A low-cost registry filing can significantly increase the legal protection attached to a Massachusetts home.
By filing a Declaration of Homestead, homeowners can protect up to $1 million in equity from certain creditors, compared with the $125,000 automatic protection that applies if no declaration is recorded.
Here's what to know
When someone buys a primary residence in the Bay State, the closing attorney is expected to notify the buyer about the right to claim homestead protection, the Lowell Sun reported.
At the Middlesex North Registry of Deeds, the form costs $35, and homeowners can file it online or in person.
Under Massachusetts law, the declaration can shield as much as $1 million in a family home from certain creditor actions, though it does not eliminate mortgage payments; federal, state, or local tax obligations; or debts that existed before the filing, per the newspaper.
There is also a stronger option for some owners. People 62 and older, along with owners who are disabled, may qualify for an Elderly Declaration of Homestead that provides up to $1 million for each eligible person.
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More background
Real estate fraud has become a growing concern. CertifID estimates roughly 1 in 4 consumers are targeted by fraud in a real estate deal, the Sun reported.
A 2022 FBI report said real estate fraud had quadrupled over the prior four years. Compromised emails affected 2,284 victims in 2022, leading to $446 million in losses, and complaints rose 10% in 2023.
Court documents say the owners of a 1.8-acre vacant lot in Concord discovered in August 2024 that the property had been sold without their knowledge and the land cleared. A house was in the process of being built.
In July, Kyon James of Middleboro; Moshe Levi of Carrollton, Texas; and Bradley Beague of Somerset, New Jersey, were arrested on related charges that also featured properties in Georgia, Indiana, and Tennessee.
What can be done?
Homeowners can start by checking whether a Declaration of Homestead has been recorded for their primary residence. If there is no filing on record, submitting one to the Registry of Deeds could increase the amount of equity protected under state law.
Older and disabled homeowners may also be eligible for the enhanced option. The Sun directed readers to Mass.gov's Massachusetts Law About Homestead guide, which includes filing details and legal references.
Another layer of protection is registry alerts. The Middlesex North Registry of Deeds offers a free email notification tool that sends alerts when records are filed under an owner's name or property address, and users can register up to three properties.
If a filing appears fraudulent, homeowners can contact their local registry of deeds and report the issue to law enforcement. While these tools cannot fully prevent scams, they may help people catch suspicious activity.
Even with legal protections in place, title fraud can still be devastating.
"They stole our dream," co-owner Omar Jaraki said of the Concord property, according to the Sun.
Where can I learn more?
Title fraud and creditor claims are not the only financial or legal challenges property owners encounter. Issues surrounding investor acquisitions, homeowners association conflicts, and property liens can also impact residential security.
• One family faced an HOA threatening a lien that could put their home at risk.
• Another owner was told to engage an attorney over an HOA's home-addition ban.
• In Michigan, lawmakers targeted big investors buying homes.
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