A land contract, or real estate contract of sale, is considered a resource to the seller of the property if the contract can be sold. In determining the value of the contract, the worker and/or the client determines the salability of the contract and the resulting value (see 468 NAC 2-008.06). The contract is not considered salable unless there is a known buyer. If the contract is determined to be salable, the net value of the contract becomes the value at which it could be sold - minus encumbrances, etc., against the property.
If it is determined and documented that the contract is not salable, the contract is not considered an available resource to the client. The worker shall review the salability at all redeterminations or more often as the worker feels necessary.
Any income received from a land contract is considered unearned income to the client.
(7/10/2000)