CRP Real Estate and Home Sale Programs 2 — Questions and Answers
Question 1: What does 'loss-on-sale' assistance cover in a relocation policy?
- Agent commission fees
- The difference between the employee's purchase price and the lower sale price, compensating for equity loss (Correct answer)
- Penalties for early mortgage payoff
- Inspection and repair costs
Correct answer: The difference between the employee's purchase price and the lower sale price, compensating for equity loss
Loss-on-sale benefits compensate employees who must sell their home at a price lower than they paid, protecting them from forced equity loss due to the transfer.
Question 2: What is a 'duplicate housing' benefit in relocation?
- Paying for two hotel rooms during the move
- Covering carrying costs when an employee owns a home in both the origin and destination temporarily (Correct answer)
- Providing a rental in the new city while the home is under construction
- Reimbursing two moves within five years
Correct answer: Covering carrying costs when an employee owns a home in both the origin and destination temporarily
Duplicate housing benefits reimburse mortgage, utility, and maintenance costs on the old home while the employee is paying for housing in the new location.
Question 3: Which professional does a relocation company typically assign to list an employee's home under a corporate home sale program?
- A real estate agent of the employee's choosing only
- A pre-approved real estate broker or agent from the relocation company's network (Correct answer)
- A government-licensed appraiser
- A corporate HR representative
Correct answer: A pre-approved real estate broker or agent from the relocation company's network
Relocation companies maintain networks of pre-approved real estate professionals to ensure qualified, consistent service for transferees' home sales.
Question 4: What is the typical listing period an employee is given to market their home before the relocation company makes its buyout offer?
- 30 days
- 60 days (Correct answer)
- 90 days
- 120 days
Correct answer: 60 days
Most corporate home sale programs allow a 60-day marketing period before the employer or relocation company is required to honor the guaranteed offer.
Question 5: Which closing cost is the employer most commonly required to pay in a corporate home sale?
- Buyer's agent commission
- Real estate commission and customary seller's closing costs (Correct answer)
- Home inspection fees paid by the outside buyer
- Homeowner's association transfer fees only
Correct answer: Real estate commission and customary seller's closing costs
Under corporate home sale programs, the employer typically covers the real estate commission and customary seller-side closing costs as part of the relocation benefit.
Question 6: What is 'equity advance' in home sale relocation benefits?
- A loan against the home's equity before listing
- An advance of the employee's estimated net equity paid by the relocation company before the home sells (Correct answer)
- A prepayment of the moving invoice
- A government grant for first-time movers
Correct answer: An advance of the employee's estimated net equity paid by the relocation company before the home sells
An equity advance provides the employee access to funds tied up in their home so they can purchase in the new location without waiting for the old home to close.
CRP Real Estate and Home Sale Programs 2
What does 'loss-on-sale' assistance cover in a relocation policy?