Homestead Act or law

Question

In Texas, if a property owner used his 5 acres to promise to pay off a builder to build a house on it for him but didnt finish paying off the builder can he lose all of his property and the house?

Answer 1

Texas homestead law is considered favorites of property law. It liberally protects citizens from losing their property. According to the law, ownership of a property does not entitle a debtor to homestead. The establishment of the right does not make provision for equity, economic right of the property. Neither does it create a title. It stands alone as legal security against creditors. By the Texas Constitution, a homestead may not be forced for sale for payments of debts. To establish a homestead whether rural or urban it must be used as a home. The use of such is sufficient for homestead. In this scenario, a contract is established but there is a limit of protection against creditors. However, under Texas homestead exemption a home owners are covered under the state and federal exempt law.