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Real Estate and Home Sale Programs Flashcards

6 cards from real CRP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 6 Real Estate and Home Sale Programs flashcards as text

  1. In corporate relocation, what is a 'third-party relocation company' (RMC) most responsible for?

    Answer: Managing the end-to-end relocation program on behalf of the employer

    Relocation Management Companies (RMCs) administer corporate relocation programs, coordinating vendors, benefits delivery, and employee counseling on behalf of the client company.

  2. A 'home-finding trip' benefit typically covers which expenses?

    Answer: Travel, lodging, and meals for the employee and family to search for housing in the new location

    Home-finding trip benefits reimburse transportation, hotel, and meal costs incurred while the employee searches for a new home or rental in the destination area.

  3. What does 'RESPA' regulate in the context of home sale relocation?

    Answer: Settlement procedures and disclosures in real estate transactions

    RESPA (Real Estate Settlement Procedures Act) governs disclosure requirements and prohibits kickbacks in residential real estate transactions, including those involving relocation.

  4. An employee is being relocated and their home is 'underwater' (mortgage exceeds market value). Which program best addresses this?

    Answer: Loss-on-sale assistance or mortgage differential program

    Loss-on-sale assistance is specifically designed to compensate employees whose property has declined in value, helping cover the shortfall when selling below the loan balance.

  5. What is the function of a 'referral fee' paid by a destination real estate agent to the relocation company?

    Answer: It is a fee paid to the RMC for referring the transferee buyer to the agent, helping offset program costs

    Destination referral fees (typically 25–35% of commission) are paid by the buyer's agent to the RMC and help offset overall program administration costs.

  6. What is a 'capped program' in the context of relocation home sale benefits?

    Answer: A program that limits the maximum dollar amount the employer will pay for home sale costs or losses

    Capped programs set a maximum ceiling on employer financial exposure for home sale assistance, balancing employee protection with cost control.