Texas Homestead Protection: What McKinney & Southlake Homeowners Need to Know

Nov 26

4 min read

Owning a home isn’t just about having a roof over your head—it’s about stability, financial security, and building a legacy. Texas understands this deeply, which is why our state offers some of the strongest homestead protections in the country.

For homeowners in McKinney, Texas and Southlake, Texas, understanding these protections is essential to safeguarding your most valuable asset: your home.

This guide breaks down what Texas homestead protection really means, how it works, and how you can make sure your home is fully protected.

What Is the Texas Homestead Law?

Texas homestead law protects a homeowner’s primary residence from most creditors. These protections come directly from the Texas Constitution and the Texas Property Code, and they apply to:

Single-family homes
Townhomes
Condominiums
Manufactured and mobile homes (if used as the principal residence)

Your homestead must be your primary residence, but once established, it becomes extremely difficult for most creditors to force a sale to satisfy debts.

Exceptions

Certain debts can still attach to and force the sale of a homestead, including:

Property taxes
Mortgage liens / home equity loans
Home improvement liens
HOA liens (in some circumstances)

But outside of these categories, the home is protected—even in a lawsuit or financial hardship.

How Homestead Protection Works in McKinney & Southlake

To receive full homestead protection in Texas, homeowners must file a Residence Homestead Exemption with their local county appraisal district:

✔ McKinney Homeowners

File with: Collin Central Appraisal District (CCAD)

✔ Southlake Homeowners

Depending on where the property sits:

Tarrant Appraisal District (TAD) – most Southlake properties
Denton Central Appraisal District (DCAD) – northern Southlake areas

Filing the homestead exemption does two things:

Triggers constitutional homestead protections
Reduces your property taxes through the Residence Homestead Exemption

Both counties allow filing online and require a Texas driver's license that matches the home’s address.

Acreage Limits (Verified under Texas Property Code § 41.002):

Urban homestead: Up to 10 acres (common in McKinney & Southlake)
Rural homestead: Up to 200 acres for a family, or 100 acres for a single adult

McKinney and Southlake are both considered urban areas, so most homes fall under the 10-acre limit.

Benefits of Texas Homestead Protection

1. Protection From Most Creditors

General creditors cannot force the sale of a homestead. This includes credit card companies, medical bill collectors, and most judgment creditors.

2. Lower Property Taxes

Both Collin County and Tarrant/Denton County offer:

General Residential Homestead Exemption
65+ exemption (if applicable)
Disabled person exemption

These reduce the taxable value of your home.

3. Family Stability

Texas homestead law ensures that your surviving spouse or minor children have a place to live—even if the estate owes debt.

4. Estate Planning Advantages

The homestead receives special treatment during probate, often preventing creditors from reaching it and protecting surviving family members’ rights.

Practical Example for Homeowners

If you face an unexpected lawsuit or medical debt, your McKinney or Southlake home is generally protected from forced sale—so long as it is your primary residence and your homestead exemption is properly filed.

This protection offers powerful peace of mind during financial uncertainty.

How to File Your Texas Homestead Exemption

Whether you live in McKinney or Southlake, the filing requirements are almost identical.

1. Confirm Eligibility

You must occupy the home as your primary residence.

2. File With Your County Appraisal District

Collin County (McKinney)
Tarrant County (Southlake)
Denton County (North Southlake properties)

3. Required Documentation

Texas driver’s license or state ID showing the home’s address
Completed Residence Homestead Exemption application

4. Filing Deadlines

Texas allows filing any time of year, but exemptions take effect for the year filed if submitted before April 30.

5. No Renewal Required

Once accepted, Texas homestead exemptions stay active unless:

You move
You change driver’s license address
The appraisal district requests re-verification

Common Misconceptions (Corrected & Verified)

Myth 1: Homestead protection covers every type of debt.

Fact: It does not protect against property taxes, mortgages, HOA foreclosures (in some cases), or home improvement liens.

Myth 2: You’re automatically protected without filing.

Fact: Some protections exist automatically, but full tax benefits and recognition by the appraisal district require filing the exemption.

Myth 3: You can claim homestead on rental homes or vacation homes.

Fact: Only your primary residence qualifies.

Why Homestead Protection Matters for Families in McKinney & Southlake

Both communities are known for stability, growth, and strong family-oriented neighborhoods. Your home is likely one of your biggest financial and emotional investments.

Homestead protection helps ensure:

Your family remains housed during financial hardship
Your surviving spouse and minor children retain rights to the home
Creditors cannot wipe out generations of equity
Your estate is protected during probate

Combined with an effective estate plan (wills, trusts, transfer-on-death deeds), homestead protection becomes one of the strongest safeguards available under Texas law.

Take the Next Step: Protect Your Home Today

If you live in McKinney or Southlake, filing your homestead exemption and understanding your legal protections is essential. But every family’s situation is different, and homestead rights often interact with: