When a homestead is conveyed by the owner thereof, such conveyance shall not subject the premises to any lien or incumbrance to which it would not be subject in the possession of such owner; and the proceeds thereof, to the extent of the amount of $50,000 for premises owned by an individual owner or $100,000 for premises owned by 2 or more individual owners, shall be exempt from judgment or other process, for one year after the receipt thereof, by the person entitled to the exemption, and if reinvested in a homestead the same shall be entitled to the same exemption as the original homestead.
12-906.Proceeds of sale.
Article XII. Judgments - Enforcement · Part 9. Exemption of Homestead · Last amended 2026 · Last verified July 20, 2026
In one sentenceShields the first $50,000 (or $100,000 for co-owned homes) of homestead sale proceeds from creditors for one year after the owner receives them, and carries that protection into a new home if reinvested.
Full Text of 735 ILCS 5/12-906
Plain-English Summary
Selling a homestead doesn't create new exposure to creditors: the conveyance doesn't subject the premises to any lien beyond what already applied while the owner held it.
The proceeds themselves stay protected too. Up to $50,000 for a single owner, or $100,000 for two or more owners, is exempt from judgment or other process for one year after the person entitled to the exemption receives the money.
If that money goes toward a new home, the protection follows it: the new homestead gets the same exemption as the original.
Frequently Asked Questions
How long are homestead sale proceeds protected from creditors?
For one year after the person entitled to the exemption receives the proceeds.
How much of the sale proceeds is exempt?
$50,000 for a single owner, or $100,000 for two or more owners.
What happens if the proceeds are used to buy a new home?
The new homestead gets the same exemption as the original one.
Does conveying the homestead create new liens against it?
No. The conveyance doesn't subject the premises to any lien it wasn't already subject to in the owner's hands.
When does the one-year protection period start?
When the person entitled to the exemption receives the proceeds, not at the date of sale itself.
Amendment History
(Source: P.A. 104-120, eff. 1-1-26.)
Source & verification. Section text and amendment history are
reproduced verbatim from the Illinois Compiled Statutes, published by the
Illinois Compiled Statutes, Illinois General Assembly / Legislative Reference Bureau. Last verified July 20, 2026.
· Official source
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