Nevada Homestead Laws

The Nevada homestead exemption protects homes and other primary residences from forced sale in the event of bankruptcy or other collection actions. The purpose of a homestead exemption is to keep homeowners in serious financial difficulties from losing their home equity when they try to clear their debts and start over.

Nevada’s homestead laws will not protect homeowners from foreclosure or some types of tax liens, but they will prevent seizure to pay general creditor claims up to the state limit. This article reviews your protection and what you need to do to ensure your home is covered by Nevada state law.

What the Nevada Homestead Law Protects

The Nevada Homestead Exemption is part of the state constitution. The state constitution prohibits forced sale except for liens that both spouses agreed upon. The constitution also allows sales for mortgages, taxes, and other “process of law.”

The Nevada homestead law (NRS § 115.010) specifies that the exemption covers up to $605,000 of property equity. If you file for bankruptcy, the first $605,000 of your home’s value is protected from creditors. If your equity exceeds that cap, creditors may seize the excess.

How the Homestead Law Works

Nevada requires homeowners to file a Declaration of Homestead to obtain the homestead exemption. You must complete a homestead declaration form in the county where the property is located. You’ll need the property’s legal description and parcel number, which you can find on the deed or through the county assessor’s office.

You’ll file the Declaration at the County Recorder’s Office. There is a fee for recording the document, which ranges from $14 to $43 depending on the county. The property must be your primary residence, and may include:

• Single-family homes, including the land and “appurtenances” (buildings and fixtures)
• Individual condominium units
• Mobile homes, regardless of whether you own or lease the space they sit on

The exemption does not cover rental or vacation homes or business properties. The homestead protection only applies to land with your own primary dwelling on it.

What the Homestead Exemption Covers (and Does Not Cover)

The Nevada Homestead Exemption protects equity in your home from general creditor claims. If you must file for bankruptcy to clear unsecured debt so you can continue paying your mortgage and other secured debts, the homestead exemption protects your home equity, allowing you to keep your principal residence.

The exemption prevents creditor claims for things like medical bills, credit card debts, personal loans, and similar unsecured debts. The exemption will not prevent creditor claims for:

• Mortgages or debts secured by a deed of trust (Bankruptcy will not prevent foreclosure)
• Tax debt or IRS liens
• Mechanic’s liens, including contractor liens
• Child support or alimony arrearages

The Homestead Exemption can’t help unless you’ve filed the Declaration. There’s no shame in meeting with a Nevada real estate lawyer if you have questions or require assistance.

What Is an Allodial Title?

Nevada has an unusual carve-out for “allodial title” in its homestead exemption. Prohibited by the Nevada legislature in 2005, allodial title was reserved for homeowners who had completely cleared their title of all liens and had paid a presumed lifetime property tax. It meant that the property owner owned the land independent of any superior landholder or government title. This concept no longer exists, but a few older landowners in Nevada still have allodial title for their lifetimes.

Get Legal Advice From a Nevada Real Estate Attorney

Nevada property owners must record a Declaration of Homestead to obtain the benefits of the Nevada Homestead Exemption. If you are unsure how or where to do this, or need any other legal advice about your property, contact a Nevada real estate attorney for help.