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 469 NAC 2-009.06). 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 must review the salability at all redeterminations or as the worker feels necessary.
Any income received from the land contract is considered unearned income to the client (see 469 NAC 2-010.01H, item 23).
(7/10/2000)