If a homestead declaration is recorded prior to the operative date of an amendment to Section 704.730 which increases the amount of the homestead exemption, the amount of the exemption for the purposes of subdivision (c) of Section 704.950 and Section 704.960 is the increased amount, except that, if the judgment creditor obtained a lien on the declared homestead prior to the operative date of the amendment to Section 704.730, the exemption for the purposes of subdivision (c) of Section 704.950 and Section 704.960 shall be determined as if that amendment to Section 704.730 had not been enacted.
§ 704.965.Amount of Exemption When Declaration Recorded Prior to Increase In Exemption Amount
Title 9. Enforcement of Judgments · Division 2 · Chapter 4. Exemptions · Article 5. Declared Homesteads · Enacted 1984 · no amendments on record · Last verified July 28, 2026
In one sentenceSection 704.965 applies an increased homestead exemption amount to a previously recorded declaration for purposes of the lien-surplus and sale-proceeds rules, unless the judgment creditor's lien attached before the increase took effect, in which case the older, lower amount controls instead.
Full Text of § 704.965
Plain-English Summary
Because § 704.730's exemption amount adjusts over time, this section answers a timing question: which amount applies to a declaration recorded before an increase took effect? The default answer favors the debtor. If a homestead declaration was recorded before an amendment to § 704.730 raised the exemption amount, the increased amount applies when calculating the lien-surplus rule in § 704.950(c) and the sale-proceeds exemption in § 704.960.
There's an exception that favors an earlier-acting creditor: if the judgment creditor already obtained a lien on the declared homestead before the § 704.730 amendment's operative date, the exemption for those same two purposes is calculated as though that amendment had never been enacted — meaning the creditor's lien is measured against the older, lower exemption amount that was in effect when the lien attached.
Frequently Asked Questions
Does an older declaration get the benefit of a later increase in the exemption amount?
Yes, generally. Section 704.965 applies the increased amount for purposes of §§ 704.950(c) and 704.960, even though the declaration predates the increase.
Is there an exception that protects a creditor who acted early?
Yes. If the creditor's lien attached before the amendment increasing the exemption took effect, the exemption for those two purposes is calculated as if the amendment never happened.
Which two sections does this timing rule affect?
Amendment History
Added by Stats. 1984, Ch. 454, Sec. 2.
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
Also known as: homestead exemption increase old declaration californiawhich homestead exemption amount applies california