A Contract for Deed is when someone sells a piece of property with payments. The seller is financing the contract.
INCOME: The payments are counted as unearned income.
RESOURCE: The balance owed is a countable resource. If the buyer fails to make the contracted payments, the entire fair market value (FMV) becomes countable.
If the deed is transferred to the buyer before the loan is satisfied, the balance is considered a transfer of assets.
If the contract is for less than fair market value (FMV), the difference is considered a transfer of assets.
Refer to LTC: Transfer of Assets / Penalty Period Overview for information on assessing the penalty.
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