CRPA CRPA Corporate Relocation Policy & ERC Guidelines 2

Question 1

What is a 'guaranteed buyout' (GBO) in a corporate relocation home sale program?

Accepted Answer

An employer's commitment to purchase the transferee's home at the appraised value if it does not sell on the open market within a specified period

Answer

A GBO obligates the employer or RMC to buy the transferee's home at the appraised value after a defined marketing period, ensuring the transferee can move forward regardless of market conditions.

Question 2

Which of the following best describes a 'tiered' relocation policy?

Accepted Answer

A policy that offers different benefit levels based on the employee's grade, level, or position within the company

Answer

Tiered policies provide varying benefit packages—often more generous for senior executives—based on the employee's job level or relocation importance to the company.

Question 3

Under ERC guidelines, what action should a relocation appraiser take if the property has significant deferred maintenance that affects value?

Accepted Answer

Note the deferred maintenance, adjust value downward accordingly, and flag items that may require disclosure

Answer

The appraiser must document deferred maintenance, reflect its impact in the adjusted value, and flag any items that could affect marketability or require seller disclosure.

Question 4

What does 'homesale assistance' typically include in a comprehensive corporate relocation policy?

Accepted Answer

Appraisal coordination, marketing assistance, equity advances, and a guaranteed buyout provision

Answer

Homesale assistance is a bundled benefit covering appraisal services, marketing support, potential equity advances, and a buyout guarantee to facilitate the transferee's home sale.

Question 5

A 'lump sum' relocation policy differs from a traditional policy primarily because:

Accepted Answer

The employee receives a fixed cash amount and manages relocation expenses independently without program administration

Answer

Under a lump sum policy, the employer provides a predetermined cash amount and the transferee is responsible for managing and spending it across all relocation-related expenses.

(CRPA) Certified Relocation Professional Appraiser Practice Test

(CRPA) Certified Relocation Professional Appraiser Practice Test

CRPA CRPA Corporate Relocation Policy & ERC Guidelines 2