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Other Real Property (ORP)
Exemption/Unavailability of ORP
The following chart summarizes if and when Other Real Property is exempt:
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If the combined net market value of all Other Real Property (ORP) is... |
And... |
Then... |
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At or Below $6,000, |
Is being utilized, |
It is exempt. |
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At or Below $6,000, |
The value of ORP, when added to other nonexempt property, is under the property limit for the MFBU. |
It is counted in the property determination AND no utilization requirement is needed. |
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Above $6,000, |
Is being utilized, |
The first $6,000 of its net market value is exempt.
The net market value in excess of $6,000 must be counted in the property reserve. |
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Above $6,000, |
Is not being utilized, |
The full net market value is counted in the property reserve. |
Other Real Property, regardless of its value, is considered unavailable beginning the first day of the month in which a good faith effort to sell is started, and remains unavailable until the last day of the month in which the property has been sold.
Necessary steps demonstrating a good faith effort to sell include but are not limited to:
- Listing the property for sale with a licensed real estate broker for FMV established by a real estate appraiser.Advertising the property for sale in at least one local newspaper.
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Note: If there is no local newspaper, then the property must be advertised in a newspaper with local distribution.
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- Accepting offers within 2/3 of the FMV and supplying copies of all offers.
The client must submit verification to the EW that all requirements above are being met every six months.Additionally, the EW may request verification whenever he/she feels it is necessary in order to establish that the property remains unavailable.
Good cause for ceasing to make a good faith effort to sell exists when the individual has accepted a legitimate offer, and:
- Either the buyer is unable to complete the purchase, OR
- The offer is eventually found not to be legitimate.
Note: A copy of the written offer for the property must be provided to the EW.
Related Topics
Other Real Property Definitions