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.
More ? [2]
Residential situations and the impact they have on a person's assessment
Chapter 9.2 [3]
Links
[1] https://clik.dva.gov.au/user/login?destination=node/16074%23comment-form
[2] https://clik.dva.gov.au/book/export/html/16074#tgt-cspol_part9_ftn487
[3] https://clik.dva.gov.au/compensation-and-support-policy-library/part-9-principles-determining-pension-rate/92-residential-situation
[4] https://clik.dva.gov.au/book/export/html/16074#ref-cspol_part9_ftn487