A homestead declaration does not restrict or limit any right to convey or encumber the declared homestead. A homestead declaration, when properly recorded, is prima facie evidence of the facts therein stated, and conclusive evidence thereof in favor of a purchaser or encumbrancer in good faith and for a valuable consideration.
§ 704.940.Right to Convey Or Encumber Not Restricted; Prima Facie Evidence of Facts Stated
Title 9. Enforcement of Judgments · Division 2 · Chapter 4. Exemptions · Article 5. Declared Homesteads · Enacted 1982 · no amendments on record · Last verified July 28, 2026
In one sentenceSection 704.940 confirms that recording a homestead declaration doesn't restrict the owner's right to sell or encumber the property, and that a properly recorded declaration is prima facie evidence of its stated facts, conclusive in favor of a good-faith purchaser or encumbrancer for value.
Full Text of § 704.940
Plain-English Summary
Recording a declaration doesn't lock a homeowner in. This section makes clear a homestead declaration places no restriction on the right to convey or encumber the declared homestead — the owner can sell it, refinance it, or take out a new loan against it just as freely as before recording.
The declaration does carry evidentiary weight, though. Once properly recorded, it stands as prima facie evidence of whatever facts it states — meaning it's presumed true unless contradicted. For a good-faith purchaser or lender who gives value, that evidence becomes conclusive: they can rely on what the declaration says without worrying it will later be disproven against their interest.
Frequently Asked Questions
Does recording a homestead declaration stop the owner from selling the home?
No. Section 704.940 says a homestead declaration does not restrict or limit the right to convey or encumber the declared homestead.
How much weight does a recorded declaration carry as evidence?
A properly recorded declaration is prima facie evidence of the facts it states, and that evidence becomes conclusive in favor of a good-faith purchaser or encumbrancer who gives valuable consideration.
Amendment History
Added by Stats. 1982, Ch. 1364, Sec. 2. Operative July 1, 1983, by Sec. 3 of Ch. 1364.
Source & verification. Section text is reproduced verbatim from
the Deering's California Codes Annotated / vLex. Enacted by the California Legislature.
Last verified July 28, 2026.
· Official source
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