Part VIII - Sale of Home

8.1 Purpose

8.1.1 To enhance the employee’s mobility by assisting in the disposal of a principal residence at the former workplace.

8.2 Home Equity Assistance (HEA)

8.2.1 Employees who sell their home at a loss may be reimbursed the difference between the original purchase price and the sale price as follows:

 Basic Core Fund

1. 80% of the loss, to a maximum of $15,000;
   
   Core Customized Fund
2. in excess of the Basic Core entitlement.

8.2.2 Any reductions of the purchase price based upon deferred maintenance shall not be included when calculating HEA. For example, if an inspection of a residence reveals that the furnace must be replaced and if the asking price is reduced in lieu of replacing the furnace, this amount is excluded under HEA.

8.3 Occupancy Requirements

8.3.1 There is no entitlement for the reimbursement of expenses associated with the sale of a property unless the employee, his/her dependants or both, immediately prior to official notification of the posting, occupied the residence as the principal residence (as defined by CRA).

8.4 Lot Size

8.4.1 The reimbursement of expenses in this directive is limited to a lot size of not in excess of 1.235 acres (0.500 hectare) or less, unless otherwise required by zoning law, but not to exceed 4 acres (1.619 hectares).

8.4.2 When an employee sells land or acreage as a parcel with the principal residence, the employee shall only be reimbursed for that portion of the cost which results from the sale of the residence together with the lot size limitations as indicated above.

8.5 Co-Ownership

8.5.1 Where the principal residence is co-owned by a person who is not the spouse or common-law partner or a dependant of the employee:

1. only that portion of the expenses directly proportional to the employee’s legal share of the property shall be reimbursed;
2. the employee must provide such information regarding the percentage of ownership the CRSP requires.

8.6 Funding Overview

8.6.1 The benefits outlined in this part are paid from both the Basic Core Fund and if need be, the Core Customized Fund as follows:

Benefit	Basic Core Fund	Core Customized Fund
Real estate commission	Established corporate rates
Legal fees and disbursements	Established corporate rates
Appraisal fees	One professional appraisal	One additional if deemed necessary
Mortgage breaking penalties	Employee chooses not to buy; or cannot buy: 3 months’ interest maximum, or $5,000 - whichever is less	Employee did not port the mortgage when this was an option - Personalized Funds: Up to 3 months’ interest, or $5,000 - whichever is less
Attending fees/power of attorney	As per this directive
TDRA	Up to 6 months maximum Actual and reasonable costs	Additional months
Commuting assistance	Up to 3 months maximum $500 /month maximum
Structural inspection		As described in section 8.16
Home equity assistance	Up to $ 15,000	Amounts in excess of Basic Core funds
Professional cleaning - former/new residence	$100 maximum (tax included)	Amounts in excess of Basic Core funds
Capital improvements
Marketing incentives		As recognized by CRA
Property management fees

  

8.7 Real Estate Commission

8.7.1 Employees shall be reimbursed actual real estate commissions under the Basic Core Fund not exceeding the rates established with the CRSP.

8.8 Legal Fees

8.8.1 Employees shall be reimbursed expenses incurred to complete the sale of the property from the Basic Core Fund as follows:

1. legal fees and disbursements including applicable taxes;
2. legal expenses incurred to provide clear title to a property.
3. land survey costs if the employee’s lawyer/notary certifies that:
   1. the last survey is more than five (5) years old; or
   2. observable changes have been made to the lot since the last survey; or
   3. by law, the vendor is required to provide a survey.
4. charges levied by the lender for the disposal of a first or second mortgage on the property, but not both.

8.9 Appraisal Fees

8.9.1 A professional appraisal helps the employee to establish a realistic asking price for the principal residence. Employees shall be reimbursed for the cost of:

 Basic Core Fund

1. one professional appraisal (Directive specific) not exceeding pre-negotiated rates;
   
   Core Customized Fund
2. a second appraisal if desired by the employee.

8.10 Mortgage-Breaking Penalties

8.10.1 When an employee incurs a mortgage early repayment penalty he or she shall be reimbursed an amount not exceeding three (3) months’ interest or $5,000, whichever is less and as follows:

 Basic Core Fund

1. employees purchasing at the new location who cannot port mortgage;
2. employees who rent at the new location;
3. employees who are unable to buy because of a requirement to occupy Crown housing;
   
   Personalized Funds
4. employees who purchase at the new location and who decide not to port their mortgage when portability was an option.

8.11 Attending Fees or Power of Attorney

8.11.1 Fees for the preparation of a Power of Attorney are not normally reimbursable. However, such fees may be reimbursed from the Basic Core Fund if the employee was prevented from being present for operational reasons.

8.12 Temporary Dual Residence Assistance (TDRA)

8.12.1 Employees shall be reimbursed actual and reasonable expenses associated with maintaining two residences.

8.12.2 The purpose of TDRA is to assist employees with the costs associated with maintaining a second residence when circumstances prevent the employee from disposing of the principal residence at origin and making a door-to-door move. Employees shall be reimbursed actual and reasonable expenses associated with maintaining a second residence in each of the following four family situations:

1. the employee moves HG&E and family;
2. the employee proceeds unaccompanied;
3. the employee ships HG&E – leaves one or more dependents at origin; or
4. one or more dependents precede the employee.

8.12.3 Employees may only receive TDRA for one of the four situations above at a time, and TDRA provides for a different range of benefits in each of these situations. Employees may change from one family situation to another at any point and continue to receive TDRA, however this does not extend the maximum 180 consecutive day period for which an employee can receive TDRA benefits.

8.12.4 Specific provisions related to each situation eligible for TDRA are listed below.

8.12.5 Employee Moves HG&E and Family - When an employee and dependants proceed to a new place of duty and the former residence remains unsold, vacant, and is being actively marketed, the following benefits shall be reimbursed on the unsold property:

1. interest charges on a first or on a second mortgage if there are no charges on the first mortgage;
2. property taxes;
3. utilities (i.e. electricity and heating);
4. property maintenance (snow removal, lawn cutting, etc.);
5. additional insurance costs; and
6. rental of mobile home pad.

8.12.6 Expenses under subsection 8.12.5 will be charged to the following funding accounts:

 Basic Core Fund

1. actual and reasonable expenses;
2. 180 days (six months) maximum;
   
   Core Customized Fund
3. period(s) in excess of six months (180 days).

8.12.7 Employee Proceeds Unaccompanied - An employee preceding the family to the new location has a choice of temporary/permanent accommodation. The costs of this accommodation shall be reimbursed as follows. Accommodation other than permanent accommodation must be approved by the Departmental National Coordinator before the employee secures such accommodation.

1. Interim Accommodation - Employees proceeding alone to the new place of duty shall be reimbursed interim accommodation expenses from the Basic Core Fund to a maximum of seven (7) days in order to secure semi-permanent accommodations.
2. Commercial Accommodation (Hotels/Apartment-Hotels)
   
            Basic Core Fund
   
   1. actual and reasonable lodging expenses inclusive of parking, laundry charges, etc.;
   2. 180 days (six months) maximum;
   3. 65% of dinner rate;
      
      Core Customized Fund
   4. period in excess of six months (180 days).
3. Private Accommodations or Room & Board
   
            Basic Core Fund
   
   1. actual and reasonable lodging expenses up to customary boarding and lodging rates for that location;
   2. up to 180 days (six months);
   3. no meal allowances are payable.
      
      Core Customized Fund
   4. lodging expenses in excess of the Basic Core Fund;
   5. no meal allowances are payable;
   6. for persons in private accommodation, deductions in the monthly allowance shall be made if the period of absence exceeds one week. Reductions shall be proportionate to the period of the absence.
4. New Permanent Family Home - rented or purchased - When an employee proceeds unaccompanied to a new workplace and the former residence remains unsold and is being actively marketed, the following benefits are reimbursable on the property at the new location:
   1. rental costs inclusive of associated living expenses such as parking, laundry charges, and furniture rental;
   2. utilities (i.e. basic telephone, cable and electricity);
   3. interest charges on a first or second mortgage if there are no charges on the first mortgage;
   4. property taxes;
   5. rental of mobile home pad;
      
      Basic Core Fund
   6. actual and reasonable expenses;
   7. up to 180 days (six months);
      
      Core Customized Fund
   8. period in excess of the Basic Core Fund.
5. Government Owned or Controlled Accommodation
   
           Basic Core Fund
   
   1. reimbursement of actual costs for meals provided, accommodation and incidentals;
   2. when these living quarters are self-contained with meal preparation facilities, the only expenses reimbursed shall be the cost of utilities and laundry (not dry cleaning) when these are not provided free of charge to the employee.

8.12.8 Employee ships HG&E - leaves one or more dependants at origin - When one or more dependants of an employee remain at the former workplace to complete an educational term (middle school, secondary school - semester, university - current school year), or for some other justifiable reason, the only living expenses reimbursed are as follows:

 Basic Core Fund

1. $525/month for actual and reasonable living expenses;
2. up to 180 days (six months);
   
   Personalized Funds
3. amounts in excess of the Basic Core Fund.

Notes:

1. When the employee or family, or both, are relocated, but one or more dependants (who had lived in the family home at the time of the relocation) remain at the old location (e.g. to complete an educational term or for other justifiable reasons), the employee shall be reimbursed the equivalent of the private accommodation allowance ($525) to help defray the dependant’s living costs. Only one allowance shall be paid. This assistance is not payable if other TDRA is being paid.
2. Dependants left behind for school, at the conclusion of the semester or school year are entitled to transportation and travelling expenses in accordance with Part VI - Travel to the New Location, of this directive.

8.12.9 Dependant(s) precede employee - When one or more dependants precede an employee and the family to the new workplace (normally to start an educational term), the employee shall be reimbursed their living expenses from the Basic Core Fund, to the maximum of the private accommodation allowance of $525.

8.13 Conditions of Reimbursement - TDRA

8.13.1 An employee shall be responsible at all times for the expenses associated with one residence.

8.13.2 TDRA ceases when ownership of residence at origin ceases or when funds from the Core Customized and Personalized Funds have been depleted.

8.13.3 The principal residence at origin must be actively marketed for sale.

8.13.4 The separation is not due to dependants remaining behind to dispose of income- producing property or for employment purposes.

8.13.5 A dependant left behind must have resided in the principal residence at the time the relocation was authorized and prior to the relocation must be in full time attendance at school.

8.13.6 The following are non-reimbursable expenses:

1. the capital costs portion of a mortgage payment;
2. car rental costs at either location;
3. expenses related to a dependant who has been attending school and was not living at home prior to the employee’s relocation, because expenses would not be increased by the relocation;
4. expenses related to the voluntary separation of the family for personal reasons.

8.14 Weekend Travel Home while on TDRA

8.14.1 This entitlement is applicable to employees with dependants who remain in the family home.

8.14.2 When a door-to-door move is not possible, employees shall be entitled to travel home on weekends while on TDRA. The total number of weekend travel home trips shall not exceed:

1. two (2) trips over the initial thirty days of the TDRA; and
2. four (4) trips over the initial 60 days of the TDRA; and
3. not to exceed five (5) trips over the period of the TDRA.

8.14.3 Payment of these transportation expenses comes from the Basic Core Fund.

8.15 Commuting Assistance

8.15.1 When the old and new locations of work are within daily commuting distance and purchase of a residence at the new place of work meets the 40 km limitation as defined by the Income Tax Act, the gaining manager may, in consultation with the Departmental National Coordinator, approve commuting assistance to allow the employee to commute daily while making the decision whether to acquire permanent accommodation at the new place of work. When approved, commuting assistance is paid instead of the costs that would be incurred for temporary accommodation at the new place of work. For greater clarity, each day that commuting assistance is claimed reduces the TDRA period by one day.

8.15.2 Reimbursement will be based on the kilometric rate approved by the NJC Travel Directive and as follows:

 Basic Core Fund

1. up to three (3) months; and
2. not to exceed $500/month.

8.16 Building/Structural Inspection

8.16.1 Employees shall be reimbursed expenses for a building/structural inspection if it is a condition necessary for the sale of a property as follows:

 Basic Core Fund

1. inspection expenses for situations not under a relocation employee’s control, such as pyrite inspection;
   
   Core Customized Fund
2. reimbursable amount not to exceed corporate fees negotiated by the CRSP.

8.17 Return Trip to Finalize Sale

8.17.1 Where exchange of documents via courier or electronically is not sufficient to finalize the sale, the employee shall be authorized by the Departmental National Coordinator to return unaccompanied to his/her previous workplace to finalize the sale. The employee shall be required to use leave provisions for this travel when it cannot be arranged to correspond with days of rest. Reimbursement shall be as follows:

 Basic Core Fund

1. transportation (by most economical means). When authorized to travel by commercial carrier, employees will be reimbursed for related expenses in accordance with the transportation provisions in the relevant module of the NJC Travel Directive;
2. meals & incidentals (maximum of two days).

8.18 Return Trip to Effect Move

8.18.1 Employees under TDRA or IAM&MA (when short notice move relocation or when already at destination) may return to the former workplace to assist and finalize the shipment of HG&E. The employee shall be required to use leave provisions for this travel when it cannot be arranged to correspond with days of rest and shall be reimbursed actual and reasonable transportation and travelling expenses as follows:

 Basic Core Fund

1. transportation (by most economical means). When authorized to travel by commercial carrier, employees will be reimbursed for related expenses in accordance with the transportation provisions in the relevant module of the NJC Travel Directive;
2. meals for periods (pack/unpack) spent in temporary accommodation - not to exceed five (5) days inclusive of travel period;
3. incidentals (pack/unpack) is for a maximum of five (5) days.

8.19 Professional Cleaning of Residence

8.19.1 Employees shall be reimbursed actual and reasonable expenses for the cost of professional cleaning of the former residence after the HG&E have been loaded and at the new residence before or after the unloading of furniture. Reimbursement shall be as follows:

 Basic Core Fund

1. maximum of $100 (inclusive of taxes);
   
   Core Customized Fund
2. expenses in excess of the Basic Core Fund.

8.20 Income Property

8.20.1 Employees who sell an income-producing property such as a duplex, triplex, multiple unit building, small store or confectionery, that is also their residence, shall only claim expenses for that part of the building which they use as their principal residence. For the purposes of this article, any portion of the residence which is not available for the sole use of the employee on the day the relocation is authorized and for which the employee receives revenue in the form of rent or other payment, is considered to be income-producing.

8.20.2 For example, if the employee owns a multiple unit residence building within which each unit is self-contained (e.g. a duplex or an apartment block), occupies one unit as principal residence, and sells the building on relocation, only those parts of the costs related to the home unit may be reimbursed. The relationship the home unit bears to the entire building may be calculated on the floor area, or by any other method accepted under the Income Tax Act.

8.21 Private Sale

8.21.1 Employees who sell their principal residence privately in lieu of real estate fees shall be reimbursed from the Basic Core Fund for the actual and reasonable costs of a professional appraisal, advertising, “For Sale” signs, and similar expenses related to the sale. The sum of such expenses must not exceed the commission that would have been paid had the residence been sold by a licensed real estate agent.

8.21.2 Employees who sell privately are not entitled to receive the 80% savings on the real estate commission; this benefit is available to employees who choose not to sell.

8.22 Marketing Incentives

8.22.1 Marketing incentives shall be reimbursed when the CRSP advises they are necessary to sell the property. Such incentives, for example decoration bonuses, early closing bonuses, prepaid condo fees and/or property taxes and mortgage interest buy down, shall be clearly identified on an amended property listing agreement and the agreement to purchase document. Incentives are paid from Core Customized/Personalized Funds and are subject to compliance with CRA’s list of marketing incentives.

8.23 Property Management Fees

8.23.1 An employee, who has transferred the Real Estate Commission Savings (for not selling the residence at origin) to the Personalized Fund, may use it to pay for any property management fees incurred.