Texas Homestead Exemption

If you purchased your home last year, don’t forget to apply for your Homestead Exemption.  It will save you money by removing part of your home’s value from taxation.  To qualify, you must own your home as of January 1 and you must use your home as your primary residence as of January 1.

A state law that took effect on September 1, 2011 has changed proof of residency requirements for homeowners applying for the property tax homestead exemption.  A home buyer must update their address on their driver’s license, and with the tax assessor/collector in their area in order to be able to provide the required documentation for the homestead exemption.

Homestead Exemption 2012 Requirements

Your Homestead Exemption will NOT be allowed unless all the required documents show the same homestead address. ALL THREE DOCUMENTS MUST HAVE THE SAME ADDRESS.

• APPLICATION FOR RESIDENTIAL HOMESTEAD EXEMPTION
• Copy of DRIVER’S LICENSE or IDENTIFICATION CARD from the Texas Department of Public Safety and the address MUST MATCH the homestead address.
• Copy of Vehicle Registration Receipt. The address MUST MATCH the homestead address. Once the change of address is processed by the tax collector’s office, homeowners can get a copy of their registration receipt either from the tax office or from the department of motor vehicles.
• If you do not own a vehicle, you must complete the Non-Ownership of Motor Vehicle Adavit (found on the Application for Residential Homestead Exemption), sign it before a Notary Public, and attach a copy of a utility bill showing the homestead address.

Homestead Exemption Form for Travis County

Homestead Exemption Form for Williamson County

Homestead Exemption Form for Harris County

You can also visit the Texas Comptroller’s website for more information and frequently asked questions regarding all homestead exemptions.

Common Real Estate Terms

Appraisal – An expert judgement or estimate of the quality or value of real estate as of a given date.

Assessed Value – The value placed on property for tax purposes.  It does not necessarily reflect the fair market value.

Competitive Market Analysis - A method of valuing property using a study of recently sold comparable properties.

Contract – A legally enforceable agreement to do a particular thing, including the buying and selling of a home.

Deed – A formal, written document that when executed, delivered and recorded conveys title of real property.

Earnest Money – The money set aside for the seller by a potential buyer upon the signing of an agreement of sale to show that the buyer is serious about purchasing the property.  Also known as a deposit.

Equity – The money realized when a property is sold and all the claims against it are paid.  The amount is usually the sales price minus the present mortgage balance.

Escrow – Funds given to a third party to be held pending some occurrence.

Mortgage – A lien or claim against real property given by the buyer to the lender as security for money borrowed.

PITI – An abbreviation for Principal, Interest, Taxes and Insurance.  It is often lumped together in a monthly mortgage payment.

Point – One percent of the loan amount paid in a one-time lump sum to the lender.

Survey - A map made by a licensed surveyor who measures the land and charts its boundaries, improvements and relationship to the property surrounding it.

Title – The document that indicates rights of ownership, control and possession of property.

 

New Rules for Texas Homestead Exemptions

New rules for Homestead Exemptions could effect you if you are a first-time home buyer, one who has moved, or have become eligible for a different type of homestead exemption – such as turning 65 or becoming disabled.

Beginning last week, applicants for new or different exemptions must provide a copy of their Texas driver’s license or state-issued identification card AND a copy of their vehicle registration receipt. The addresses on those documents must match the address of the home on which the exemption is being sought. Current rules called for an application but required no documentation.

For individuals without vehicles must submit a notarized affidavit certifying that and must present a copy of a current utility bill with the same address. Those with existing homestead exemptions will see their tax discounts renewed automatically.