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Texas Homestead By Christy Treviño: Introduction

Texas Property Tax Law

Overview of Homestead in Texas

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Homestead law in Texas is a special protection given to the home of a family or single adult from owner's creditors, the right of occupancy, given to a surviving spouse, minor children, and unmarried children of deceased owners, and favorable tax treatment accorded to the owner. State homestead protection laws help prevent people from becoming homeless in the event of a foreclosure or change in economic circumstances. In Texas, every family and every single adult person is entitled to a homestead exempt from seizure passed on the claims of creditors, except for a pre-existing mortgage or lien. Texas homestead law protects qualifying real property from forced sale by general creditors, and courts have interpreted the laws broadly to help accomplish their goals.

History of Texas

To give some context about the how homestead came to be I will briefly discuss the history of Texas. 

Long before the Spanish exploration, the land that is now known as Texas, was inhabited by Native Americans. Around 1528 was when the first Europeans entered Texas. By 1730 the Spanish had sent several expeditions into Texas. Most notably, the Alamo, located in San Antonio was the  main military post and center. There were several conflicts between the Spanish and French in the area. Eventually Mexico gained independence from Spain in 1810. In 1836 the Battle of the Alamo occurred, where Texans were able to succeed from Mexican rule. The interesting and unique history of Texas is that Anglos and Mexicans joined together to revolt against the Mexican rule. The Republic of Texas had a 10 year life, that was difficult financially and suffered several raids from Mexicans and Native Americans. In 1845, the annexation of Texas was approved by the Texas government and the U.S. Congress. The authority of the Republic shifted in 1846. In the annexation agreements there was a provision that permitted Texas to retain title to its public lands. During 1847 and 1848 the Mexican-American War broke out over the area between the Rio Grand and the Nueces River. The Treaty of Guadalupe Hildago, signed February 2, 1848 is when Mexico gave up its claim to Texas and surrounding areas. In 1861, when the American Civil War broke out, Texas seceded from the Union after a strong opposition from Governor Sam Houston to join the Confederacy. During the Civil War, Texans had to defend themselves from Native Americans and Mexicans. During the beginning of the 19th century, Texas saw large developments in population and economy. In 1870 Texas was readmitted into the Union under a new Constitution. In 1901, oil opened a new economic era for Texas. Texas has played an important role in our nations politics and continues to be a state full of culture and rich history. As you can see, Texas has a unique history and it is important to remember that Texas History is not one side but has several angles, in which you should consider when studying or reading on Texas history. Such as, the experience of the Tejanos, Mexicans, Native Americans, African Americans, Spanish, and Anglo settlers. I end with that because as a Native Texan/Tejana with ancestry mostly of Native American, Mexican, and Spanish, it is imperative that we consider history from all angles. 

 

 

Video below briefly covers Texas History

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History of Homestead

Many Americans who settled in Texas in the early nineteenth century were pursued by their creditors, and for their protection Stephen F. Austin recommended a moratorium on the collection of the colonists' foreign debts. In response to that recommendation the legislature of Coahuila and Texas enacted Decree No. 70 of 1829 to exempt from creditors' claims lands received from the sovereign as well as certain movable property. Although that act was repealed in 1831, the principle remained in alive in Texans' minds and was a model for the Texas act of 1839, which protected the home of a family from seizure by a creditor. This was the first act of this sort, and the principle of homestead exemption is therefore deemed Texas's particular contribution to jurisprudence. The homestead principle was embodied in the Constitution of 1845 and all constitutions thereafter. Under the Constitution of 1876 the homestead was defined as the family home on up to 200 acres of rural land or urban land worth up to $5,000 (at the time of homestead designation) with its improvements and used as a family home or place of business. In 1970 the maximum value of the urban land was raised to $10,000. In 1983 the urban homestead was redefined as a maximum of one acre. The legislature has defined the homestead in terms of the maximum amount allowed by the Constitution with the exception of the rural homestead for a single adult, which is limited to 100 acres. In 1973 a homestead was made available to single adults. The Constitution also provides that the homestead cannot be encumbered by a lien except for its purchase price, cost of improvements thereon, or taxes assessed against the property. A Texas homestead is not, however, secure from seizure for a debt owed to the federal government. An encumbrance existing on land prior to its dedication as a homestead is also enforceable. Designation of a homestead is achieved by actual use and no recorded claim to the right is required. Either separate or community property may constitute a homestead. A homestead owner's spouse must join in any transfer or encumbrance of a homestead, and neither spouse can effect an abandonment of the homestead without the consent of the other. In addition to the reduction of taxes made for all homesteads, the Texas Constitution authorizes local governmental units to give further reductions for the aged and disabled. A surviving spouse is entitled to the sole occupancy of a homestead for life, though the owner may have devised ownership rights in the property to someone else.

William H. Nunn, A Study of the Texas Homestead and Other Exemptions (Austin: Baldwin, 1931).

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