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Buying Before Receiving Posting Message - Advice

Scoobs

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I'm looking for advice here from anyone who has first hand, exact knowledge about the latest IRP policies and if someone actually did what I'm thinking (only thinking about it at this time) to do.

I'm currently OUTCAN and I know the area that I will be posted back to (as the military is paying me to do my degree and the unit paying for it wants me there; plus, in my OUTCAN posting message, it states that I would be going back to the area I'm thinking of buying in).  I'm going back to the same area I was at prior to being posted OUTCAN.

I sold my house prior to departing Canada and banked the money for the future downpayment.  As well, my financials allow me to be able to carry rent (as it is subsidized) and a mortgage (plus associated costs) back in Canada.  I estimate that it would take about $12,000 in lawyers fees, land transfer tax, etc. to complete the sale of the home and I have no issue carry these costs until I'm back in Canada in May or June of APS 16.  If Brookfield balked at paying the fees if I buy the house prior to getting my posting message back to Canada, I could still afford the $12,000 hit (obviously this is not the preferred solution).

The house that I'm interested in is selling way below it is worth (as the area I'm interested in back in Canada is most definitely a buyer's market right now), the house is empty (and thus the sellers are really motivated; the price is dropping about $5,000 per month), and it meets all of our needs (plus it has more, but not too extravagant as I still must pay the mortgage after all).

My question is this.  If I buy the house and take possession of it prior to receiving my posting message, but do get the posting message to that area, will Brookfield still have to pay me for the costs associated with purchasing the house?  I already know that I wouldn't be able to use the posting allowance to buy the interest rate down (I'm not too worried about the interest rate right now as they are very, very low and I have an excellent credit rating).

Please, only serious advice from those with specific IRP knowledge and/or who may have done something similar.  Remember, I'm only thinking about it at this moment (I haven't committed anything to this yet).
 
I can not give you current regulations, but in 2003 I was holding two mortgages, prior to the end of my service.  In 2005, I was able to sell one and pay off the other, and claim it all after the final move.  I had to keep receipts and copies of all my costs, fees and documents from my 2003 purchase on file until I sold my residence in 2005, before I could submit them both (sale and purchase) for the claim.  How things may have changed I can not say with any authority.  The CBI only mentions a five year period in para 208.96(2)

My first advice though, is to ensure with your Career Manager that indeed you are being sent to that location, even if a Posting Message has yet to be cut.

This may help:
208.96(7) (Reimbursement of interest charges when purchasing replacement residence) Subject to paragraph (8), a member entitled to reimbursement under paragraph (2) who purchases a replacement residence before the sale of the former principal residence is completed shall be reimbursed the interest charges and any necessary legal and administrative costs associated with a loan or part of a loan used to purchase the replacement residence, in an amount not to exceed the equity in the unsold principal residence.
 
Here is the para out of the current IRP manual:
8.1.03 Time limitations

CF members may claim benefits in this chapter provided that the closing date of residence sold or purchased is no more than one year before or two years after the:
•change of strength (COS) date; or
•the date of the shipment of HG&E to the new place of duty

whichever is later.

Note: If the CF member is tasked (attach posting, TD) outside the geographical area of the new place of duty and the time limitation has not expired, the time limitation may be extended by the corresponding number of days tasked away from the new place of duty. A written statement that there is no intent to post for 12 months from the time of the request is required from the CM.

Therefore, as long as the shipment of your HG&E is less than a year away, you are good to go.

As an aside, if you are looking at a place in NE Alberta, I'd be very careful on what you purchase right now. The issue isn't so much losing money, its finding someone to make an offer. There were over 400 listings per month with less than 100 sales during APS.
 
Thanks for all the advice guys.  I still have contact with my Brookfield rep for my posting down here as there are still some open items related to my move (not Brookfield's fault, it's mine), so I'm going to review the refs you guys gave me and then formulate an email to the Brookfield rep.  I know that they'll give me the standard warning of you're taking a risk, but I expect (based on Captloadie's response) that I'll be okay.

Good advice on contacting the Career Manager.  I'm going to give him a call today or tomorrow.  Plus, I'm going to reconfirm with the unit that I'm going to that nothing has changed.  Of course, we all know that things can, but in my particular case I MUST go back to Canada come the end of my degree completion down here (the States) and everyone since "the beginning of time" that gets sent down here goes back to the same unit (as this is the sponsor).

Once again, thanks for all the advice.  Much appreciated.

P.S. It's not NE Alberta.  I'm purposely not saying the location as I'd rather keep that private.
 
I emailed the Brookfield rep and the rep confirmed what Captloadie said.  As long as I get a posting message to the area that I could possibly buy in and it was less than a year from the COS date, I would be reimbursed the purchasing costs.  I would not get a HHT, but rather a DIT.  No biggie, but good news that I would be reimbursed. 
 
Do you have a plan if your posting message comes out as another base after you've already purchased this house?

Never underestimate the army's ability to screw you.
 
I know that there is always a chance that I be posted elsewhere, but this chance is very small considering my personal situation:

OUTCAN = coming back to Canada;
Doing a Master's degree = going back to the unit that is paying over $100,000 (probably closer to $150,000 Cdn) to have me do my Master's in the States;
It states it in my posting message down to the States that the intent is to go back to the unit sponsoring me; and
The guy I am replacing has his plans all lined up to get out of the military.

All of that being said, if (big if) I put an offer in on a house prior to actually receiving my posting message, I will include a clause in the offer of some sort "Contingent on receiving posting message".  If the sellers don't like it, then I don't buy their house.  It's a buyer's market after all.
 
I would wait if i were you.  FYI, CMP/DGMC/DMilC intent it to have the posting messages out early this year, Feb-early Mar.  But, depending on the results of the election all that might change...
 
Scoobs said:
All of that being said, if (big if) I put an offer in on a house prior to actually receiving my posting message, I will include a clause in the offer of some sort "Contingent on receiving posting message".  If the sellers don't like it, then I don't buy their house.  It's a buyer's market after all.

This would be a very smart thing to do!  Should the intended relocation plan not come through, then you will still have an out and be able to back out of your offer with no penalties or hassles.
 
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