5 Legal fees and land agent's commission

5.1 Introduction

This section outlines the provisions for the reimbursement of legal fees and land agents commission to teachers entitled to removal expenses. If there is any doubt as to eligibility or the amount of the refund, the matter should be referred to the Resourcing Division.

Reimbursement is limited to solicitor's fees/disbursements, mortgage application fees, land transfer fees, inspection fees, and government registration fees. Local body council rates and fees (such as Land Information Memorandum costs), agency search fees, or costs of valuations on properties are not reimbursable. Reimbursement of travel to complete any sale or purchase of property is limited to the "Payment of Expenses to Visit Accommodation" provision.

Claims made on the sale of a house at the former location will only be reimbursed if the house was owned, being lived in by the teacher, and was at the location at which the teacher taught. For example; a teacher who moves from Wanganui to Christchurch but owns a house in Auckland is not eligible for reimbursement of expenses incurred in the sale of the house in Auckland.

Reimbursements will not be made where the property is owned by a company. Where the property is owned by a Trust, reimbursements will only be made if the teacher who is party to the Collective Agreement is a trustee of the property - owning trust.

5.2 Aggregated maximum refund of legal fees and land agent's commission when buying and selling

Subject to the provisions of this section the following refund may be made:

When a teacher sells a house at the former location and buys another at the new location within 2 years of the date of the new appointment, or sells at the former location and builds and takes occupation of a house at the new location within 2 years of the date of the new appointment.

Actual aggregated expenses for legal fees and land agent's commission combined up to $11,000.

5.3 Legal fees

The refund of legal fees shall be either:

The following points are to be noted in connection with the refund of legal fees:

1. Where a house has been sold at the former location, evidence of the sale must be produced.
2. The term `house' may include a `licence to occupy' as defined in the Companies Amendment Act 1964. (This refers to cases where a teacher buys shares in a flat owning company, and thereby acquires the title and right to occupy a flat.)
3. Receipts or a solicitor's receipted statement covering expenses incurred must be produced. The refund may include stamp duty, bank loan application fee, valuation fee payable for securing an advance on mortgage and, subject to (4) below, costs of registration of a joint family home.
4. The costs of registration of a joint family home are refundable only when:
   1. A house that was registered as a joint family home was owned at the former location.
   2. Action to register the house at the new location is initiated at the same time as it is purchased or erected.
5. A teacher who owns a house at the former location and elects not to sell it but to retain it is not entitled to a refund of expenses incurred in purchasing a home at a new locality.

5.4 Land agent's commission

Subject to the provisions of this section refund of land agent's commission may be made as follows:

When a teacher sells a house at the former location within two years of the date of the new appointment but does not purchase or build another house at the new location within the two-year period              Actual expenses up to $6,300

The following points are to be noted in connection with the refund of land agent's commission:

1. Special publicity costs or other extras in respect of the sale are not refunded, nor is any commission in respect of any house purchased refundable.
2. Receipts are to be produced.

5.5 Advertising costs

When a teacher sells a home at the former location without the services of a land agent, advertising costs of up to $630 may be reimbursed.

5.6 Purchase and sale of land

Subject to the provisions of this section a refund of legal fees and land agent's commission in connection with the purchase and sale of land may be made as follows:

1. When a teacher has previously owned a house or land and purchases land following transfer to another locality with the intention of building a house for the teacher's own use and transfers again before the house is built, assistance is granted towards the cost of legal expenses and land agent's commission in the purchase and sale of the land up to $3,800.
2. When a house or land has not been owned previously and a teacher subsequently purchases land at one locality and transfers again before building, assistance will be granted towards the cost of legal expenses up $500 and land agent's commission up to $2,000 in the sale of the land as follows:
   1. Sale of land in a previous locality must be effected within two years of transferring to a new location.
   2. Purchase of land must have been effected within two years of the date of the previous transfer and within two years of the date of the subsequent transfer.
3. Previous ownership of land does not qualify as previous home ownership for a subsequent house purchase.

5.7 Two-year limitation

Normally all transactions (selling, buying or building) must be completed within two years of the date of transfer to qualify for a refund of expenses.

5.8 Sale of home prior to appointment in another position

Where a teacher anticipates securing a position where full removal expenses are payable, and sells their home before this actually occurs, they will be eligible for a refund of legal and land agent's fees. This is subject to the two-year limitation period as above, commencing from the date of the sale of the house. The refund of land agent's and legal fees will not be made until and unless the teacher wins and takes up another position that qualifies them for the reimbursement of transfer and removal expenses.

Teachers intending to access this provision should notify the Resourcing Division in writing of their intentions before acting.

Evidence of attempts to secure a new position will be required before approval may be granted.

5.9 "Dual" entitlement

Where both partners in a household are eligible in their own right for reimbursement of transfer and removal expenses, and consequently purchase two houses, only one reimbursement for legal fees and land agent's commission for the place of `usual residence' will be made.

5.10 Penalty mortgage repayment charges

Penalty charges that arise from the termination of a mortgage before the completion of the term of the loan will be refunded up to the maximum of $2,400. Proof of any penalty mortgage repayment charges must be provided before reimbursement will be considered.

Mortgage transfer charges are not reimbursable.