True or False: If the seller has a Homestead Exemption, the buyer will automatically be granted a Homestead Exemption.

True or False: If the seller has a Homestead Exemption, the buyer will automatically be granted a Homestead Exemption.

• A. True
• B. False
• C. Depends on the state
• D. Only for primary residences

Answer: (B)

The correct answer is that the statement is false. In Maine, the Homestead Exemption is tied to the ownership of a property and the residency of the owner. When a property with a Homestead Exemption is sold, the new owner must apply for their own Homestead Exemption. The exemption does not transfer automatically to the buyer because it is based on the owner's primary residence status rather than the property itself. If the new buyer intends to occupy the home as their primary residence, they need to complete the necessary application process to receive the Homestead Exemption. This requirement highlights the individual nature of the exemption, emphasizing that it is granted based on the current owner’s residency and does not automatically pass between different owners.

The correct answer is that the statement is false. In Maine, the Homestead Exemption is tied to the ownership of a property and the residency of the owner. When a property with a Homestead Exemption is sold, the new owner must apply for their own Homestead Exemption. The exemption does not transfer automatically to the buyer because it is based on the owner's primary residence status rather than the property itself. If the new buyer intends to occupy the home as their primary residence, they need to complete the necessary application process to receive the Homestead Exemption. This requirement highlights the individual nature of the exemption, emphasizing that it is granted based on the current owner’s residency and does not automatically pass between different owners.