California Real Estate Practice Exam 2026 – 400 Free Practice Questions to Pass the Exam

A homestead exemption provides certain protections to homeowners against creditors and financial claims on their primary residence. However, it is essential to understand that this protection does not shield the property from all types of claims. In particular, a homestead exemption does not offer protection against prior recorded liens such as mechanic's liens and real property taxes, which are generally considered to have precedence over the homestead exemption.

Mechanic's liens are specific to contractors or builders who have provided labor or materials for improvements on a property. If such a lien is filed before the homestead declaration, the property is not shielded from that claim due to the nature of lien priority in real estate.

Similarly, real property taxes are obligations that take precedence over homestead protections as they are necessary for local government operations and public services. The government has the right to place a tax lien on properties that do not satisfy their tax obligations, regardless of the homestead status.

In summary, while a homestead can protect homeowners against certain creditor claims, it does not provide a shield against mechanic's liens, prior recorded liens, or unpaid real property taxes, making it clear that those specific financial claims would still be enforceable even with a homestead declaration in place. This underscores the importance of understanding the