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Complete a homestead declaration form. Sign your declaration in front of a notary.The homestead exemption gives you rights against many debts you might incur through accident, illness or misfortune. The homestead exemption provides an exemption from property taxes on a home. Homestead protection laws exist to protect your home against most creditors, up to the value of homestead exemption. What is the Homestead Declaration? The homestead exemption does not prohibit the sale of the property. A change in ownership may reset the assessed value of the property to full market value, which could result in higher property taxes. The homestead exemption gives you rights against many debts you might incur through accident, illness or misfortune. This Video Shows you How to Complete an Application for Homestead Exemption.