Law Summary
Transfer of Homestead Rights Prior to Patent Issuance
- Transfer of rights before patent issuance is allowed only if:
- The applicant has complied with all legal requirements but cannot continue the homestead due to no fault of their own.
- There is a bona fide purchaser of the rights and improvements.
- The transfer is not for speculation purposes.
- Transfer requires prior approval of the Secretary of Agriculture and Commerce.
- After transfer, the purchaser must file a homestead application and will assume the original homesteader's rights and obligations from the approval date.
- The original applicant who transferred rights cannot apply for another homestead.
- Any transfer without the Secretary's prior approval is null and void and leads to cancellation of the entry and refusal of patent.
Restrictions on Encumbrance, Alienation, and Transfer of Homestead Lands
- Lands acquired under free patent or homestead provisions cannot be encumbered, alienated, or sold:
- From the date of application approval.
- For 5 years following the issuance of the patent or grant.
- These lands are exempt from satisfaction of debts contracted before the expiration of this 5-year period.
- Improvements or crops on the land can be mortgaged or pledged to qualified parties.
- Transfers of homestead lands after 5 years but before 25 years from issuance require approval of the Secretary of Agriculture and Commerce.
- Such approval shall not be denied except on constitutional or legal grounds.
Effectivity
- The amendments contained in this Act take effect immediately upon approval on June 8, 1939.