Employment of Educators Act, 1998 (Act No. 76 of 1998)RegulationsRegulations regarding the Terms and Conditions of Employment of EducationChapter 4 : Medical Assistance, State Housing, Subsistence Allowance, Official Journeys and Transport, House Owner Allowance, Service Bonus, Long Service Recognition and Resettlement Expenditure76. Employment of the proceeds from the sale of a previously subsidised dwelling |
| (1) | Wan educator or his or her spouse previously owned another dwelling (paid-off or not paid off) which was registered in his or her or his or her spouse's name in respect of which he or she or his or her spouse previously for any period received a subsidy (or allowance on the basis set out in these regulations or a similar basis) on the grounds of his or her spouse's service in the Public Service, an education department, the Department of Posts and Telecommunications, a provincial administration or with a council, institution or body established by or under a legal provision and which was sold (for this purpose it is deemed to be sold on the date on which the property is registered in the name of the owner), he or she is expected (but not obliged) to use an amount equal to the full difference between the full selling price of the previous dwelling, on the one hand, and the total sum of the balance of the mortgage loan (if any) on the date of sale plus his or her sale costs plus purchasing costs (agent's commission, inspection fees, architect's fees, etc.) conveyancing costs and transfer fees on the new property, on the other hand, for the purpose of purchasing the dwelling (or for purchasing the premises and for the construction of the dwelling) which he or she occupies: Provided that— |
| (a) | the "other dwelling" referred to in this subregulation concerns only the last dwelling in respect of which a home owner allowance (previously housing subsidy) was paid; and |
| (b) | a dwelling sold on the leasehold basis is not deemed to have been sold, since it is registered in the name of the "seller". |
| (2) | If an educator does not use (or did not use) the said amount for this purpose, the recognised loan amount on the dwelling which is occupied by the educator (or the total of the recognised loan amounts in the case of an educator who has registered more than one mortgage on his or her dwelling) must be reduced by the said amount for the purpose of calculating the allowance. |
| (3) | Subregulation (2) is applicable in the case of— |
| (a) | an educator who granted the purchaser of his or her previous dwelling an extension for payment of a part of the purchase price until such time as he or she produces proof that the shortfall has been paid in full on the registered mortgage (or the registered mortgages if more than one mortgage is registered in respect of the dwelling); or |
| (b) | an educator who is holding back part of the proceeds for immovable improvements or alterations to the new home, until such time as he or she produces proof that the improvements for which the amount concerned was held back have been completed. |
| (4) | The amount contemplated in subregulation (2) with which an educator is penalised in respect of a particular dwelling, in terms of the order of magnitude of the recognised loan amount which is used to calculate his or her allowance on such a dwelling, is not transferable with regard to dwellings which he or she may purchase or erect later. |
| (5) | An educator who sells a previous dwelling under the circumstances as contemplated in subregulation (1), but who fails or refuses to declare how the proceeds were spent, shall be completely excluded form participation in the scheme from the date of the sale of the previous dwelling: Provided however that he or she qualifies again for participation in the scheme from the salary pay day of the month in which he or she declares how the proceeds were spent. |