primary residence. To establish homestead a borrower needs both an intent to claim the property as homestead and some overt act (most frequently physical/actual occupation of the property).
There are two types of homestead in Texas, urban and rural homestead. Urban homestead refers to both urban and suburban and is limited to 10 acres. Rural homesteads can be up to 100 or 200 acres for a single person or for a family, respectively. An urban homestead is defined in the Texas Property Code §41.002. If a property does not meet the definition of urban homestead then it is rural homestead. A homestead is considered urban if it is (1) located within the limits of a municipality or its extraterritorial jurisdiction or a platted subdivision; and (2) is served by police protection, paid or volunteer fire protection, and at least three of the following services provided by a municipality or under contract to a municipality: (a) electric; (b) natural gas; (c) sewer; (d) storm sewer; and (e) water.