If you have received your posting notice (or you expect to receive it soon), you need to know the Integrated Relocation Program (IRP) procedures. IRP is very detailed and sometimes confusing.
One of the most important decisions that you have to make is the selection of your Realtor. Although you will be reimbursed for some or all of any loss that you suffer on the sale of your house, you want to make a profit on the sale of your house. Select an experienced Realtor who services the area in which your house is located. Avoid the temptation to select the Realtor who tells you that your house is worth the most money – they may just be trying to get the Listing for your house. Although Brookfield Global Relocation Services (BGRS) has a list of Realtors who have agreed to follow the IRP Tariff, you may select any Realtor you want (whether or not their name is on the list). If the Realtor charges you more than the IRP Tariff you will be responsible for the additional cost. You can request a commitment from your Realtor that their fees will not exceed the IRP Tariff.
IRP requires that you have your present house appraised by two appraisers. The appraisals will assist you in determining how to price your house. BGRS maintains a list of ‘Participating Accredited Appraisers.’ These are qualified appraisers who have agreed to accept the fees set by BGRS to appraise your house. You can use another appraiser provided that they are qualified. If they charge more than the BGRS approved fee, you will have to pay the difference.
If you sell your house for less than you paid for it, at least 80% of the loss will be reimbursed (you can recover 100% of the loss if you have room available in your funding envelope). If you made capital improvements to your house after you purchased it, you may also be able to recover this portion of your loss on the resale. If you sell your house for less than 95% of its appraised value, you will require DCBA approval (in advance) to be eligible for repayment of any loss on the resale.
There will be a ‘Mortgage Breaking Penalty’ if you pay out a closed mortgage on your house. If you move (port) the mortgage to your new house, the penalty will be waived. If you do not buy a new house or you cannot port your mortgage, you will be reimbursed for a 3-month pre-payment penalty to a maximum of $5000.00. If you have to pay a penalty because you choose to not port your mortgage, the pre-payment penalty may be reimbursed from your Enhanced Core or Customized Funding envelope.
Temporary Dual Residence Assistance is available to cover some of the costs if you are unable to sell your present house before you purchase your new home (maximum of $1000.00 per month for 6 months) . Professional Cleaning of Residence will reimburse you up to $100.00 for cleaning your house. If the cleaning costs exceed $100.00 it may be reimbursed from your Enhanced Core or Customized Funding envelope.
Marketing incentives (bonus for early closing, mortgage interest rate buy down, decoration bonuses and similar items) may be reimbursed out of your enhanced core or customized funding envelope if they are approved by your Relocation Consultant.
If you do not sell your home, 80% of the real estate commission that you would have paid (to a maximum of $12,000.00) may be transferred to your customized Funding Envelope. This means that if you do not spend this money on your move, you will receive the cash. If you expect to retire back to the area in which your present house is located, you may want to consider keeping your present house.
To qualify for the benefits payable by IRP in relation to the sale of your home, you must sell your existing house within two years of being posted.
Contact our offices or your Relocation Consultant for more details on your entitlement to benefits on the sale of your existing house when you are posted.
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Feel free to contact us at any point for assistance or advice with respect to Real Estate law. We may be reached at 705.435.4339 or contact us via email .