Homestead Declaration: Homestead laws protect the possession and enjoyment of the homeowner and his/her family against the claims of certain creditors by preventing the property from execution and forced sale so long as the owner occupies the property as his/her primary residence. Rhode Island homeowners receive an automatic $500,000 in equity protection against debt collectors. Massachusetts homeowners receive an automatic $125,000 protection and may elect to file a homestead declaration with the Registry of Deeds that will give them up to $500,000 in equity protection from non exempt creditors.
Homestead Exemption: In some Rhode Island cities/towns owners that occupy their property as their primary residence get a reduction on their annual property taxes.