How the Homestead Exemption Works
Under A.R.S. 33-1101, the homestead exemption applies to a person's primary residence automatically. No filing or declaration is needed. The protection covers equity up to a dollar limit set by law. A creditor with a judgment generally cannot force a sale unless equity exceeds the exemption plus prior liens.
Certain debts override the exemption. These include mortgages, mechanics' liens, and child support arrearages. These creditors can still enforce claims against the property.
Homestead Exemption vs. Homestead Allowance
These terms are often confused. The homestead exemption (Title 33) protects a living homeowner's residence from creditors. The homestead allowance (A.R.S. 14-2402) is different. It is a $18,000 fixed payment from a deceased person's estate. It goes to the surviving spouse or dependent children. They serve different purposes at different points in time.