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2615.55.00 LAND SALES CONTRACT

A land contract must be evaluated according to the requirements of each assistance category. Property which is being sold on contract is to be entered in the eligibility system. 2615.55.05 LAND SALES CONTRACT (S)

Sales contracts for the sale of land or buildings are not counted as resources to the owner of the contract if it is producing income consistent with its fair market value. (f13) 2615.55.10 LAND SALES CONTRACT (C)

When an applicant/recipient is the owner of a contract for the sale of real property, the equity value of the contract is counted toward the resource limit of the AG.

The equity value is equal to the principal balance remaining to be paid on the contract, which is referred to as a land contract or installment contract.

The equity value of a contract is to be considered a resource except when the contract contains a clause that prohibits the owner from selling or transferring the contract. In such an instance, the equity value is exempt. However, the portion of the periodic payment that represents payment toward the principal is counted as a resource.

EXAMPLE:

A TANF applicant contracted to sell a piece of real estate for $15,000. To date, $8700 has been paid on the principal. The remainder, $6300, is considered a resource to the applicant.

2615.60.00 VEHICLES

Each assistance program has different requirements for considering vehicles. Requirements may differ between the categories. The following sections describe how to determine the resource value of vehicles. 2615.60.05 DEFINITION OF VEHICLE

A vehicle is any conveyance that provides transportation or conveyance of persons or goods from place to place. Automobiles, trucks, vans, motorcycles, mopeds, boats, snowmobiles, and so forth are classified as vehicles. 2615.60.10 EXEMPT VEHICLES (S)