1. (a) The sale of a resource, including disregarded resources, is considered a conversion of one (1) type of resource (property) to another type (cash) except when the terms and conditions of the sale preclude the seller’s ability to obtain full payment on demand.
2. (b) When an individual sells either real or personal property, the amount the individual received for the property and any terms or conditions of the sale will be determined.

3. (c) The net proceeds from the sale, sale price less any outstanding encumbrances and costs related to the sale, will be considered as follows:

   1. (1) If the homestead was sold, refer to 20 CAR § 502-421;
   2. (2) If the family’s only car/truck is sold, the proceeds may be disregarded if the proceeds are applied to the purchase of another car/truck within thirty (30) days of the sale;
   3. (3) If full payment was received, apply that amount to the resource limit; and
   4. (4) If the individual sold the property through an installment contract, then the installment payment, less any amount for which the seller is still obligated to pay on the sold property, will be considered as unearned income. Example: Mr. and Mrs. Warren have agreed to sell five (5) acres of land they are currently buying in another county. The contract they have entered into with the buyer specifies that the buyer will pay them two hundred dollars ($200) per month for five (5) years. The Warrens will continue to make payments to the bank on the land in the amount of one hundred fifty dollars ($150) per month. Therefore, only fifty dollars ($50.00) of the two hundred-dollar payment made to the Warrens will be counted as unearned income.

Codification Notes: This section as promulgated prior to codification into the Code of Arkansas Rules provided as follows: “07/01/97”