PM 07-01-04: Real Property

WAG 07-01-04

Real property is land and generally whatever is built on it (such as buildings) or growing on it. Legal and equitable interest in real property includes interest in coal, oil, gas, and other mineral rights. Mobile homes are real property when classified as such for tax purposes.

There are 2 types of real property, homestead and non-homestead, and they are treated as follows:

Homestead Property

Homestead property is exempt. It is the dwelling where the benefit unit usually lives. It includes any surrounding land that is not separated from the home by someone else's property. A public right of way does not break up homestead property.

Non-Homestead Property

Non-homestead property is nonexempt, and is all real property that is not the unit's homestead.

Use the equity value of all non-homestead property when figuring asset eligibility.

Property being bought or sold on contract for deed has no equity value for either the buyer or seller until a final settlement is made on the property. A final settlement is when the buyer makes the final payment and takes title, or the buyer defaults on the contract and the seller takes back the property.

Verify and record in the case record the extent of a client's interest in real property. See PM 07-01-02 if the property is jointly owned and all the owners do not agree to sell the property.