RSC Home Sale, Purchase & Housing Assistance 3

Question 1

Which scenario best describes a 'Buyer Value Option' (BVO) homesale program?

Accepted Answer

The RMC purchases the home only after the employee has found an outside buyer

Answer

Under BVO, the RMC steps into the transaction only when a buyer is already under contract, taking title briefly to facilitate the tax-free benefit.

Question 2

A transferee is in a community property state. Why is this legally significant for a relocation homesale?

Accepted Answer

Both spouses must sign the deed and homesale agreement even if title is held in one name

Answer

In community property states, both spouses hold an ownership interest in marital property, so both must sign conveyance documents for the sale to be valid.

Question 3

What is the ERC-recommended minimum number of appraisals required to establish a guaranteed offer under the standard homesale program?

Accepted Answer

Two

Answer

ERC guidelines require at least two independent appraisals so the guaranteed offer reflects a reliable, averaged market value rather than a single opinion.

Question 4

Under a corporate home purchase program, what does 'points assistance' typically refer to?

Accepted Answer

Employer payment of mortgage discount points to reduce the employee's interest rate

Answer

Points assistance is when the employer pays mortgage discount points on the transferee's new loan to lower their interest rate and reduce monthly payments.

Question 5

Which IRS tax treatment applies when a company purchases an employee's home through a Guaranteed Buyout (GBO) program?

Accepted Answer

The transaction is generally tax-advantaged because the company, not the employee, sells to the outside buyer

Answer

In a properly structured GBO, the company takes title and resells the home, so the employee is not the seller of record and does not recognize taxable gain on the resale.

(RSC) Relocation Specialist Certification Practice Test

(RSC) Relocation Specialist Certification Practice Test

RSC Home Sale, Purchase & Housing Assistance 3