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Description - Sale of Principal Home or Other Property

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What is a sale of property agreement?

Pensioners can sell their property and receive payment over an agreed period. In most cases there are separate sale and loan agreements and little doubt about whether the agreements create a loan. The following table describes how the agreement is to be considered if separate agreements do not exist.

If...

Then it is considered to be a...

There is not a separate loan agreement

Sale agreement.

The contract uses terms that suggest the existence of a loan, such as references to the repayment of money.

Loan agreement.

a mortgage agreement exists which is expressed to be security for a loan

Loan agreement.

Special rules apply where a person sells their home and retains a right to accommodation.    

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Residential situations and the impact they have on a person's assessment

Chapter 9.2

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