sec.8AMeaning of unencumbered value

sec.8A Meaning of unencumbered value

The unencumbered value of property is the value of the property determined without regard to— any encumbrance to which the property is subject, whether contingently or otherwise; or any arrangement— the parties to which are not dealing with each other at arm’s length; and that results in the reduction of the value of the property; or any arrangement for which a significant purpose of any party to the arrangement was, in the commissioner’s opinion, the reduction of the value of the property. Also, the unencumbered value of property held by a person on trust as guardian for another person who is under a legal disability must be determined without regard to the liabilities of the trust, including the liability to indemnify the trustee. In this section— property means— a home; or land; or a relevant interest in land. s 8A ins 2008 No. 75 s 47 (sec.8A-ssec.1) The unencumbered value of property is the value of the property determined without regard to— any encumbrance to which the property is subject, whether contingently or otherwise; or any arrangement— the parties to which are not dealing with each other at arm’s length; and that results in the reduction of the value of the property; or any arrangement for which a significant purpose of any party to the arrangement was, in the commissioner’s opinion, the reduction of the value of the property. (sec.8A-ssec.2) Also, the unencumbered value of property held by a person on trust as guardian for another person who is under a legal disability must be determined without regard to the liabilities of the trust, including the liability to indemnify the trustee. (sec.8A-ssec.3) In this section— property means— a home; or land; or a relevant interest in land.

• (a) any encumbrance to which the property is subject, whether contingently or otherwise; or
• (b) any arrangement— (i) the parties to which are not dealing with each other at arm’s length; and (ii) that results in the reduction of the value of the property; or
• (i) the parties to which are not dealing with each other at arm’s length; and
• (ii) that results in the reduction of the value of the property; or
• (c) any arrangement for which a significant purpose of any party to the arrangement was, in the commissioner’s opinion, the reduction of the value of the property.
• (i) the parties to which are not dealing with each other at arm’s length; and
• (ii) that results in the reduction of the value of the property; or
• (a) a home; or
• (b) land; or
• (c) a relevant interest in land.