An urban homestead is a lot or lots of not more than one acre of land used for the purposes of a home or as a place to exercise the calling of the business of the homestead claimant. The general rule is that a homestead is considered rural if the property is not served by municipal utilities and fire and police protection, however, making the distinction between rural and urban can sometimes be difficult. The Texas Constitution and various state laws protect the homestead. Furthermore, the Constitution provides that no lien may be created against the homestead except for money to purchase the homestead and to make improvements to the property which both spouses contract for in writing. This Constitutional protection prevents homeowners from taking out a home equity loan on their homestead.
Homestead is a right to possession, rather than an ownership right.
That means that even if title to the property is in one spouse, if the other spouse does not join in signing the deed to sell the property, the of the non-signing spouse has the right to continue in possession of the homestead. The practical effect of this is that when you sell your home both husband and wife will have to sign the deed, even if only one spouse has title. You are not required to take any action to be afforded the protection of the Texas homestead laws. If you are using the property, or developing the property for use as your home or as a place to exercise the calling of a business, then it is protected.