Finance
Under Florida's homestead laws, which of the following is true about homestead protection from creditors?
AThe homestead is protected from all creditors without exception
BThe homestead is protected from most unsecured creditors but NOT from mortgages, mechanics' liens, or property taxes✓ Correct
CHomestead protection only applies to properties worth less than $500,000
DHomestead protection expires after the owner has lived there 5 years
Explanation
Florida's homestead exemption from forced sale protects the homestead from most unsecured creditors (credit cards, judgments). However, the homestead is NOT protected from: (1) mortgage liens on the property, (2) mechanic's liens for labor/materials improving the property, and (3) property tax liens. These creditors can force sale despite homestead protection.
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