CRP Real Estate and Home Sale Programs

Question 1

What is a 'Buyer Value Option' (BVO) in corporate relocation?

Accepted Answer

A program where a relocation company purchases the home after the employee finds an outside buyer

Answer

A discount given to employees buying homes in the new city

Answer

A government-backed mortgage program for relocating employees

Answer

A fixed buyout price set by the employer

Question 2

Which home sale program offers the employee a guaranteed purchase price based on an appraised value?

Accepted Answer

Guaranteed Buyout (GBO)

Answer

Buyer Value Option (BVO)

Answer

Amended Value program

Answer

Direct Reimbursement program

Question 3

Under the 'Amended Value' home sale program, what triggers the amendment?

Accepted Answer

An outside buyer's offer that exceeds the appraised value offer

Answer

A change in interest rates

Answer

A second appraisal ordered by the employee

Answer

The employee's request for a price review

Question 4

What is the primary tax advantage of a BVO program compared to direct reimbursement of loss-on-sale?

Accepted Answer

The transaction qualifies as an employer home purchase, avoiding taxable income on the sale

Answer

The employee receives a larger check

Answer

The employee is exempt from capital gains tax

Answer

The employer can deduct the full home value

Question 5

How many independent appraisals are typically required to set the buyout offer in a corporate home sale program?

Accepted Answer

Two

Answer

One

Answer

Three

Answer

Four

Question 6

An employee who turns down the guaranteed buyout offer and sells on the open market for more will typically receive:

Accepted Answer

Only direct cost reimbursements under direct reimbursement provisions

Answer

Nothing additional

Answer

A broker referral fee from the relocation company

Answer

A supplemental payment equal to the difference