Interpretation of Statute

Interpretation of Statute. A. Board interpretation of Section 35-7-17 (4) concerning divestment of property is as follows: A veteran may not close a VHPB purchase until he or she has divested himself or herself of any home other than true rental property. This property includes, but is not limited to, 2nd homes, cabins, mobile homes, camp houses, primary residences, condos, lake homes, vacation homes, and townhouses. Property shall be considered divested upon proof of the transfer of title to another individual (i.e. Recorded Warranty Deed or Quitclaim Deed or proof of a land contract where title passes after the prescribed payment). True rental property is defined as property originally purchased for the intent of rental usage and utilized as a rental unit. In some cases a veteran may have purchased or occupied a home as a primary residence at one time, but now utilizes the property for rental purposes. The Board will not require divestment of this property if the veteran can show evidence that the property has been classified as rental property for a period of not less than two (2) years. An example of acceptable proof is a copy of the veteran’s complete tax return for the previous (2) two years listing the property in Schedule E as rental property.