Homestead Protection leases.

CFR · 2024-01-01 · US · Title 7

(a) (2) If a third party obtains title to the property: (i) The applicant and the property are no longer eligible for homestead protection; (ii) The Agency will not implement any outstanding lease-purchase agreement. (3) The borrower may request homestead protection for property subject to third party redemption rights. In such case, homestead protection will not begin until the Agency obtains title to the property. (b) (2) All leases will include an option to purchase the homestead protection property as described in paragraph (c) of this section. (3) The lease term will not be less than 3 years and will not exceed 5 years. (4) The lessee must agree to make lease payments on time and maintain the property. (5) The lessee must cooperate with Agency efforts to sell the remaining portion of the farm. (c) (2) If the lessee is a member of a socially disadvantaged group, the lessee may designate a member of the lessee's immediate family (that is, parent, sibling, or child) (designee) as having the right to exercise the option to purchase. (3) The purchase price is the market value of the property when the option is exercised as determined by a current appraisal obtained by the Agency. (4) The lessee or designee may purchase homestead protection property with cash or other credit source. (5) The lessee or designee may receive Agency program or non-program financing provided: (i) The lessee or designee has not received previous debt forgiveness; (ii) The Agency has funds available t

official document · source cfr-2024 · id 7:§ 766.154