RELOCATION OREINTATION
For Crye*Leike Affiliates
` Contents
1. Chapter One - General page 4-6 a. Objectives b. Role of Relocation Division c. General Information
2. Chapter Two – Resources pages 8-24 a. Metro E Guide b. Relocation Assessor Cost of Living c. National Van Lines d. Marketing Materials e. Relocation E Cards f. Forms, Topics, & ERC portal g. Training Programs h. Source of Business – Referrals i. Leading Real Estate Companies of the World® i. Luxury Portfolio ii. RELO Home Search
3. Chapter Three pages 25-44 a. Outbound Referrals b. Leading RE c. Criteria for Adding your market area to our membership d. What’s needed to send an outbound referral e. Commission Split of Outbound referrals f. Who to call g. Tips for finding Outbound Referral Sources
4. Chapter Four pages 47-53 a. Inbound Buyer & Renter Referrals b. Listing Referrals c. Other Referrals d. Assigning Referrals e. Closing Referrals f. Costs of Relocation
5. Chapter Five pages 54-59 a. Registration Process b. Relocation Alert Memorandum
6. Chapter Six a. Exhibits pages 60-137
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CHAPTER ONE
1. Objectives 2. Role of the Relocation Division 3. General Information
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Objectives
An overview of all the resources the relocation division has available for you.
Provide you with information and knowledge for a better understanding of the relocation industry to enable you to more successfully work with relocating employees.
Educate you on our processes and the Relocation guidelines (Policies and Procedures)
Describe the steps involved in making relocation referral assignments. And the criteria required for qualifying for those assignments.
Explain the Outbound referral process and describe how it works, and what’s in it for you.
Provide insights into the unique issues of relocating buyers and sellers.
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ROLE OF THE RELOCATION DIVISION
The purpose of the Relocation Division:
To generate business (buyers/sellers) for our associates through our Broker network, Leading Real Estate Companies of the World™, corporations and Relocation Management Companies.
To assist associates to successfully place buyers and sellers with real estate brokers in other areas and to follow-up and collect referral fees as closings occur.
To develop and provide informational materials for use by sales associates to be used as a listing and FSBO prospecting tool.
To conduct Relocation training programs to aid our sales associates in their business.
To establish rapport with and provide information to potential transferees prior to placing referrals with sales associates, and qualify transferees for the sales associates
To conduct ongoing client relations with Relocation Management companies; corporations; and our broker network to continue receiving business.
To ensure quality service by overseeing sales associate performance, follow-up, and communications.
To be a resource and advocate for the transferee and the sales associates.
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CRYE-LEIKE® RELOCATION SERVICES
Commits to maintaining the various memberships necessary to secure our relationships within the relocation industry by:
Paying all annual fees and dues
Attending conferences and learning seminars
Providing training to associates stipulated by the management companies we represent (preferred broker programs); for example, SIRVA Relocation requires extensive training for SIRVA Team members
Keeps Crye-Leike‟s Relocation division‟s name in front of the industry by winning numerous awards in several categories
Makes available a Relocation staff to assist you with client registrations, destination and departure referrals, and offer advice on relocation issues that you may encounter
Conducts sales associate relocation training throughout the year, including BMA (Broker Market Analysis) Workshops
Regional Relocation Division assigns, on an average, almost 2500 referrals annually
Places and monitors hundreds of Crye-Leike® sales associates‟ Outbound Referrals, resulting in an average referral fee to the sales associates of $900
Offers a Metro e-Guide CD to which you can add your area for a small initial charge and a quarterly maintenance fee. Your agents can also customize the CD.
Provides, free of charge, Cost of Living comparisons between most cities in the country
Offers national van line discounts to pass along to your clients & customers
Extensive Marketing of our company and Relocation services
Develops Corporate Business which generates referrals
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CHAPTER TWO
RESOURCES
1. Metro E Guide 2. Relocation Assessor Cost of Living 3. National Van Lines Discounts 4. Marketing Materials 5. Relocation e-cards on CL intranet 6. Forms, Topics, & ERC portal on CL intranet 7. Training programs & materials 8. Source of Business - referrals 9. Leading RE i. Luxury Portfolio ii. RELO Home Search iii. Inside/ Institute
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Metro E Guide Newcomer area information on a CD
You can also have this customized for your company, individual sales associates, even a company client, etc.
If you are interested in having your area added, I’ll find out what it would cost and let you know.
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Cost of Living analysis available
BY
Compare any two destinations in a very detailed report including:
Consumables Transportation costs Health Services Goods and Services Housing Utilities/Property tax Income and Payroll Taxes Miscellaneous COL% of Base City COL % of U.S. Average Estimated Home Value
This is a FREE SERVICE From Crye-Leike RELOCATION SERVICES
Note: Order form & sample are in the Exhibits section
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National Van Lines Discounts
If your customers book a move – you’ll receive a referral fee!
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` MARKETING MATERIALS
On the left is a brochure that can be used in soliciting listings or in listing presentations.
On the right – a brochure that is for soliciting outgoing referrals, it notes the free services that you as a licensed Realtor® can offer: Free community and school information packets; Free cost of living comparisons Free temporary rental housing assistance Free referral service to match your needs with a real estate agent Discounted rates with national van lines Mortgage programs for relocating families
You have an order form in the Exhibits section
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Referral E Cards on Crye-Leike Intranet
http://intranet.crye-leike.com 1. Sign in 2. Go to tools 3. E-card builder 4. Referrals
Great prospecting tool – FREE CARDS/ COSTS NOTHING TO SEND!
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Relocation Forms & Topics On the Crye-Leike Intranet
Sign on to the intranet - http://intranet.crye-leike.com Click on General tab Click on Divisions - Relocation tab
(a) Agent profile form (b) Relocation Alert Memo (c) ERC BMA form portal (d) and more…
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Certified Relocation Associate (CRA) Training Program
Working with Relocating Buyers and Renters
How to Prepare the ERC BMA
Servicing the Relocation Listing
These courses are taught at: Success Real Estate School, 890 Willow Tree, Suite 7, Cordova, TN 901-360-0854 http://www.successrealestateschool.com
Each course is approved for 3 hours of Tennessee continuing education credits
We’ll be working on webinars for these courses in the next few months and will let you know when they are available.
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Training Materials for your use
In the exhibits section there are some relocation training materials for you to use with your sales associates.
1. Sales Associates Relocation Guidelines – Including general information about Crye-Leike Relocation Services Policies on Receiving Inbound referrals Policies on Sending Outbound referrals Registration of their clients and customers with whom they are working The CRA training program Obligations regarding referrals when terminating.
2. Relocation Policies and Procedures 3. Preferred Sales Associate Program Brochure 4. Rental Assistance Information 5. Glossary of Relocation terms 6. Contact information for each Regional Relocation Division
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REFERRAL SOURCES
Relocation Management Companies (3rd Party Companies) SIRVA Weichert/WRRI NuCompass Mobility Cartus Brookfield Global Relocation Services Paragon Decision Resources RDI (Relo Direct, Inc.) Prudential Focus Relocation, Inc. And many others
Corporations with In-House Relocation Departments CarMax Relocation Home Depot Nationwide Insurance State Farm Insurance & Others
Real Estate Companies Leading Real Estate Companies of the World™ our Network Brokers Other Brokers outside our network
Corporate Clients - Crye-Leike Relocation Services’ clients ServiceMaster Family of Brands American Home Shield AmeriSpec Furniture Medic Merry Maids ServiceMaster Clean Terminix TruGreen TruGreen Landcare
Crye-Leike to Crye-Leike Referrals
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Relocation Management Companies (aka 3rd party companies)
Relocation companies contract with corporations to manage the relocation of employees who have been transferred by the client, provide home finding programs, home sale assistance, and numerous other services listed below. Relocation companies usually have a referral network affiliated with their company, and they generally refer business to brokers in their network.
Marketing Assistance or Pre-marketing listings (Amended Value /Buyer Value Options Inventory listings (Buy –Outs) Home finding buyer/renter business Brokering mortgages Policy consulting Policy administration – Outsourcing Expense tracking Group move management International services Household good move management
Crye-Leike is the Preferred Broker for many of the relocation companies doing business in our market areas.
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In House Corporate Relocation Departments
Large corporations who move a large number of employees annually and whose culture is that of “taking care of their own”, will have relocation departments set up to manage the business of relocation. Sometimes these departments will outsource certain aspects of the move, for example the Household Goods shipments, or the actual buy out process, and even the expense tracking and management, but will retain the home finding and the listing of the relocating employee‟s departure home functions.
Focus Relocation, Inc.
An affiliate company of Crye-Leike, Focus Relocation, Inc. is a stand alone relocation management company offering a full menu of relocation services to local and regional clients. Memphis and Nashville branches are combined into one corporation with relocation counselors, expense management personnel, client service managers and senior corporate sales people.
Preferred Sales Associate Program – see Exhibits section
Real Estate Brokers
Leading Real Estate Companies of the World® - The largest real estate network of leading real estate companies in the world, with nearly 600 top independent real estate companies with 5000 offices and 150,000 sales associates in 30+ countries. In 2009, the LeadingRE network members ranked #1 in units sold and sales volume among the top 500 companies in the country. More sales than any of the national franchise brands!
Other brokers with no network affiliation or who are with a franchise network, i.e. Coldwell Banker; Re/Max, Prudential, C-21; etc send business to Crye-Leike because of our reputation and long history within the relocation industry.
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Leading RE Broker member sold more real estate in 2009 than any of the National Franchise organizations. More than a Broker network, a Broker resource organization
Luxury Portfolio – Luxury property website ranking first in the most listings nationally & globally.
RELO Home Search – Over 500 top real estate companies around the world link their websites to RELOHomeSearch.com. The community information draws home buyers by the thousands from Google, Yahoo, bing, and other popular search engines. The site includes 3000+ real estate articles, school information, cost of living comparisons, home sale data, Google® mapping, and open house information
Inside and the Institute – Another great benefit in being a member of the Leading Real Estate Companies of the World® is the wealth of information of educational information and workshops on this website. Once you have become accepted as part of our coverage area, you can access this information.
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Criteria for Franchises of Contributing Member Companies Contiguous or Non-Contiguous Area
1. One year in business with a minimum of 6 months as franchisee of member to assure that systems are in place.
2. “Reasonable” market share for the cities claimed as territory, i.e. top 10 of all real estate companies ranked by the respective MLS or top 5 of the independently owned real estate companies ranked by the respective MLS. Additionally, if franchisee claims a recognizable portion of a major metropolitan area, market share would be based on area serviced.
3. Reputable company
4. Acceptable website
5. Office facilities suitable for a transferee to visit.
Once the above criteria have been met, if you want your coverage area added to our Service Area, you will need to complete a Broker Profile including a Service Area Information sheet, which we’ll provide. You will also need to sign the “Leading Real Estate Companies of the World™ Relocation and Referral Agreement” and our “Crye-Leike Relocation Services Agreement”.
Crye-Leike Relocation Services will submit your application to LeadingRE to have your coverage areas added. There is a fee involved and we’ll discuss this at the time of the submission.
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CRYE-LEIKE TO CRYE-LEIKE REFERRALS
Company Wide sales associate network of over 3000
Send and Receive referrals from your fellow Crye- Leike associates
Make yourself known to other Sales Associates
Many, many referrals go back and forth among our sales associates
These do not necessarily have to go through the Relocation Division
There are no fees due to Relocation on these referrals
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Advantages of Relocation Business
Relocation represents a tremendous opportunity for sales associates to generate and receive referral business.
On the Positive Side: Referral business is extremely desirable because sales associates work with people who have an immediate need. They are motivated buyers and sellers that can readily be converted into a sale.
Additional income can be earned by sending OUTBOUND REFERRALS. Offering to assist sellers with relocation services provides a point of difference and demonstrates professionalism.
A referral client is an opportunity to offer a real service to people who are experiencing tremendous stress inherent with relocation: the loss of a home, neighborhood, friends and family; time pressures; transferee and spouse career issues; impact on children, etc. It can be extremely gratifying to know you‟re making a difference by easing some of these pressures.
On the negative side: While pointing out the “advantages” of relocation, we do not hesitate to mention some of the disadvantages.
Working with transferees, or for demanding corporations, certainly is not for everyone. Because of time pressures and stress, transferees demand much attention and large hunks of an associate‟s time to find a home or market one. There is more paperwork and accountability to the Relocation Division. One of the concerns of many associates is the payment of a referral fee for the business. Unfortunately there is a cost for doing this type of business, and Crye- Leike Relocation Services must charge referral fees in order to pay for generating and maintaining this business.
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COMMON MISCONCEPTIONS
You can enjoy greater success in real estate if you understand and recognize WHAT RELOCATION IS…..AND WHAT IT IS NOT. Relocation means virtually any move from one real estate service area to another by a family or individual. Relocation does not necessarily entail a job transfer and does not have to be tied to a corporation of a third party relocation management company.
Sales associates, managers and relocation staff have different perceptions about the relocation industry. Many of these perceptions are incorrect. Eliminating misconceptions can lead to a better understanding of the value of relocation business to both sales associates and the company.
A few misconceptions:
1. Third party firms already control the business. That doesn’t leave much opportunity for others. Not all companies are contracted with a relocation management company. Not all employees are given the same relocation benefits. There may be tiers that only provide Household goods and no home sale benefits or home finding benefits. Only a portion of relocation that occur within the Fortune 500 companies are handled by relocation management companies (3rd Party co.); and there are thousands of moves every year within the smaller publicly-held corporations, the military, the government, private institutions and privately-held corporations where employees are free to choose the companies they want to assist them.
2. Each Corporation has only one relocation policy for all employees. Often there are many different policies with different benefits for the employees depending on employment level, and whether the benefits are for easting employees, new hires, or for group moves. Corporations offer various benefits packages or tier levels in many cases and may adjust the components at any time. It’s important to discuss benefits with EACH employee regardless of how many times a sales associate or the company has assisted that corporation in the past.
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Marketing to Referral Sources For Crye-Leike Sales Associates
Crye-Leike Relocation Services markets in various ways to generate referrals for our sales associates:
Direct Mail 4th of July Thanksgiving – Crye-Leike Cookbook Internet and E-mail Market Data updates Promotion of market area via special events, etc. Attending Relocation industry conferences, seminars, etc. Leading RE Worldwide ERC Relocation company training events Networking Conferences Chamber of Commerce Economic Development Councils Advertising Navy Guide Chamber of Commerce Promotions Leading RE Spring conference Notebooks Hotel Key Cards Lanyards
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CHAPTER THREE SENDING REFERRALS
(OUTBOUND REFERRALS)
1. General Information 2. Leading Real Estate Companies of the World® 3. Criteria for Adding your Market area to our membership 4. What is needed to send an outbound referral 5. Commission Split 6. Who to call 7. Tips for Finding Outbound Referral sources
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SENDING REFERRALS (OUTBOUND)
As a licensed real estate agent, you have the privilege to refer business to other licensees anywhere in the country and be paid a referral fee. Referral fee programs are commonly used to generate additional business and income for real estate practitioners.
A referral fee is a portion of a broker‟s commission paid to a party that provided either a listing or selling prospect to that broker. Referral fees can be paid only to another entity holding a real estate broker‟s license, and can be generated on either the departure (selling), or the destination (buying) side of a move.
An outbound referral is a potential real estate transaction not in the service area of your company. This referral can be from anywhere to anywhere, not necessarily from your market area. Take a look at these scenarios:
One who is relocating from one city to another and who has given permission to be referred for real estate assistance (home selling and/or home buying) One who is moving out of the broker‟s market area in need of home buying assistance One who needs to sell their home, which is located outside of the company‟s market area One who is moving from one city to another completely outside the broker‟s market area Basically …anyone who needs real estate assistance and has agreed to be referred.
Examples:
Crye-Leike® Agent to Crye-Leike® Agent – When a sales associate has a referral to place in an area where there is another Crye-Leike® office, the sales associate may place the referral with another Crye- Leike® sales associate directly without going through the Relocation
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Division. No fees are due to the Relocation Division. Associates are encouraged to use a written referral agreement between the participating associates. (For your convenience there is a sample referral form in the back of this section)
NOTE: Crye-Leike’s broker contract with LEADING REAL ESTATE COMPANIES OF THE WORLD™ states that all referrals to any other real estate company must go through the network and the administration fee paid. (See Policy & Procedures)
Placed with the Relocation Division – Whenever the sales associate has a referral that cannot be referred directly to another Crye-Leike® sales associate, the referral should be placed through the Relocation Division. Every effort will be made to place the referral with a Leading Real Estate Companies of the World™ broker network member, or to a requested non-network broker.
Other information:
Qualified Referral – One in which the person referred is a willing buyer or seller with a need for the services of a real estate broker in the destination market. The person is aware of the referral.
What information is needed? 1. Customer‟s permission 2. Correct Spelling of name 3. Address 4. Employer
The relocation division prefers to place the outbound referral to another Leading RE member, however we recognize that you may have relationships with non-network brokers and we will honor your requests to place your referral with the broker of your choice.
Note: Sales Associate Immediate Family Member referrals will be placed in the same manner as all other referrals, and the Leading Real
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Estate Companies of the World™ network administration fee will be applicable, but there will be no Crye-Leike® Relocation fees collected.
Why is Sending Outbound referrals so important?
Universal law of attraction – we receive what we send out!
You provide total service to your customer/client It demonstrates Your company‟s national/global connections It expands your sphere of influence The more referrals we send out – the more we receive! Every year the number is almost the same. Sending referrals earns $$$ in your pocket. Your customers/clients will appreciate the “go the extra mile” effort & service. To be eligible to receive referrals from Crye-Leike Relocation, you must send referrals!
Do’s and Don’ts of Outbound Referrals
Remember, no experience is necessary, new sales associates can earn money just by referring business to other Realtors® . Do Earn dollar$ immediately
Do offer referral services to any prospect
Do provide the extra service to your customers and clients: o Area information packages o Cost of living analysis o Realtor® assistance in any destination o An advocate for the customer in the new location
Don’t have to be a Million Dollar Club member
Don’t have to have years of experience
Don’t need any designations
Don’t be afraid to JUST ASK
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Nearly 600 Independent Real Estate Firms - including 40% of the top 100 Brokers in the nation 5000 + Offices 150,000 Sales Associates 30+ Countries Internationally The largest real estate network of leading real estate companies in the world Selling more than $240 Billion in 2009 More home sales above the $1 million price point than any other network.
New Luxury Portfolio website featuring the world’s best luxury properties from the Leading Real Estate Companies of the World™ Fine Brokers www.luxuryportfolio.com
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` OUTBOUND REFERRALS
TO REFER SOMEONE
WE NEED:
The Prospects’ Permission
Their Names, Address and Phone #’s
Destination / Departure Locations
Completed Outgoing Referral Form
(Optional)
Just call us we’ll do the rest!
When the average outbound referral takes less than an hour’s effort ……... And the average referral fee earned by our sales associates in 2010 was $900…... Which equates to $900 per hour!
It’s the easiest money you’ll ever make
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The Outbound Referral Process
1. The Crye-Leike Relocation Referral Specialist receives the information from the sales associate
2. Calls the transferee, introducing themselves, the company, & the service
3. Chat‟s with the transferee to determine wants and needs
4. Places the outbound referral with a LeadingRE member – or to the sales associates requested Broker
5. Sends confirmation to the sales associates with contact information on the assigned sales associate
6. Follows up regularly with the referred company
7. Keeps the referring sales associate informed of the updates
8. Receives closing HUD and referral fee check
9. Disburses closing & sends the Franchise
10. Sales associate receives his/her referral check
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Example of a Referral Commission Split for Franchisee
OUTBOUND REFERRALS:
Sale Price: $ 250,000.00 X 3% Commission: $ 7,500.00 X 25% Referral Fee Paid to Crye-Leike $ 1,875.00 From Referred Company
35% fees paid to Leading RE Network $ - 656.25 & Crye-Leike® Relocation Services
Remainder per your company’s $ 1,218.75 Brokerage split policy:
The average referral fee received in 2010 by our sales associates was $900
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GENERATING OUTBOUND REFERRALS
$ Just ask! o Anytime someone has a real estate need that you can’t help with, refer them to someone who can
$ Send e-cards to your sphere of influence o Regularly keep in touch with your SOI o Send e cards that remind them you can help anywhere they may go
$ Use the “Wherever You’re Going Brochure o Use direct mail to SOI o Use in Open Houses o Solicit FSBOs
$ Review the Tips for finding Outbound Referral Sources
$ Hold contests
Tips for Outgoing Referral Sources
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THE OBVIOUS Your next presentation may or may not result in a listing, but you can salvage a referral…
THE DEPENDABLE Relatives! Isn‟t it about time to send Aunt Bertha a note – how about nieces and nephews, now married and fast approaching the home buying age? Do they know you can help them – even from another part of the country?
THE LOYAL Don‟t disregard Marge from the “old neighborhood” even though she might have borrowed a little too much or peeked out the kitchen window a little more than necessary…initiating and MAINTAINING contacts is the name of the game!
THE BURIED Dig out your Christmas card list from 5 years ago when postage rates allowed a more liberal mailing list. Do all those people know you are now a real estate associate and ever so willing to help them?
THE FORGOTTEN Call your previous employers – catch up on the latest office gossip and plant a seed for future clients as well as referrals.
THE BORED Visit retail shops during “off hours”. Successful sales clerks will always be ready to chat when they are bored. Daytime employees are generally older and better prospects than the part-timers in the evenings. These people are also fair targets for recruiting.
THE ADVERTISERS A large percentage of garage sales are the direct result of a transfer. Moving sales are a dead giveaway. Actually attending the sale and offering referral services on a direct basis may prove more effective and worth your time. Who knows, they may be selling the “white elephant” of your dreams…
THE SPOUSE “To Love, Honor, Cherish and Share Business Contacts?” – why not? Your spouse‟s contacts could be a gold mine of referrals. Two heads are better than one.
THE CURL, SET Hairdressers and barbers come in contact with unruly hair and talkative mouths daily…but maybe not enough attentive ears. Sharpen your listening skills to be able to hear over hair dryers and ask your barber/beautician if
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he/she knows anyone moving…the answer in most cases will be YES!
THE DING-DONG Avon ladies, Fuller Brush salesmen, or any door-to-door tradesperson with regular clients will know of moves in your area…and where there is moving, there is referral potential! It might be worth a $5.00 bar of soap each month to keep that ding-dong going at your door.
THE CHEAPSKATES Free advertising is a rare bird indeed. However, take a look at the bulletin board in your favorite grocery store…potential for listings, buyers and REFERRALS!
THE ALL-KNOWING Secretaries of major corporations are always “in the know” of moves and BOSS‟S BOSS promotions within the company. While her boss may be time-tied, she may take the time to tell you what you want to know.
THE CAT-OUT-OF-THE-BAG Children are known to let the cat out of the bag…and to whom? More than likely, their teachers and their peers. Schoolteachers may have more knowledge to share than the three R‟s…and your own child may be a significant key to potential clients and referrals.
THE BIG TICKET SALES Club memberships, furniture sales, appliance sales, all indicate that perhaps the owner is leaving town. With one phone call, isn‟t it worth asking?
THE BACK DOOR INTRO FSBO‟s have their defenses up when the fourth Realtor calls and asks for the listing…make your approach as a service, a referral service to help them on the other end. They will be so impressed…history.
THE NON-EXPIRED Keep your eyes peeled for the expired listing to come through the potential of expired computer…the listing may have expired, but the referral may be very much in the running.
THE PIOUS The church member who belongs to all the committees, including the yearly pledge and membership committee. He knows all about the people you both know, especially who is being transferred, leaving the area, and retiring to Sun City. AMEN!
THE ORGANIZER The neighbor you depend on to let you know about a zoning change, the change in the bus route, the school
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closing, why the street is torn up. Not only is your neighbor in the know about civic matters, but also in the course of getting in on protest meetings, gets to know a lot about the neighborhood. He‟s probably heard many times, “Well, I‟m moving so I don‟t care what they do in this neighborhood anymore!” And there is your cue.
THE MONEY MAN Your friendly banker knows when accounts are closed out or when funds are to be transferred.
ATTORNEYS Your attorney knows a lot of information that won‟t fall into the “confidential” category –particularly divorce attorneys.
THE BIG MOUTH Isn‟t it about time for that six-month check-up with your dentist? He talks with people all day every day, even though some of the responses might be a little mumbled…he just might be able to “fill you” full of referrals.
THE BIG TIP Tired of bad service and still having to leave a tip? Let your favorite waitress “tip” you instead…she‟ll be one of the first to see a recently informed transferee-to-be crying into a beer…
THE STRIKE IT RICH People operating bowling alleys or recreational centers know when someone has quit a league or activity due to relocation – “cue” in on these chatty people…the exercise couldn‟t hurt anyway.
THE SLIM & TRIM Health spas usually cater to a more elite clientele…a “healthy” referral from one of the spa counselors who hears every bored housewife story could be profitable.
THE MEDICINE MAN Pharmacists hear about all kinds of diseases…including the dreaded “Oh my God, we‟ve got to move again, give me some tranquilizers” disease. Maybe you can convince him that a good Realtor is the best cure.
THE TAILOR MADE Important interviews require classy clothes…maybe even a new suit. Your tailor could be a valuable source for referrals.
THE TICKER TAPE Let your stockbroker help you in the referral department. His referral leads might allow you to purchase more stock from him.
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THE REFERRAL IN-OUT Don‟t miss out on checking with your incoming buyers as to anyone else from their origination city who is moving...not only to your area, but anywhere for a referral.
“WILL THAT BE ALL?” The check-out lady at your local grocery store keeps tabs on the regulars…next time she asks if there will be anything else, don‟t miss your cue.
OPEN HOUSE- As you show your open home to all those prospective buyers this Sunday, don‟t forget to mention the relocation services available.
FILL „ER UP/FILL ME IN Gas stations usually have an abundance of regular customers. Regular customers mean more than the average amount of chit chat, which could mean valuable referral leads.
THE PTA POTENTIAL Many times, transferees are of the age to have children in schools…schools with PTA‟s of course! Get involved in your local PTA for all kinds of leads…listings, buyers, REFERRALS!!!
TRUCKIN‟ FOR A REFERRAL Moving companies obviously know who is transferring…another dead giveaway that is somehow overlooked! Make contact with one of the many moving companies, van lines, etc. Local moves may bring a client for a listing, city-to-city moves, a referral!
THE GI JOE REFERRAL Military personnel officers shift other military persons all over the country on a regular basis. Wouldn‟t it make their job so much simpler to have a good relocation service to assist?
THE CAP AND GOWN College professors move in and out of college towns regularly to upgrade their professional status. With so many colleges in your local area, it might be worth the time to hit the books with the personnel director at one of them…or two of them…or…
THE UNCLE SAM REFERRAL Government agencies are notorious for moving families all over the country. If your area has its share of government agencies, shouldn‟t you get a share of the business? All it takes is a good contact “in the know”.
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THE CURE-ALL REFERRAL With the vast number of people involved in the medical field, surely you must have overlooked an acquaintance that might introduce you to the personnel manager of one of the local hospitals. It is common knowledge that doctors usually move on an average of every two years during the early part of their careers.
ON THE ROCKS, PLEASE Social situations, whether in a bar, someone‟s party, or even a cake and punch reception, offer you the opportunity to make people aware of your business…and services…and relocation abilities.
THE PEOPLE PASSERS Get to know the personnel manager at any major corporation. They are one of the first to know about transfers…in and out.
FIX „EM UPPERS Handymen, carpet cleaners, painters, etc., may be repairing or improving a home to be put on the market in the near future. Their clients could be yours.
THE JOINERS Civic and volunteer organizations involve many, many people in order to function. The odds are that one or more of these people are moving or know of an upcoming move.
LET THE DUES PAY YOU Homeowner associations throughout the city will be one of the first notified of an upcoming move. Normally, one of your own neighbors is in charge of the dues collection for the local homeowner association. Keep in touch with your neighbors, homeowner association or not…
THE BITE THE BULLET “Bored duty” getting to you?…be brave, pick up the phone book and make a few calls offering a referral service to the lucky person receiving your call…if they are not interested, maybe they know someone who might be.
“CHECK-IN” YOUR HAND Hotel and motel registration clerks chat with most of their temporary residents. And what a service they would be giving the out-of-towners, soon-to-be locals by furnishing them with the name of a reputable, professional Realtor!
HEAR YE, HEAR YE Small towns or subdivision within larger cities usually have a local publication with all the latest on the residents of that area. Why wait to hear the news with the rest of the world; call the secretary or reporters at the paper for the “in” story.
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HELLO, MY NAME IS Many associates do not feel comfortable wearing a nametag. However, without your company‟s name tastefully displayed, you may just look like another businessperson. You could be missing out on the average Joe that happens to be in the same elevator, the same line, the same restaurant, etc., who would strike up a conversation about the fact that you are in real estate and his brother is thinking about selling his home…and on and on. Without your nametag, the conversation may never get started.
“PLAY IT AGAIN SAM” Another round for my new friend, Mr. Bartender and me. Where‟s Joe and Sam these days? Out of town! Checking on a new job, are they? LIGHT BULB FLASHES ON! Another referral.
ON CLOUD NINE Call a newlywed! Check out the marriage licenses in the newspaper and criss-cross them for a phone number.
BREAD AND WATER LINE Employment agencies deal with potential relocating clients as well as those looking for a local position. Having your business cards close at hand for the employment counselor to distribute can help bring new business to you and possible repeat business to the counselor down the road.
PAST BRINGS PRESENTS In your regular contact with former customers, don‟t forget to mention your abilities in the relocation field both for your area, and all other areas of the country.
SCATTER FOR WEALTH This week, place a scatter ad in the newspaper advising that you have access to housing information all over the U.S.
THE HAS BEENS Ex-agents still have many contacts from their experiences as a real estate associate…why let them go to waste?
THE OUT-OF-TOWN Local newspapers can generate many leads…but what about out-of-town newspapers? Our relocation services can encompass activity both in and out of the area. All the opportunities for leads can be expanded greatly by checking through an out-of-town newspaper.
THE PUNT, PASS & KICK Coaches of youth sports have regular contact with many families in a particular geographic area…check out your farm area and locate the coaches.
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23 + 137 + 782 +++++ Most of us rely on an accountant to make it through the tax season. In fact, many accountants are the inspiring source for investor buyers, for both local and out-of-town real estate purchases. Herein lies potential.
TOO LOW, JOE Fee appraisers receive cold calls by inquisitive homeowners as to the actual value of their property…could they be thinking of selling their home? Keep close tabs on those appraisers you know.
BOW-WOW REFERRAL Just as personal health/dental records are important to obtain before leaving for a new city, Daisy-Dog needs her records too. Not only medical history, but also vaccination verification from the local vet will be necessary.
SWINGING SOCIALITES Country clubbers keep busy chatting while on the green, the courts or at the pool…keep your ears open for a new home they intend to buy. And those selling the goods may be moving themselves…to another city…instant referral!
THE STORED REFERRAL Storage lock personnel are not only storing furniture, but also have locked away information about their clients and why the storage is necessary…haven‟t found a home yet? Need a better agent on the selling end? Referral!
YOU MUST PAY THE RENT, (and a pull on the handle bar mustache) Foreclosure managers in the mortgage banking business solicit the help of “favorite” Realtors…many times mortgagors call with more than a sob story; sometimes it‟s a plea for help to assist in getting the home on the market. Not only can these foreclosure personnel assist in obtaining a listing, but many times can advise of a “good deal” for any investor buyers you may have. In addition, the mortgagors will contact the mortgage company for loan balances when they are contemplating a move or for an assumption statement for the same purposes…REFERRALS!
THE STICK UP Have your spouse and friends post notices at their jobs indicating free information about other cities and your immediate access to such information. Somebody who knows somebody who‟s related to somebody may be interested.
STOCKING UP ON Moving requires plenty of foresight…i.e. boxes to pack. Many people will contact the stock boy at the local
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supermarket to ask that he save strong boxes for them well in advance of the actual move.
SITTING ON A GOLD MINE Babysitters know more than how to change a diaper when it comes to activity in the neighborhood. One referral could cover 6 month‟s babysitting fees…don‟t forget to ask next time.
“AULD LANG SYNE” Dig out your old yearbooks from school and your reunion booklets…there will be those you wonder “whatever happened to?” Don‟t wait to hear from them. You can find current addresses through mutual friends. Drop them a note letting them know “whatever happened to you.” Aside from catching up on old friends, you can pick up a possible referral.
THE UNAWARES Those contacts that you know are in real estate but don‟t know the full scope of our relocation service – do they have a brochure that explains the FREE SERVICES?
UP, UP AND AWAY Keep your ears open when you travel, especially on the return flight. Many travelers who are contemplating a move will be discussing such.
WE TRY HARDER Car rental agencies deal mainly with out-of- towners…whether here on business, pleasure, or to look at a new home, they may be valuable contacts. Incoming buyers usually have a home to sell…reverse referral.
SPIFFY CLEAN Maid services cater to an exclusive level clientele…the type of buyers and listings and referrals that are ideal. Don't limit your contacts to executive people only -–their "help” may be able to help you more than you think.
BLACK & WHITE & MOVED ALL OVER Major promotions are usually noted in the local newspaper. Sometimes the article will indicate a transfer to another office location. A note of congratulations with your business card and a brochure offering free relocation services might pick up a new listing and a referral!
RETURN ON INVESTMENT Postage these days is a major investment, but perhaps you would like a little more than an average return on it…in your next correspondence via mail to your farm area, include information on the relocation service.
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THE HOUSE THAT Builders, like Realtors, have their own avenue for referrals from other builders in other cities. A large percentage of those builders do not deal in resale, however. Keeping lines open with local builders may lead to listing referrals in other cities.
COFFEE, TEA OR REFERRAL? Travel agents initiate airline reservations and hotel accommodations for many large corporations who just might be bringing in personnel to review your area or sending out personnel to review another city in connection with a transfer.
THE GONE & FORGOTTEN Review your old files of previous clients that moved out of the area. Chances are that you have long forgotten about them. Send them a note and keep in touch while tactfully informing them that should they be transferred again, you can put them in touch with an effective agency to list their home and find a new one. Double referral!!
BE A PENNY PINCHER Make it a regular practice to call on managers of leading chain stores, for it is a normal practice to transfer young executives on a regular basis. J.C. Penney Company developed young talent by transferring them to assume greater responsibility every two years. Sears and Wards have transferred thousands.
THE PAPER CHASE Canvassing or farming an area will always pick up leads, but you can only travel so far and cover so much in the time you allot for farming. Expand your territory and recruit the services and knowledge of the newspaper delivery boys/girls. They know when a subscription is cancelled because someone is moving.
THE INSURANCE PREMIUM Your agent can be a premium to you if he lets you know who‟s canceling due to a move.
THE SEMINAR SPY Lately, there has been a rash of “How To Sell Your Own Home” seminars. While we all know the only effective way is to use a qualified Realtor, there are those people who believe they can market their own home. But, how can they obtain their own contacts in an unfamiliar city? Attending this type of seminar with our relocation services as your playing card will not only bring in referrals, but may increase your inventory as the “not so confident anymore consumer” realizes he needs your services as a Realtor in addition to the help you can give him in a new city.
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SOLD!!! TO THE LADY Auctions draw a variety of people, some of whom may be gradually obtaining major purchases for a new home they intend to buy. And those selling the goods may be moving themselves…to another city…instant referral!
THE EMPTY NEST Residents of more than 20 years in one home will probably have all their children out of the house and their needs will adjust accordingly. Check your criss-cross directory to locate these “old birds” and follow-up. (Yes, the criss-cross does provide that information).
HEAD „EM UP, U-Haul agents deal with moving people daily, sometimes locally, and sometimes out-of-town. Load up on information from them and move away with a referral!
THE “ANYTHING YOU CAN It‟s true! Why keep those “better” ideas to yourself? We will be happy to add your suggestions to the list. Just call or write!
THE FREE MAILER Remember to use the free “You are someone going places, and I „m someone who can help you get there” brochure from the relocation division. Mail it out on an “un-special” holiday – Groundhog Day, for example to your farm area. You never know when someone may be thinking of moving.
ASK, AND YOU SHALL Let clients and customers know you really want their referrals. If you don‟t ask, you don‟t get!
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It’s so easy! Just call or email your regional Relocation division:
Atlanta, GA – Metro Atlanta area Judy Stocks - 866-401-8228 [email protected]
Chattanooga, Knoxville, & E. TN ; North GA, and Huntsville, AL Carol Nall – 800-446-2830 [email protected]
Little Rock, Central & NW Arkansas Tammy Cheney – 866-253-5333 [email protected]
Memphis & W TN; Mississippi & E. Ark. Carol Stec – 800-243-9922 [email protected]
Nashville, Middle TN & Kentucky Jan Williams – 800-373-8893 [email protected]
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1. Inbound referrals 2. Listing referrals 3. Other Referrals 4. Assigning Referrals 5. Closing Referrals 6. Costs of Relocation
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INBOUND REFERRALS
REFERRALS CAN BE: Buyers Renters Listings (i) Broker to broker listings (ii) Relocation Management Companies a. Marketing assistance b. Inventory International Resettlement Service
THE PROCESS OF MATCHING THE SALES ASSOCIATE WITH THE TRANSFEREE
Inbound referral is received:
The referral specialist counsels with the transferee to determine their wants and needs
Involves the Broker Manager in the Associate Process
Selects the Sales Associate based on the criteria gained from this needs analysis and Crye-Leike Relocation‟s general criteria
ASSIGNING INBOUND REFERRALS
Inbound Referral manager receives the referral, usually by telephone. Then contacts the transferee to introduce Crye-Leike® and offer whatever assistance they need. A counseling or interviewing process ensues, with the express purpose of determining the wants and needs of the potential buyer or seller - area of interest, special needs, commute time, etc.
The inbound manager first checks the agent registration system, then enters the criteria necessary for sales associate to best assist the transferee, matching personality, experience, training, etc. using the “Agent Profiler” application of the Relocation Division‟s software. From the list of appropriate sales associates, the inbound manager then determines whether
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` the associate has been participating in the outbound referral program, and their average conversion rate. The Broker/Owner or designated manager may be contacted for recommendations of appropriate associates. Inbound Manager then assigns associate.
Listings: The Listing Manger receives the referral from a Relocation Management Company, then checks the agent registration system and assigns from the CRA list. The Broker/Owner manager may be called for recommendations from this list.
Corporate: Same process as above with the exception of special corporate teams may be used per the corporate clients‟ wishes.
Associate Teams
CRA (Certified Relocation Associate) Must have completed all three of the Relocation Training courses Corporate Client Teams Some corporate clients have requested certain associates to handle their business. Relo Management Co. Teams Some Relocation companies require special training and limit the number of associate receiving this training. Dual Licensees Have licenses in more than one state, i.e. Mississippi and Tennessee licensed.
International Resettlement Have attended the International Resettlement Training Rental Have expressed an interest in working with relocating renters
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SALES ASSOCIATE CRITERIA FOR RECEIVING INBOUND REFERRALS
Associate should:
1. Have the Crye-Leike® Relocation Services’ Certified Relocation Associate designation (CRA)
2. Participate in the outbound referral program.
3. Have on file in Relocation a “Sales Associate Profile” describing their experience, expertise, special interests, etc.
4. Have a website, or a page on the Crye-Leike website
5. Have at least one year’s experience with minimum of 6 closed transactions in the previous year or manager’s recommendation.
6. Be available during time frame required by client; & have specific knowledge of the area:
Schools (Public, Private and any special programs needed) Shopping Places of worship Hospitals Parks & Recreation Commute times from airports, expressways, work location, etc. Fire & Police protection locations Other services as specified (swim and tennis clubs, golf courses, etc.)
NOTE: Associate may not refer client to another associate who services other areas of interest (different state, etc.) including one in the assigned associate’s own office. The Relocation Division must be notified of the change in search area and will make the additional associate assignment.
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7. Be willing to communicate with customers via e-mail; be willing to complete paperwork; and give updates as required by referring company and Crye-Leike® Relocation.
8. Have demonstrated good customer service skills in dealings with clients and maintain good conversion rates on referral business.
9. Associate must dress and conduct him or herself in a professional manner.
See agent profile form in Exhibits
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Sales Associate Instruction For Relocation Referral Clients
1. Thank you for accepting this referral. In order to assure an equal level of service for all transferees, the following procedures are to be followed:
2. Contact the transferee within 24 hours of receiving the referral. If you are unable to reach him/her, call me to let me know at 901.758.5660 or 1.800.243.9922.
3. If a conflict in scheduling or personalities occurs or if you feel you will not be able to provide complete service, call me to reassign the transferee.
4. Be sure the transferee has received a newcomer package, either your own print, or the Metro e Guide CD.
5. Stay in close touch with the transferee. If the property is a listing, give status updates each week and after every showing. If you are working with a purchaser, be sure to get their preferred phone number (cell) or of the hotel or residence where they will be staying during their home finding trip.
6. Reply promptly to the status update requests. Our future referrals depend on our providing excellent follow-up service.
7. When a contract is signed, a copy must be faxed to me (901.259-1025) within 24 hours, so that we can provide this information to the referring company.
8. When the transaction closes, please follow the attached instructions.
THANK YOU FOR HELPING US TO GIVE UNEQUALED CUSTOMER SERVICE!
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CLOSING PROCEDURES
Congratulations! You have a closing! When a referral closes, please forward within two business days*, a copy of the: 1. H.U.D. Statement 2. CLRS Commission Disbursement form 3. Your company check for the referral fee made payable to Crye-Leike Relocation Services
*Crye-Leike Relocation needs to disperse the referral fee with the proper documentation to the referral source to ensure timely notification and that proper payment policies are followed.
Example: Incoming Referral Split
$150,000 Sale Price
4,500 3% Commission Rate
2,025 45% Referral Fee to CLRS (CLRS pays the 35 – 45& referral fee to the Referral Source)
$2,475 55% Balance to your company
To be split according to your Brokerage policy
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CRYE-LEIKE® RELOCATION SERVICES COMMISSION DISBURSEMENT FORM For CRYE*LEIKE AFFILIATES
Relocation Referral – Commission Disbursal
Date Processed______
Sales Associate ______
Office/Franchise ______
Listing____ Purchase____ Date Closed______
Transferee’s Name______
Property Address______
City ______State______Zip______
Sales Price $______Gross Commission______%
Referred Side Commission $______= ______%
45% of action side commission $______payable to:
® Crye-Leike Relocation 6525 Quail Hollow, Suite 400 Memphis, TN 38120
® Crye-Leike Relocation Staff ______
Please return a copy of this form with your check. Thank you for working with this customer!
Crye-Leike® Relocation Office Use Only: Fee paid to referral source $______Fee paid to Crye-Leike® Relocation $______
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HIDDEN COSTS OF THE RELOCATION DIVISION
Referral Sources typically charge 35-40%
Remaining 5-10% must cover
o Preferred Broker & Membership fees o Conference attendance costs o Promotion & Marketing costs o Cookbooks o Other direct mailings/ email marketing o Advertising costs o Overhead
CLRS pays the cost of marketing for these referrals of business in order to bring business into your companies. We pay the costs to belong to the various organizations to network and be visible. We pay the costs of membership fees and relocation company administration fees. We manage the relationships with the referral sources to ensure we continue to be the first choice of the service provider in our market areas.
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CHAPTER FIVE
1. REGISTRATION OF CLIENTS
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REGISTRATION
WHAT’S THE DIFFERENCE IN REGISTERING & REFERRING?
Registering is designed to help protect our sales associates‟ commissions. The Relocation Division must have a way of knowing when it can accept a referral in good faith. If Crye-Leike Relocation knows a sales associate is working with a transferee or client, we will not accept a referral from any other source without checking with the registering agent.
Referring is the placement of a person as an outbound referral. You are “referring” real estate business to another real estate agent outside your market area.
For more information go to the Outbound Referral section in this guidebook. .
REQUIREMENTS TO REGISTER
Must be currently working with the prospect
Provide exact spelling of name, current address, and
Employer‟s name
Call your Regional Relocation Division (see contact info in Exhibits)
EXCEPTIONS TO THE REGISTRATION GUIDELINE:
Relocation Management Companies or 3rd Party Companies: If we are notified that your registered client must participate with a 3rd Party company program (Cartus, NuCompass, WRRI, GMAC, Prudential, SIRVA, etc.) in order to receive their relocation benefits, we will contact you to:
1) Ask if you are willing to pay the third party referral fee
2) If you choose not to work with the client, the referral will be placed with another agent.
Your listing with a transferee goes into buyout: Any and all agreements with the transferee become null and void. There is a new seller – the Relocation Management Company (3rd Party Co.). As long as the Relocation Company allows us to retain the
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same listing agent, you may be able to retain the listing on the inventory or 3rd Party commission split. The split is 45% referral fee and your company brokerage policy split.
Group Move: Crye-Leike® Relocation, through its preferred broker contracts with various third party companies, could be requested to manage a group move into or out of our service area. If you have registered clients involved with the group move the referral fee will be 45% off the top of the referred side commission and you will be on your regular split.
“AFTER THE FACT” REFERRAL FEES:
If you have a signed: 1) Buyer Agency Agreement 2) Signed Listing agreement 3) Executed contract to purchase
With a signed agreement as referenced above, under Tennessee law you are not required to pay the referral fee and the third party company cannot deny the transferee relocation benefits. If you have any questions call the Relocation Division.
Note: Please be aware of the Relocation Alert Memorandum (see Relo Alert Memo in the Exhibits section) detailing those corporations of which we are aware that will be charging a referral fee on their relocating employees. This Relocation Alert Memo is also on the Crye-Leike® Intranet.
REGISTERING A CLIENT When you register clients, you do so for your own protection. When you are working with an out-of-town client referred to you personally (not through Crye-Leike® Relocation), you should call us at 1-800-243-9922 or 901- 758- 5660 or email us at [email protected] and request that we register the client‟s name, city, state and employer.
If a broker calls to refer the client you have registered, we will check our files and refuse the referral. We will then call and give you a heads up. We‟ll share with you the fact that someone has tried to refer your client, that he is obviously planning a trip soon, and that you should contact him.
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Note: You must have had contact with the client in order to register them. If we refuse to accept a referral for a client you have registered, only to find out that you have never called him or that he is not planning to work with you, then we have lost a possible sale for the company and given it to your/ our competition. Further, if you have not maintained contact with the client, he may obviously feel no obligation to work with you.
Failure to register a client with whom you are indeed working with or planning to work with may result in your paying a referral fee. We have to enforce this rule because we only have 24 hours to refuse a referral from most of our sources of referral business. Sometimes we may not be able to reach a client within that time period, or our instructions may be to call in several days. If we did not have a registration system, we would never know whether to accept or reject a referral.
NON-REFUTABLE REFERRALS: The transferee may be required to work through a specific Relocation Management Company (or real estate ` company) in order to receive his/her relocation benefits from his/her employer. We will explain to the referral source, “It appears that we already have a sales associates working with that transferee, we‟ll call the sales associate and find out what is happening.” In these cases, we are not able to outright reject a referral. However, if you have the transferee registered, and you agree to pay the outside source referral fee, you will only be obligated for that fee and will owe nothing to Crye-Leike® Relocation. This protects your commission.
ALWAYS REGISTER YOUR PERSONAL CLIENTS WITH CRYE- LEIKE® RELOCATION FOR YOUR PROTECTION AND OURS!
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The attached “Relocation Alert Memorandum Update” is an attempt to help the Sales Associates understand and not be blindsided by referral fees that are required by some corporations and Relocation Management Companies on their employees‟ relocations. One way we can help our sales associates is through education and early disclosure. Many other real estate companies have similar lists posted. It is not meant to be a negative. It is meant to help the Sales Associate by giving them advanced knowledge of a relocation company‟s involvement.
CRYE-LEIKE® has spent considerable money and effort and has agreements in place with these Relocation Management Companies in order to secure the “affiliate, approved, or preferred broker” status. This “preferred broker” status affords our Sales Associates the opportunity for these Relocation Companies‟ business. We believe our Sales Associates would not refuse to pay a referral fee if they fully understand the ramifications to the transferee or to our company. Your help in explaining the “big picture” would be immensely helpful!
Crye-Leike® Relocation will refer the Sales Associate to this list whenever they register a client. The disclosure contained within it states that it is not all-inclusive and will be updated as needed. Our goal is to avoid any possible confrontations. In most of these situations, Crye-Leike® Relocation will not be earning any fees and has nothing to gain except to keep all CRYE-LEIKE® Sales Associates eligible for relocation company business. The Sales Associate will benefit by knowing ahead of time what companies will expect referral fees on their transferee‟s relocation.
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REGARDLESS OF A REQUIRED REFERRAL FEE, IT IS ALWAYS BETTER FOR THE SALES ASSOCIATES TO REGISTER CUSTOMERS & CLIENTS WITH CRYE-LEIKE® RELOCATION. THIS PRACTICE WILL ENSURE THAT THEY WILL NEED ONLY TO PAY THE OUTSIDE SOURCE REFERRAL FEE.
* The attached Memo is to be displayed prominently in your offices. The Relocation Alert Memo is also on the Crye-Leike intranet under the Relocation Division. Please call me if you have any questions! I would very much appreciate your help in explaining to the agents in the most positive way the reason for this list. As always I truly appreciate your support.
Thanks,
Jan Harbor
(Please See the Relocation Alert List Memorandum in Exhibits)
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` EXHIBITS
1. Cost of Living Form page 61 2. Cost of Living Report 62-70 3. Sales Associate Profile Form 71-72 4. Relocation Alert Memorandum 73-74 (Available on Crye-Leike Intranet under Divisions – Relocation – Forms) 5. Training Materials a. Sales Associate Relocation 75-80 Guidelines b. Relocation Policies and Procedures 80-82 c. Preferred Sales Associate Program 83-84 Brochure d. Converting Renters to Buyers 85-87 i. “Rent Smart” 88-94 e. ERC “Stop” Form 95 f. Glossary 96-134 6. Order form for Brochures, etc. 135 7. Commission Disbursement form 136 8. Contact information for each Regional 137 Relocation Division
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CRI E Cost of Living Request Form
Please fax or scan and email completed form to your Regional Relocation Division (see below for number)
Date: ______
Associate: ______Franchise Branch: ______
Note: In order to receive an accurate comparison, please complete this form entirely. Otherwise, default settings and assumptions will be used which impact numbers. If you are requesting information for a small locality, it may be not be in the database, so please give the name of the county.
Client Name: ______
Moving From: ______To: ______
Combined Annual Income: $______(required)
Planning to BUY or RENT? ______Square Footage: ______
Number of people in household: ______
How many personal vehicles? ___ Total Value: $______
Miles driven per year: ______
Atlanta: 770.887.5950 | 678.475.9756 (fax) [email protected]
Chattanooga: 423.296.1444 | 423.296.1445 (fax) [email protected]
Little Rock: 501.217.4016 | 501.954.9200 (fax) [email protected]
Memphis: 901.758.5660 | 901.758.5690 (fax) [email protected]
Nashville: 615.221.0444 | 615.370.9736 (fax) [email protected] ®
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SALES ASSOCIATE PROFILE
Date: ______
Associate Name (Please Print):______
Franchise Name ______
The Relocation Division adds associate profiles to the software system. In order to do this, each associate is asked to complete the following profile form. These are specifications commonly made by customers when requesting agents. With your information, we will be able to more accurately match you with our incoming clients. Please circle or highlight all that apply to you in each of the following categories.
Background: Business Owner, Clergy, Disabilities friendly, Elderly friendly, Engineer, ex military, Financial, Greek Affiliation, Medical, Politics, School Systems, Social Services, Special Ed, Teacher
Familiar Cultural Backgrounds: Arab, Chinese, Dutch, European, French, German, Greek, Hawaiian, Indian, Japanese, Korean, Philippines, Russian, Swedish, Turkish
Designations: ABR, CCIM, CPPS, CRA, CRB, CRP, CRS, EPRO, GRI, SRES
Education: Associates, Bachelor, J.D. Attorney, Master, PhD.
Hobbies: Animals, Antiques, Art, Baseball, Basketball, Biking, Bowling, Bridge, Camping, Cards, Cars, Computers, Cooking, Dancing, Decorating, Fishing, Fitness, Flying, Football, Gardening, Golf, Hockey, Horses, Hunting, Kayaking, Lacrosse, Motorcycles, Mt. Climbing, Musician, Photography, Sailing, Scuba Diving, Sewing, Skating, Sky Diving, Snow Skiing, Soccer, Softball, Swimming, Tennis, Theatre, Traveling, Volunteering, Water Skiing, Woodworking, Yoga
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Languages (must be fluent): Am. Sign, Arabic, Cantonese, Chinese, Creole, Czech, Dutch, Farsi, French, German, Greek, Hindu, Italian, Japanese, Korean, Mandarin, Polish, Russian, Spanish, Swedish, Vietnamese, Yoruba, Will work with Interpreter or other______
Familiar with which Religious Faith Communities: 7th Day Adv., Baha'i, Buddhist, Catholic, Hindu, Jehovah‟s Witness, Jewish, Mormon, Muslim, Protestant, Unitarian
Specialties: Condos, Historic Homes, Investment Properties, Land, New Construction
States Licensed in: AL, AR, FL, GA, KY, LA, MS, TN
Year Licensed: ______
Area expertise in your local area include all towns, municipalities, and communities that you service (please include zip codes)
Feel free to add any additional information about yourself or your service that would help us know you better.
Please fax or scan and email to the Regional Relocation Division - this form and a copy of your business card.
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Franchises, Inc.
Sales Associate Relocation Guidelines
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CRYE-LEIKE® RELOCATION SERVICES GENERATES REFERRALS BY:
Maintaining the various memberships necessary to secure our relationships within the relocation industry by:
I. Paying annual fees and dues
II. Attending conferences and learning seminars
Providing the training to sales associates stipulated by the management companies we represent (preferred broker programs) For example:
SIRVA Relocation NuCompass Mobility Brookfield Global Relocation Services Paragon Decision Resources RDI (RELO Direct, Inc.) Prudential Focus Relocation, Inc. and many others
Offering sales associate relocation training conducted for each phase of the relocation process held throughout the year: Home Finding, International, Rental, BMA and Inventory Properties - see CRA Training
Keeping Crye-Leike® Relocation Division‟s name in front of the industry by winning numerous awards in several categories. Awarded the RELO Quality Certification in 2003 and recertified in 2006 and 2009
Having Relocation staff available to assist you with client registrations; destination and departure referrals and offer advice on relocation issues that you may encounter
Assigning, on an average, almost 2500 referrals annually company wide
Placing and monitoring hundreds of Crye-Leike® sales associates‟ outbound referrals resulting, on average, of an $900 referral fee to sales associate
Providing, free of charge, Cost of Living comparisons between most cities in the country
Offering national van line discounts to pass along to your clients & customers
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CRYE LEIKE® AFFILIATES RELOCATION SERVICES POLICIES & PROCEDURES
GENERALLY
Crye-Leike® Relocation is obligated to pay relocation referral fees and/or Leading Real Estate Companies of the World ™ network administration fees.
1. OUTBOUND REFERRALS – If you can’t help with a real estate need, refer it to someone who can!
a) All outbound referrals other than to another Crye-Leike® Sales Associate should be placed through a Crye-Leike® Relocation Services Division. Outbound referrals require the customer’s permission to be referred.
Note: Please provide as much information as possible to the Relocation Division on the needs of your customer in order to provide the best information in placing the referral.
b) Associates may request certain criteria for placing the referral, (i.e. CRS, CRB, ABR, top producer, etc.) Crye-Leike® Relocation will make every attempt to place the referral with these requests as a priority.
c) Crye-Leike® is charged a relocation network administration fee even if Sales Associates elect to place an outbound referral without the assistance of Crye-Leike® Relocation (other than to another Crye-Leike® Sales Associate, i.e. inter-company referral). Said fee will be deducted from any referral fee received before distribution of the balance pursuant to Sales Associate’s applicable company brokerage split.
d) Inter -Company Referrals: Sales Associates may place referrals directly with any other Crye-Leike® Sales Associate located in any area that Crye- Leike® has an office. There are no fees collected by Crye-Leike® Relocation on these inter-company referrals. However, at the Sales Associate’s request, Crye-Leike® Relocation Services will place the referral for you at no cost to you.
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Outbound Referral Fees:
35% fee on the gross commission is charged on all outbound referrals. The network administration fee to Leading Real Estate Companies of the World™ is paid from this fee and no other fees are due to Crye-Leike® Relocation. Your company brokerage policy would apply to the remainder.
2. INCOMING REFERRALS
Crye-Leike® Relocation Services, through its marketing efforts and account management, receives incoming referrals from many sources, including broker- to-broker, relocation management companies and local corporations.
Incoming relocation referrals, which may be to list the home of a seller who is leaving town or to find a home for a buyer who is moving to town, are assigned to Sales Associates who have met all of the required qualifications and are deemed by Crye-Leike® Relocation to be the best match for the transferee based on his/her needs as discussed with the Relocation Coordinator.
Listings: For corporate owned inventory listings, any prior listing agreements with a transferee will be null and void at the time the transferee accepts the corporate buyout. Crye-Leike® Relocation Services will give consideration to any relocation qualified Sales Associate who serviced the property prior to the corporate buyout. However, Crye-Leike® Relocation, in its sole discretion, may reassign the listing to provide the service required by the corporate client.
Note: For a list of the corporations known to require a referral fee to be paid on their employee’s relocations, please see the “Relocation Alert Memo” on the Crye-Leike® Intranet. (Click on “Tools”, then on “Forms & Contracts”, then on “Relocation”).
Inbound Referral Fees:
45% referral fees on the gross commission of the referred side are charged on all Relocation assigned referrals. The referral fees to the outside referral source are paid from this fee and no other fees are due to Crye-Leike® Relocation. Your company brokerage policy would apply for the remainder.
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3. CERTIFIED RELOCATION ASSOCIATE (CRA) Training Program
Crye-Leike® Relocation Services offers a Relocation specific training program for Sales Associates desiring referrals. There are three, three - hour courses necessary to become certified. The certification is valid for three years. Re- certification will be necessary every three years. The training schedule can be found on the Intranet under Forms, Memphis, and Relocation. For our franchisees special arrangements may be arranged for on-site training, please contact your Regional Relocation Division for further information on cost and scheduling.
4. REGISTRATION OF CLIENTS
Sales Associates should register their buyer and seller clients with Crye-Leike® Relocation by phone or email as soon as they anticipate working with them in an effort to avoid having to pay referral fees to other parties who may be referring the same transferee client to Crye-Leike® Relocation.
Crye-Leike® has contracts with certain entities, who charge Crye Leike® referral or other fees regardless of whether clients and customers are timely registered with Crye-Leike® Relocation. If Crye-Leike® Relocation is unaware of a customer working with a Sales Associate and Crye-Leike® Relocation accepts the referral from another source, a referral fee will be due. Crye-Leike® Relocation cannot reject the referral once it has been accepted. Even if buyers or sellers work with multiple Sales Associates within the firm, the Sales Associate who ultimately sells property to or for the client will be obligated to pay a referral fee.
Client Registration Process:
a) Call or email your Regional Relocation Services Division to register any buyers or sellers with whom you are working as soon as possible. Please call the Regional Relocation Services Division for the correct email address.
b) Provide the name (exact spelling), address and the company the transferee client works for along with your name and office.
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c) Crye-Leike ® Relocation Services will notify you if you are working with a client who may have a referral fee attached regardless of previous contact (i.e. a corporate client with benefits tied to the referral fee).
Note: Please see the “Relocation Alert Memo” on the Crye-Leike® Intranet under Forms, Divisions – Relocation then forms
5. OBLIGATIONS REGARDING REFERRALS WHEN TERMINATING
Referrals whether buyers or sellers, assigned to Sales Associates by the Relocation Services Division are the property of Crye-Leike,® Realtors® and shall be returned to Crye-Leike®, together with all documents and other items related to such business, upon termination of the Sales Associate or the franchise owner. After termination, no commissions or fees will be paid to Sales Associates regarding any transaction unless a written Purchase and Sale Agreement was properly executed by buyer(s) and seller(s) before the termination of the relationship between Crye-Leike® and the Sales Associate. If any referrals are sold/pending at the time the relationship is terminated, all applicable referral fees and any other amounts owed Crye-Leike® shall be deducted from commissions prior to disbursement to Sales Associate.
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From the Crye-Leike Sales Associates Policies & Procedure Manual: (Found on the Crye-Leike Intranet General Policies & Procedures View PDF)
RELOCATION SERVICES 4:1 GENERALLY Per contract, Crye-Leike Relocation is obligated to pay relocation referral fees and/or relocation network administration fees.
4:2 OUTGOING REFERRALS All outgoing referrals other than to another Crye-Leike Associate should be placed through Crye-Leike Relocation. Outbound referrals require the customer‟s permission to be referred. Crye-Leike is charged a relocation network administration fee even if Associates elect to place an outgoing referral without the assistance of Crye-Leike Relocation (other than to another Crye-Leike associate, i.e. intercompany referral). Said fee will be deducted from any referral fee received before distribution of the balance pursuant to Associate‟s applicable commission split. Please call Relocation Services for applicable charges.
4:3 INCOMING REFERRALS Incoming relocation referrals, which may be to list the home of a seller who is leaving town or to find a home for a buyer who is moving to town, are given to Associates who have met all of the required qualifications and are deemed by Crye-Leike to be the best match for the transferee based on his/her needs as discussed with the Relocation Coordinator in Relocation. For corporate owned inventory listings, any prior listing agreements with a transferee will be null and void at the time the transferee accepts the corporate buyout. Relocation will give consideration to any relocation qualified associate who serviced the property prior to the corporate buyout. However, Relocation, in its sole discretion, may reassign the listing to provide the service required by the corporate client. For a list of the corporations known to require a referral fee to be paid on their employees‟ relocations, please see the “Relocation Alert Memo” on the Intranet under Relocation. Please call Relocation Services for applicable incoming relocation splits and/or charges.
4:4 REGISTRATIONS OF CLIENTS Associates should register their buyer and seller clients with Crye-Leike Relocation either by phone or email as soon as they anticipate working with them in an effort to avoid having to pay referral fees to other parties who may be referring the same transferee client to Crye-Leike Relocation. Crye-Leike has contracts with certain entities, who charge Crye-Leike referral or other fees regardless of whether clients and customers are timely registered with Crye- Leike Relocation. If Crye-Leike Relocation is unaware of a customer working
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` with an Associate and Crye-Leike Relocation Services accepts the referral from another source, a referral fee will be due. Crye-Leike Relocation cannot reject the referral once it has been accepted. Even if buyers or sellers work with multiple Associates within our firm, the Associate who ultimately sells property to or for the client will be obligated to pay a referral fee.
4:5 OBLIGATIONS REGARDING REFERRALS WHEN TERMINATING Referrals whether buyers or sellers, assigned to Associates by Crye-Leike Relocation or the Internet Customer Care (ICC) Department are the property of Crye-Leike and shall be returned to Crye- Leike, together with all documents and other items related to such business, upon termination. After termination, no commissions or fees will be paid to Associates regarding any closed transaction unless a written Purchase and Sale Agreement was properly executed by buyer(s) and seller(s) before the termination of the relationship between Crye-Leike and the Associate. If any referrals are sold/pending at the time the relationship is terminated, all applicable referral fees and any other amounts owed Crye-Leike shall be deducted from commissions/fees prior to disbursement to Associate.
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CONVERTING RENTERS TO BUYERS
There are many good reasons to provide rental service, not the least of which is the service to the incoming newcomer and their companies. Helping corporations with their incoming renting transferees also helps get you in the door of some of some of your local companies you‟d like to have business from. Treating renters the same as buyers even though there is little monetary reward is smart business. After all why should a corporation offer a renter transferee less service in relocating than the homeowner transferee? Provide the same service to the renter as to a homeowner – a great relocation package, including information on the rental market availability and cost, the orientation tour, and the same quality attention and you will provide a much needed service to the corporation. Having a good viable rental assistance program is essential in today‟s corporate business development efforts. You may even convert some of these renters to buyers! There are 3 major opportunities to convert renters to buyers:
1. Before their home finding trip, while you are counseling them during the needs analysis. The first order of this counseling session is to determine if they are truly renters or if they are homeowners who think they want to rent for various reasons. One of these reasons could be that they are unfamiliar with your area and are wary of making an uninformed decision that will affect their quality of life in the new city. Fear of making a mistake in purchasing a home in a less than desirable location is the biggest factor in some transferees‟ decision to rent rather than buy. Everyone wants to get “familiar” with an area before buying. A good orientation tour will go a long way in dispelling this fear. The transferee may have an undisclosed fear of not qualifying for a home loan due to past credit problems. This is an opportunity to create a positive perception about their credit worthiness. It is actually tougher to rent than to buy with a poor credit history. They may only be planning to rent temporary housing, which is an indication that they will be buying at a predetermined future date. They may have reasons that will prevent them from renting; pets, special needs, etc. Whatever the reason, probe further with questions such as:
Are you or have you been a homeowner previously? If they have, they will be accustomed to having things the way they want them in the decorating, amenities, etc. They may very well be dissatisfied with renting the available properties in your area. Do you have a price range in mind for the monthly rent? They may not be realistic in the rental prices charged in your market. They may not be able to rent affordably in the area they feel is the most desirable. What factors are the most important to you in deciding where you will live? If for example the school district is the major factor, in general these locations will be the most sought after and therefore have less properties available and likely more expensive.
Do you have pets or special circumstances that need to be addressed?
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Would you like to speak with a loan officer to determine your qualifications for buying a home? The loan officer can explain the benefits of buying. Interest rates are excellent and there are many tax benefits in owning versus renting.
2. After they have been on their “look-see” trip and have seen a sampling of the available properties for rent but before they have committed to a lease.
Were they happy with what they saw?
Was the rent in the price range that they expected?
Are they more comfortable in choosing an area to concentrate in?
Would they like to focus on buying rather than renting now that they have seen the area?
3. After they rent, but before their lease is up. Be sure that you get their rental address and phone numbers and lease term from the agent or the rental assistance provider so you can establish a follow up schedule. Some companies have specially designed software to help remind them to follow up on a regular basis; other companies have designed a marketing campaign with printed materials to help them stay in touch. Whatever you have – use it! Continue to strengthen your rapport and maintain contact and you will encourage their loyalty to your company and create more sales. Follow up, follow up, and follow up. As in any sales effort follow up is critical!
Follow up within the first 30 days to make sure they are settling in. Establish yourself as their connection to the new area. Offer to provide recommendations to needed services, i.e. Doctors, dentists, hairdressers, dry cleaners, etc. as an extra service of your company‟s rental assistance.
Have a system in place to regularly follow up with them. Place them on your mailing list and “drip” on them with printed information on your market area, available financing, etc.
Follow up should be at least every 30 days. If they have considered buying at all, as soon as they are settled in, they will start looking for housing to purchase. Offer the assistance of matching them with an appropriate sales associate. You have already established your department as their advocate and assigned sales associates or rental service providers will NOT follow up. The sales associates are too easily distracted by whatever crisis is in front of them at the moment. Your department has the best chance of staying in touch and converting the renter to a buyer.
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BENEFITS OF RENTAL ASSISTANCE PROGRAMS
1) Corporate Business Development
A way to get in the door of corporations with transferring buyers as well as renters
Providing rental services encourages loyalty to your company with future buyer referrals
Creates credibility for your company by establishing your “full service” capabilities
2) Recruiting sales associates
3) Creates referrals to newer sales associates otherwise not considered
4) Training opportunity with built in practical experience for newer sales associates
5) Conversion rate enhancement
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LOCATING YOUR RENTAL HOME
“RENT SMART”
In your new location with
Crye-Leike® REALTORS®
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WHAT TO CONSIDER BEFORE LOOKING FOR A RENTAL PROPERTY
Selecting the right rental home to meet your particular needs should start with some simple planning and information.
Determine a Monthly Rent Allowance. Some use a „rule of thumb‟ figure equal to one-fourth to one-third of gross Monthly income. Most importantly, establish a monthly rental payment range with which you will feel most comfortable. Be sure to investigate what is included with the rent (electric, cable, Phone, for example), and which costs will be in addition to the rent. This varies greatly from city to city.
Learn about the Rental Market in Your Destination City. Utilize your Crye-Leike Sales Associate to help get a general overview of the area’s rental market. Find out how tight the rental market is, what types of rental properties are most plentiful, and what average rental costs you can expect. This will help you understand your general options and how fast you may have to act to get what you want.
Locate Various Services and Sources for Finding Rental Properties. Depending on your destination, these may include:
Rental Services Many cities have independent or franchised service agencies that will direct you to area rental opportunities. Names can be found in the Yellow Pages or by calling the local Chamber of Commerce. Some will simply provide listings, while others may counsel you in selecting appropriate properties and personally set appointments tour such locations. In some instances, these services are provided at no charge; in other instances, there is a fee.
Property Mgt. Companies They will be able to refer you to available rental properties which they manage, but will not be a resource for all rental properties in the area. You can locate such companies in the Yellow Pages or by calling the local multi-housing association.
Renters’ Magazines These magazines are free guides paid for by advertisers, which primarily offer photos and maps associated with apartment complexes. Many cities have guidebooks offered by the Apartment Relocation Council. (602) 949-1900. Feel free to ask your Crye-Leike Sales Associate for help in finding these publications locally.
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Local Newspapers Local newspapers are excellent and timely sources of current rental opportunities. You may want to have one or more newspapers sent to you in the weeks prior to your relocation. Your Crye-Leike Sales Associate can help make those arrangements. You can also often find this information on the Internet.
WHAT TO CONSIDER BEFORE SIGNING A LEASE
Most lease time frames are month-to-month, six months or one year contracts. A good lease clearly defines your responsibilities as a tenant and your landlord‟s responsibilities as a lessor. For example, a lease should identify who pays for what utilities, tell how much notice you are required to give of your intent to vacate, protect you against rate increases for the term of the lease, and prevent eviction without proper cause.
Get It in Writing. While in some cases a verbal agreement may be enforceable, it is wise to put the terms of any lease arrangement in writing, regardless of the length of time you‟ll be renting.
Look before You Lease. Inspect your unit before signing a lease and leaving a deposit. Look at appliances, electrical systems, plumbing, heating, air conditioning, lights, water pressure, locks and windows. Make a list of repairs required prior to your move in, and have it signed by the landlord. All such promises of improvement should be received in writing.
Read Carefully before Signing. If you don‟t understand something, ask questions. If you have any concerns, consider having a professional review your lease. You may also want to contact that state‟s attorney general‟s office about specific state laws covering tenant‟s rights and responsibilities.
Add What You Need. Special clauses or modifications can be inserted into the lease document or attached as a rider. Again, you may want to seek professional assistance when making such lease provisions, but a common example is a buyout clause. This represents the terms under which you can buy out of a lease, regardless of the reason. The cost of doing so will vary from market to market, and could range from a flat fee to an amount equal to several months‟ rent. You may want to also ask if the property manager has other specific lease provisions, such as relocation or build/buy clause. If they do not, it may be possible to negotiate such a provision. A couple of examples are attached.
Clarify Notice Requirements. Be sure to find out exactly when you are required to give notice prior to terminating a lease. You will not want to miss a deadline by 24 hours due to a simple misunderstanding.
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Understand Deposit Requirements. All landlords have the right to require a security/damage/cleaning deposit. It is their insurance against damage beyond ordinary wear and tear. The amount varies from a flat fee to one month‟s rent. It could, with reason, be retained in full by the landlord, and it cannot be used by a tenant to pay rent. Make sure to get the exact requirements for the deposit in writing; know its purpose and under what circumstances you will get it back. Find out if the landlord is required to pay interest on the deposit, and if so, at what rate and for what period of time. Other deposits to anticipate include pet deposits, key deposits and recreation deposits. Be sure to also ask under which circumstances those deposits will or will not be returned and if interest is paid. If possible, accompany your landlord on their walk-through of your vacated property. This way you will know for what damages you are being charged.
Inquire about Additional Fees. Some landlords charge a rental application or credit check fee, which they require to check your references. Find out exactly what the fee is, and ask if it is refundable or negotiable.
Don‟t Forget about Insurance. Building owners carry insurance on the building and the property within it – but not on the property belonging to you. Contact an insurance agent regarding a renter’s insurance policy. It’s a relatively low cost way to protect your personal belongings. Consider natural disasters common to that part of the country, such as earthquakes, hurricanes and floods, and find out about possible additional coverage.
Take Note of Move-In Conditions. Things may have changed since you first inspected your rental property, so a pre-move-in walk-through is critical. Many landlords will have a form to indicate a unit or property’s pre-move-in condition. Take a thorough walk-through the property and make very specific notes of tears, scratches, etc. If such a form is not available, make your own list and have it signed by both you and your landlord.
Know about Tax Refunds. Be sure to find out what the state law provides as tax benefits to renters. Some recognize that renters pay real estate taxes through their rent and thus give renters a tax credit at year end. Rent credit forms typically accompany state income tax forms. Your building owner must provide you a statement of rent paid.
Questions to Ask. Following are some of the things most often overlooked by prospective renters. Keep these in mind and ask several questions during your search.
Are heat and/or air conditioning included in the monthly rent?
If you are paying for heat, is it gas or electric, and what is the average monthly bill?
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How long will the application process take, in comparison to your required move- in-time?
If looking at a smaller apartment complex, what is the on-call maintenance policy, especially for emergency servicing needs?
Is sound control adequate at varying times of the day?
What is the manager/owner‟s right to enter, and what kind of notice will they provide?
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Lease Cancellation Addendum Samples
You should consider adding one of the following sample addendums or similar language to your lease at your new location:
“It is understood that the Lessee is subject to transfer by his or her employer. Accordingly, it is agreed that in the event of Lessee’s transfer at any time prior to the date on which the last monthly rental payment under this Lease becomes due, Lessor will release Lessee if and from all further obligations under the Lease as of the last day of the monthly rental period during which Lessee vacates the premises, provided that the Lessee gives written notice to the Lessor 30 days prior to vacating.”
______Lessee – Print Name Signature Date
______Lessor – Print Name Signature Date
“If the Lessee is transferred by his or her employer, the Lease will be terminated and Lessee released from all obligations as of the last day of the month during which the Lessee vacates the premises if the Lessee has given the Lessor 30 days written notice prior to vacating.”
______Lessee – Print Name Signature Date
______Lesser – Print Name Signature Date
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RELOCATION GLOSSARY - A –
"As Is" Condition - Seller will make no repairs on house before settlement and makes no representations as to its condition. Some states limit the effect of "as is" clauses or real estate sales. Term also means the appraisal method of examining the physical aspects of a home, noting any deferred maintenance requirements.
Abstract of Title - The condensed history of a title to a particular parcel of real estate consisting of a summary of the original grant and all subsequent conveyances and encumbrances affecting the property and a certificate by the abstractor that the history is complete and accurate.
Abstract of Title with Attorney’s Opinion - An abstract of title that an attorney has examined and has certified to be, in his or her opinion, an accurate statement of fact.
Accelerated Payment Mortgage - A loan that calls for a full mortgage payment to be made twice a month instead of the normal once a month. This shortens the term of the loan and reduces cumulative interest payments.
Acceptance - In real estate sales, occurs when the seller agrees to the terms of an agreement of sale, proposed by the buyer, and acknowledges the receipt of an earnest money deposit.
Acceptance Period - Typically a fixed period of time (typically 30 to 90 days) during which the offer to buy an employee‟s primary residence is valid. Also referred to as the contract marketing period.
Accrued - Commonly used when referring to interest on mortgage payments. Interest charged in a given monthly mortgage payment typically covers the month prior to the date the mortgage payment is due. Interest is paid after it is earned, or in "arrears."
Acknowledgment - Generally, the notarized signature(s) of the parties to be docent. Acquisition - The passing of beneficial ownership of a home from an employee to the purchaser.
Acquisition and Carrying Costs - Those fees and charges associated with establishing an appraised value, taking a home into inventory (except for formal closing costs in which title passes from the employee to the purchaser), and keeping a home in inventory until resale. Typical fees and costs often associated are: Worldwide ERC® Summary Appraisal Reports; Broker‟s Market Analysis and Strategy Reports; inspections; certificates of occupancy; bank information; miscellaneous acquisition costs; insurance, utilities, and property taxes;
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` maintenance fees; condo/association/homeowner/common area fees; mortgage interest; miscellaneous recurring carrying costs; home maintenance; repair fees; capital improvements; mortgage assumptions; assessments; rental management fees; miscellaneous non-recurring carrying costs; rental income credit; and interest on equity.
Acquisition Billing - See Advance Billing.
Ad Valorem Taxes - Taxes assessed according to valuation.
Adjustable Rate Mortgage (ARM) - Mortgage loans under which the interest rate is periodically adjusted according to a pre-selected index. ARM‟s typically adjust every six months, one year, three years, or five years. Some adjustable mortgages may have negative amortization, a rapid increase in payments, and/or unknown future interest rates. Also called Variable Rate Loan/Mortgage or Flexible Rate Loan/Mortgage.
Administrative Costs or Expenses - Corporate expenses to either operate an in- house home sale program or oversee the service performance of a third party supplier. In either case, this also includes all those employees involved in operating the corporation‟s home sale process, such as explaining the home sale program, distributing forms and booklets, updates, appeals, and so forth. These expenses are not readily associated with the handling of a specific property and include salaries and wages, rent depreciation, amortization of mortgages or loans, utilities, office supplies, telephone, postage, travel and living expenses, data processing, and employee benefits. These expenses could include those costs for services provided by corporate employees outside of the home sale operating group itself, such as Legal, Tax, Financial, Auditing, Human Resources, Purchasing, and so forth that support the home sale operation. Also, the cost of any executives that have overall responsibility for the home sale program but are not a part of the operating group are included. In some cases, however, when agreed to by the parties certain of these charges may be billed to individual properties as incurred. Examples could include prorated shares of costs of trips to examine inventory properties, express mail expenses, and the cost of wire transfer of funds. Also referred to as Overhead Expenses. See also Indirect Expenses or Indirect Costs.
Advance - See Equity Advance.
Advance Billing - A charge to the employer for up-front payment of costs to be incurred by (usually only) a relocation company for the acquisition, carrying, and selling of a property. The amount of the advance billing is usually expressed as a percentage of the appraised value as determined by the third party contract. Also referred to as Acquisition Billing.
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Affidavit - A written statement made under oath before a notary public or other judicial officer. (Real Estate) Agent - A person licensed by the state who represents the buyer or the property owner in real estate transactions. Agents must work through a licensed real estate broker.
Agreement of Sale - A contract in which a seller agrees to sell and a buyer agrees to buy, under certain specific terms and conditions, which must be in writing. Known in different states as "Contract of Purchase," "Sales Agreement," "Binder." Every sale of real estate property must be in writing (contract of sale/earnest money contract.)
Allowances - In a real estate sale, a specific amount of money, which has been negotiated in the agreement of sale to be applied toward completion of certain repairs, improvements, purchase of major appliances, and/or other concessions?
Amend-from-Zero - See Buyer Value Option
Amended Value Amount - When pursuant to a relocation policy, an employee finds a potential buyer for his/her home, and the purchaser (either the corporation or home purchase company) determines that the offer is bona fide; the purchaser will then amend its appraised value offer to reflect the value of the offer. This new value, based upon a bona fide market offer, is the amended value amount.
Amended Value - A relocation policy provision which, among other things, provides that after an appraised value has been determined, an offer to purchase the home has been made to an employee, and during the period in which the purchaser‟s (either the employer‟s or home purchase company‟s) written offer is outstanding, the employee may or may not be required by policy to seek a potential buyer willing to pay a price higher than the appraised value. As in an appraised value transaction, the employee may enter into a listing agreement with a real estate broker, in which case the employee must include in the listing agreement a provision to the effect that the broker will earn no commission if the employee sells the home to the purchaser ("exclusion clause"). If a potential buyer is found, the purchaser will often verify that the offer is bona fide. If the purchaser determines that the offer is bona fide, the purchaser will amend its appraised value offer to the employee to reflect the offer ("amended value"). This offer from the purchaser (often called an "offer to purchase" or a "home purchase agreement") at the higher price is unconditional and is not contingent. In selling to the purchaser in an amended value transaction, the employee executes and returns to the purchaser the offer to purchase and related documents, modified to include the amended value amount in place of the appraised value. As with a sale at the appraised value, upon execution of the offer to purchase, the purchaser may pay the employee a portion or the entire employee‟s equity in the home based on the amended value. When the employee vacates the home and/or closes with the purchaser, final equity and adjustments are computed (based on the amended
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` value) and paid in accordance with the employer‟s relocation policy. Pursuant to the terms of the offer to purchase, the purchaser is the sole beneficial owner of the home and bears all of the burdens of ownership including the responsibility for all expenses related to maintaining and disposing of the home. The employee bears no risk that the potential buyer will not buy the home or that the home may ultimately sell for less than the amount the purchaser paid to the employee. The listing agreement between the broker and the employee is terminated pursuant to the exclusion clause, which is an integral part of the listing agreement. Since the employee has sold the home to the purchaser, the employee has no obligation to pay a commission to the real estate broker. The structure of the amended value transaction does not permit the employee to accept the offer from the potential buyer. He/she may not enter into a contract nor sign any document with the potential buyer. Accordingly, there is never a binding agreement between the employee and the potential buyer, either at the time the purchaser amends its offer or thereafter. The purchaser enters into a new listing agreement with a broker who earns commission in connection with a sale of the home only if and at such time as the property is sold. In many cases, the offer by the potential buyer of the home is sent to the purchaser. If the potential buyer is still available and if his/her offer is acceptable to the purchaser, it may be accepted by the purchaser. The employee exercises no control over the purchaser‟s sale to the potential buyer or anyone else. If the anticipated sale by the purchaser to the potential buyer is not closed, this has no effect on the purchaser‟s obligation to pay the employee the amended value.
Amenities - The available facilities in addition to the living unit, such as swimming pool or tennis court.
Amortization - The systematic and continuous payment of an obligation through installments until the debt has been paid in full.
Ancillary Services - Contracted services and fees related to the relocation process that are not a part of the home sale services. Examples would include services such as expense management, property management, direct billing of purchase closing costs.
Annual Percentage Rate (APR) - A term used in the Truth-in-Lending Act to represent the percentage relationship of the total finance charge to the amount of the loan. The APR reflects the cost of your mortgage loan as a yearly rate. It is often higher than the interest rate stated on the note because it includes, in addition to the interest rate, loan discount points and fees, and mortgage insurance.
Application - A printed or electronic form used by a mortgage lender to record necessary information concerning a prospective mortgage.
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Application Fee - A fee charged by a lender for accepting a loan application and initiating the loan review process. It usually covers the nonrefundable charges (such as appraisals, credit reports, etc.) a lender incurs when deciding whether a loan can be granted.
Appraisal - See Relocation Appraisal.
Appraisal Service Fee - A charge to the employer's in-house program or a relocation management company to cover the administrative costs of ordering, reviewing, and analyzing relocation appraisals, inspections, and broker‟s market analysis and strategy reports, including the employee appeal investigations, and other activities leading to the issuance of an offer to purchase.
Appraised Value - The anticipated sales price of real estate established by the relocation appraisal process.
Appraised Value Transaction - A relocation program established by an agreement between an employer and a purchaser (typically a relocation management company or an employer). Generally the process begins when the purchaser is advised that an employee is to be relocated. The purchaser then contacts the employee and typically orders two independent appraisals of the employee‟s home to obtain an estimate of its market value. Generally, either the purchaser selects the appraiser directly, or the employee selects some or all of the appraisers from a list prepared by the purchaser. If the values in the appraisals are within a stated range (often 5 percent of the higher), the average of the two is taken and that average becomes the appraised value. If the variance between the appraisals is greater than the permitted range, a third appraisal or other valuation is obtained and the appraised value is determined, depending on the program, by averaging some combination of the appraisals. Typically, a review process is conducted to ensure the appraisals were competently prepared and are complete. Once an appraised value is determined, the purchaser offers to buy the home for this price. The offer is made in the form of an offer to purchase between the purchaser and the employee. If the employee desires to sell to the purchaser, he/she can accept the appraised value as the market value of the home. Depending on the employer‟s relocation program, the employee may have a period of time (usually between 30 and 90 days) from the date of mailing of the offer to purchase to elect to accept the purchaser‟s offer at the appraised value. The employee exercises this election by executing the offer to purchase and returning it and other documents to the purchaser. Upon receipt of the signed offer to purchase, the purchaser signs it and pays the employee a portion or all of the employee‟s equity in the home. When the employee vacates the home and closes with the purchaser, the balance, if any, of the employee‟s equity is paid. Pursuant to the terms of the offer to purchase, the purchaser, as contract buyer, is the beneficial owner of the home and bears all the burdens of ownership including the responsibility for all expenses related to maintaining and disposing of the home.
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APR - See Annual Percentage Rate.
Acquisition Billing - See Advance Billing.
Area Orientation Services - Research and information provided by relocation services or real estate firms to a relocating family regarding "lifestyle" issues and other concerns in the new area. Examples of information provided include: community resources, volunteer organizations, school information, support groups, service providers, doctors, veterinarians, music instructors, sports programs, churches, study groups, and so forth. Services may include taking the family on a guided tour of the area. Fees may be associated with some or all of these services.
Arm’s Length Transaction - All of the parties of a purchase/sale being well informed and acting in what they consider their own best interests.
Asking Price - See Listing Price.
Assessed Valuation - Generally, a valuation placed upon real estate property by a public tax assessment officer or board, as a basis for taxation.
Assessment - A proportionate tax or lien against real estate by a public authority to pay the cost of public improvements such as street lights, sidewalks, sewers, paving, and so forth.
Assigned Sale - A type of relocation policy, less common than others because of the potential tax implications. An assigned sale transaction differs very significantly from an amended value transaction, although the procedures may appear similar. In an assigned sale transaction, the employee typically signs the contract of sale from the potential buyer and will then "assign" the contract of sale to the employer. In general, there are two variations of when the employee has the right to receive equity from the purchaser in an assigned sale. In the first variation, the employee has the right to receive equity based on the price in the potential buyer‟s contract of sale, subject only to fulfillment of all of the contingencies contained in the contract of sale from the potential buyer. If the contingencies are not removed, the transaction between the employee and the purchaser reverts to a sale at the appraised value. In the second variation, the employee has the right to receive initial equity based on the appraised value; he/she has the right to receive additional equity when the sale to potential buyer is closed. In the assigned sale transaction, the purchaser ordinarily does not enter into a new listing agreement with the real estate broker.
Assignment - The method or manner by which a right, obligation, or contract is transferred from one person or another.
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Association Fees - Charges for maintenance or operation of facilities for a property by a management group or organization. Normally a pro-rated share of the total costs for the organization of which the property is a part such as a condominium association or a homeowner association. In some cases, these fees cover taxes, utilities, or assessments. Also known as Homeowner Association Dues.
Assuming a Mortgage - A purchaser substitutes his/her name for the original mortgage holder and agrees to fulfill the remaining obligations of the mortgage agreement, releasing the original mortgage holder from further legal obligation under the mortgage. Some terms of the mortgage may be altered by the assumption.
Assumption of Mortgage - The taking of title to property where an individual assumes liability for payment of an existing note secured by a mortgage or deed of trust against the property.
Attachment - Judicial seizure of property as security for pending judgments.
Attorney Fees - In real estate transactions, attorney fees are typically for the review of the real estate contract, title, and representation at a real estate closing.
Auction/Disposition Services - Services for the auction/disposition of distressed properties, hard-to-sell homes, and so forth for corporations, national home purchase companies, and so forth.
Auto/Motor Vehicle Transportation - Transporting cars and other types of motor vehicles such as motor homes and boats for the employee from the origin location to the destination location.
- B - Balloon Mortgage - A mortgage with periodic installments of principal and interest that do not fully amortize the loan. The balance of the mortgage is due in a lump sum at a specified date in the future. The borrower may have the opportunity to refinance the loan with the investor at that time or may have to pay it off.
Balloon Payment - A final payment of a mortgage loan that is larger than the required periodic payments because the loan amount was not fully amortized over its course.
Bank Information Fees - Fees charged by a lending institution to furnish or update mortgage information necessary in acquiring a property and determining the employee equity.
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Basis - The financial interest that the Internal Revenue Service attributes to an owner of an investment property for the purpose of determining annual depreciation and gain or loss on the sale of the asset. If a property was acquired by purchase, the owner‟s basis is the cost of the property plus the value of any capital expenditures for improvements to the property minus any depreciation allowable or actually taken. The basis reflecting these changes (often years) is called the adjusted basis.
Beneficial Ownership - The assumption of possession by the purchaser while not holding legal title to a home. This enables the purchaser to act as the "owner" of the property even though title remains in the name of the employee.
Bill of Sale - A written instrument given to pass title of personal property from the seller to the buyer. Binder - In California real estate sales, an agreement that may accompany an earnest money deposit for the purchase of real property as evidence of the purchaser‟s good faith and intent to complete the transaction; a purchase and sale agreement.
Bona Fide - In good faith, without fraud.
Borrower - A person who receives funds in the form of a loan with an obligation to repay principal and interest. If a mortgage is involved in the loan, the borrower is also known as the mortgagor.
Bridge Loan (Interim Financing) - Temporary financing arranged to allow the purchaser to close the new home purchase before sufficient funds have been received either from the mortgage or from the sale proceeds of the former residence. Also known as a swing loan.
Broker - An individual, licensed in a state, who acts as an agent for another in negotiating sales or purchases in return for a fee or commission.
Broker’s Commission - Payment of money and/or other valuable consideration to a real estate broker for services rendered in performance of a contractual agreement.
Broker’s Market Analysis and Strategy Report (BMA) - An Worldwide ERC® developed form to standardize the various BPO/BMA forms for general industry use by real estate brokers/agents. Information includes a written market analysis on recent comparable sales, listings with suggestions for marketing strategies, suggested list prices, and most likely sales prices. A fee may be associated with this service. It differs from an appraisal in that it focuses on a marketing strategy for a property.
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Broker’s Price Opinion (BPO) - A written market analysis on recent comparable sales and listings with suggestions for marketing strategies. A fee may be associated with this service.
Builder Warranty - Typically, a one-year protection plan that insures a newly built house against defects in structure and in the plumbing, heating, electrical, and cooling systems.
Building Codes - Regulations established by local governments, which specify the structural requirements for a building.
Building Line - A distance from the ends or sides of the lot beyond which construction may not extend.
Building Setback - Distance set forth by building codes or zoning ordinances from the ends or sides of the lot beyond which the building cannot extend.
Buy Down - A payment made to a lender in order to obtain the reduction of the interest rate for a period of time.
Buyer - The person or persons who submit a contract of sale on a property and ultimately close on the property at an agreed-to price.
Buyer Broker - A real estate broker who represents, exclusively, the buyer in a real estate transaction. A broker may choose to act solely as a buyer broker, or may do so on a case-by-case basis.
Buyer Broker Destination Services - Firms providing buyer brokerage services at the destination.
Buyer Incentive - Money and/or other valuable services provided to a buyer in a real estate transaction by the seller, that are normally not required to be paid by the seller. Examples include inspections, closing cost assistance, homeowner warranties, points paid on behalf of the buyer, concessions, and credits at closing.
Buyer’s Value Option (BVO) - A buyer value option transaction is a variation of the amended value transaction in which no appraisals are obtained and usually no initial offer is made to the employee. Although these transactions are sometimes referred to as "amend-from-zero" or "offers prior to appraisal," there is no initial appraised value offer to "amend." Rather, the only unconditional offer is made at the "buyer value," that is, the fair market value as determined by an offer from a potential buyer. Also referred to as an "amend-from-zero" transaction. The procedures generally are as follows: After the purchaser (relocation Management Company or in-house relocation department) is notified that the employee is to be relocated, the purchaser contacts the employee, explains the buyer value option, and offers home marketing, broker selection, or other
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` assistance available under the relocation program. The employee proceeds to market the home, seeking a potential buyer. As in the appraised value and amended value transactions, the employee may choose to enter into a listing agreement with a real estate broker that he or she selects, in which case the employee must include in the listing agreement a provision to the effect that the broker will earn no commission if the employee sells the home to the purchaser ("exclusion clause"). If a potential buyer is found, the purchaser verifies that the potential buyer's written offer is bona fide. If the purchaser determines the offer is bona fide, the purchaser makes an offer to buy the home from the employee for an amount equivalent to the price offered by the potential buyer. This involves making any necessary adjustments to reflect the differences between the offer from the potential buyer and the offer from the purchaser so that the two offers may be compared on an all-cash basis. This comparison of terms is for the benefit of the employer and ensures the reasonableness of the marketplace offers. For example, if the employee offered to pay the buyer's points in exchange for a higher purchase offer, then an adjustment would be made to make the offers comparable on an all-cash basis. This offer from the purchaser at the buyer value is unconditional and is not contingent on any event. Thereafter, the procedures are as described in the amended value option.
- C - C of O - See Certificate of Occupancy.
Cancellation Clause - A provision in a lien or contract which defines the termination of obligations of an agreement.
Cancellation Fee - Typically, a charge to the corporation to cover the third party or in-house program administrative costs of deleting files and database information; sending disclaimers and cancellation notices to employees; and placing stop orders on relocation appraisals, inspections, and similar services which are in process.
Cancelled Transaction - The termination of the offer to purchase process by the employee and/or the corporation resulting in a cancellation fee being charged to the corporation.
Cap - Refers to the maximum allowable increase, either payment or interest rate, for a specific amount of time for an adjustable rate mortgage.
Capital Improvements - An expenditure that adds to the value or useful life of a property and is considered a permanent investment to be added to the cost basis of the property. Capital improvements are different from the costs of maintenance and repairs. Examples of capital improvements would be the cost of a new roof and the conversion of an unfinished basement into living area.
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Carrying Costs - Recurring costs and extraordinary charges of holding a property in inventory. This could include insurance, utilities, mortgage interest, condominium dues, taxes, homeowner association dues, maintenance expenses, assessments, and repairs. All costs of holding and operating a property during the inventory or marketing period should be charged to this category.
Cash to Close - Cash or cash equivalents necessary to pay the closing costs involved in purchasing real estate.
Certificate of Occupancy - An inspection of property and fee often required by the local governmental authority at the time of resale or passing of title. It can include plumbing, heating, electrical, and structural inspections. This certificate ensures that local, county, or state code requirements have been met.
Certificate of Title - A statement of opinion on the status of the title to a parcel of real property based on an examination of specified public records. Chain of Title - Beginning with a conveyance out of an original source of title, such as a government, each succeeding deed, will, or other document that conveys and transfers the title to succeeding owners constitutes a link in the chain of title. The chain of title is the composite of all such links.
Clear Title - Implies that, according to records in the registry of deeds, the title stands fully in the name of the owner (or eligible co-owners) claimed. The employee must present clear title in order to sell his home.
Closing - Usually a meeting between or among the parties to the contract of sale, their attorneys, and others who have an interest in the sale, such as a representative of the company issuing title insurance, if applicable. When all the details have been settled and terms of the contract complied with, the seller signs and delivers the deed to the buyer; and the buyer in turn authorizes payment of the proceeds of the sale to the seller. In relocation, all or parts of a closing may be handled by mail between the purchaser and the employee.
Closing Agent - A firm retained for purposes of processing the closing of the sale of the home.
Closing Assistance Option - Typically a relocation policy which applies in the situation in which an employee obtains a potential buyer for his/her home before being initiated into a corporation‟s relocation program and before an appraised value has been determined for his or her house. Here, the employee usually has already signed an agreement to sell the home to a potential buyer, and under the terms of the closing assistance policy, the only assistance already offered by the purchaser is to pay the employee his/her equity in the home and to close the sale to the potential buyer. In some programs, the employee may sign an offer to purchase to sell the home to the purchaser and assign the agreement with the potential buyer to the purchaser to close. In these programs, one alternative is for
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` the employee to be relieved of his/her obligations with respect to the home when the offer to purchase between the employee and the purchaser is executed. If for some reason the closing with the potential buyer does not occur, the home is processed as an appraised value transaction with the employee being paid on the basis of the price in the agreement with the potential buyer. Another alternative is that the employee may not be relieved of his/her obligations with respect to the home until the closing with the potential buyer actually occurs. If for some reason the closing does not occur, the home is returned to the employee for subsequent disposition by the employee, which may include going through the program as an appraised value transaction.
Closing Costs - Fees and charges associated with the closing; typically include broker‟s commission, transfer taxes, legal and title expenses, revenue stamps, recording fees, and any other costs required by the mortgage lender. Usually considered direct costs. Also referred to as Settlement Costs.
Closing Costs Assistance - An incentive offered to a buyer in which the seller offers to pay all or part of the buyer‟s portion of the closing costs.
Closing Date - The date on which ownership of a property is transferred to a buyer and closing costs are paid. In some instances, it can be the date on which the closing funds were received if that date is different from the date documents are signed.
Closing Fees - Fees charged by an attorney, title company, lender, escrow agent, or trust company to prepare the necessary documents for closing a sale. These fees are separate and distinct from attorney fees, title costs, and lender fees defined elsewhere. Closing (Settlement) Statement - The statement of financial adjustments between the buyer and seller as of the day of closing to determine the amount of money the buyer must pay to the seller to complete the purchase of the real estate and seller‟s new proceeds. Most commonly reflected on a HUD-1 or similar statement.
Cloud on the Title - An outstanding claim or encumbrance which, if valid, would affect or impair the owner‟s title.
Co-Borrower - Additional borrower(s) whose income contributes to qualifying for a loan and whose name(s) appear on all documents with equal legal obligations.
Collateral - Property pledged as security for a debt, such as the real estate pledged as security for a mortgage.
Commission - See Broker‟s Commission.
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Commitment - See Mortgage Commitment.
Commitment Fee (Loan) - Any fee paid by a potential borrower to a lender for the lender‟s promise to lend money at a specified rate and within a given time.
Common Lands - The land, roadways, recreational facilities, and building sections owned jointly, most often encountered in condominium ownership or planned unit developments (PUD).
Comparables or Comparable Sales - Properties listed in appraisal reports that are substantially equivalent to the subject property.
Competitive Offering or Competitive Listing - Homes that are on the market currently and will be in competition with the subject property.
Concessions - A grant in cash and/or other valuable consideration as an incentive to purchase a home. Examples include delayed closings, repair allowances, and installation of air conditioning. Condominium - A group or complex of residential housing units in which each unit is separately and individually owned and the unit owners collectively own the commonly used appurtenances such as the land, gardens, sidewalks, supporting and dividing elements, elevators, and hallways.
Conforming Loan - Conventional home mortgages eligible for sale and delivery to either the Federal National Mortgage Association (FNMA) or the Federal Home Loan Mortgage Corporation (FHLMC). These agencies generally purchase traditional fixed rate level payment first mortgages up to loan amounts mandated by congressional directive.
Contingency or Contingency Clause - The insertion of language into a contract of sale which requires that a stated event, such as obtaining mortgage financing, must occur before the contract becomes binding on the party protected by the contingency.
Contingency Contract - A contract which becomes binding only after a specific situation has been met, such as a buyer having to sell his/her home before purchasing the new one.
Contract - An agreement, either written or oral, to do or not do certain things. Acceptance Period.
Contract of Sale - A written agreement between buyer(s) and seller(s) of real property listing the price of the property and terms of the sale. In some areas of the country it is called a "land contract" or "purchase agreement." For this glossary, contrast with "offer to purchase."
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Conventional Mortgage - A mortgage loan not insured by FHA, HUD, or guaranteed by the Veteran's Administration. It is subject to the conditions established by the lending institution and state statutes. The periodic payments for a conventional mortgage are sometimes insured by private mortgage insurance (PMI).
Conveyance - The transfer of the title of land from one person to another.
Conveyancing - The processes of preparation of the documents necessary to transfer title or create property interests.
Cooperative or Co-op - A property, such as an apartment, whose title is held by a corporation with residents owning shares in such corporation that entitle them to occupy a certain amount of living space pursuant to a lease granted by the corporation.
Cost-of-Living Allowance (COLA) - An allowance intended to assist an employee who is moving to a higher cost-of-living area to cover those higher expenses for a given period of time. Cost Plus - See Flat Dollar Fee.
Credit at Closing - Cash credit and/or allowances given to the buyer at closing in lieu of repairs and/or other services. Compare to Concessions.
Credit Eligibility - An analysis of a borrower‟s ability to repay a loan based on past credit performance, employment history, and other items.
Credit report - A report detailing an individual‟s credit history.
Cul-de-sac - A curving or circular street with only one entrance/exit. Designed to stop through traffic, add beauty and privacy, and break up monotonous patterns of streets at right angles.
- D –
Days in Inventory - The time period from the date of execution of the offer to purchase with the employee through the resale closing date. Accurate comparison of one corporation‟s days in inventory to another‟s requires recognition and appropriate adjustment if different dates are used.
Deductible Expenses - Deductible expenses are those that are included in the employee‟s taxable income for which he/she is entitled to claim a federal or state tax deduction.
Deed - A conveyancing instrument given to pass fee title to property at the time of sale. It usually is signed by the seller only and acknowledged by a notary
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` public. Title to the property passes upon signing and delivery of the document. However, if the deed is not recorded and property is subsequently sold to another and that deed recorded first, then the second deed creates paramount title.
Deed of Trust - A deed held in trust by a third party. In such a situation, the borrower transfers the title to a trustee who retains the title until a loan debt is repaid. A form of mortgage in some states.
Default - The nonperformance of a duty, whether arising under a contract or otherwise; failure to meet an obligation when due, such as failure to make mortgage payments as agreed to in the terms of the mortgage.
Deficit equity - An amount of money due from the employee to the purchaser as a result of equity calculation in which balance due on the mortgage and/or other liens is greater than the sales price of the home.
Delinquency - A loan payment that is overdue but within the period allowed before actual default is declared. DeMinimus Planned Unit Development (DPUD) Fee - A monthly fee paid by the homeowner, considered minimal in cost, for maintenance of roads, green space, and other minimal areas in a subdivision. There may or may not be a homeowner association fee in addition to the DeMinimus PUD fee. Contrast with PUD fee.
Deposit - See Earnest Money.
Depreciation - Loss of value in real property brought about by age, physical deterioration, or functional or economic obsolescence.
Destination Services - A wide array of services to corporations and their relocating employees and families at the destination location. Destination services may include the following: home-finding assistance, area counseling, mortgage financial counseling, rental assistance, temporary housing assistance, spouse- employment assistance, home inspection, and so forth. Some may have fees associated with their provisions.
Direct Costs or Direct Expenses - Typically, those costs charged directly against a specific property, which are then billed back to a corporation by either a third party company or in-house program. Usually, acquisition and carrying costs as well as disposition and selling costs are included.
Direct Reimbursement Program - Typically, a type of home sale program in which the corporation does not guarantee an appraised value nor does it purchase the property from the employee but does reimburse some or all direct selling costs.
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Directed Offers - An offer to purchase in which the employer has directed either the relocation management company or its in-house program to make an offer that is not solely derived from the relocation appraisal process. This offer is usually for an amount that would exceed the anticipated selling price of the property. Usually made as an inducement to relocate or to eliminate objections from the employee concerning the relocation appraisal process. The difference between the fair market value of the house and the amount paid to the employee is generally taxable to the employee as compensation.
Discount Broker - A real estate broker who works for a commission lower than that generally charged in the area.
Discount Points - A means by which lenders vary the yield/return on a mortgage when maximum rates are fixed by law, such as with FHA insured or VA guaranteed loans. Payment of "points" to the lender at the time the loan is made ensures the same return as the lender would have received if the loan were issued at the current interest rate. Discount points also apply to conventional loans and are a fee charged at closing by the lender to increase the yield or interest rate of the loan. These fees are also sometimes called commitment fees. One point is equal to 1 percent of the face amount of the loan. Discounted Loan - When the note rate on a loan is less than the market rate, the lender requires additional points to raise the yield on the loan to the market rate.
Disposition Costs - See Closing Costs.
Document Preparation Fee - Charges from vendors such as attorneys, title companies, escrow companies, and trust companies, to prepare legal and other papers necessary to acquire property.
Documentary (Tax) Stamps - A state tax, in the form of stamps, required on deeds and mortgages when real estate title changes ownership.
Dower - A right that a wife has in her husband‟s property effective at the time of death, by virtue of law. Traditionally, the husband‟s equivalent right is courtesy, but now both are often colloquially referred to as dower.
Down Payment - A specific percentage of a home‟s value paid at closing. Usually a down payment is 5 percent, 10 percent, 20 percent, or 25 percent of the house price. Private mortgage insurance is typically required for down payments less than 20 percent.
Dual Housing Assistance - Financial assistance that may be provided by a corporation in the event the employee purchases a new residence before selling the prior residence.
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Duplicate Carrying Costs or Duplicate Housing Expenses- Costs experienced as a result of an employee purchasing or leasing a new home before selling or canceling the lease in the old location. Typically, these costs include mortgage interest, property taxes, maintenance, and insurance.
- E –
Early Equity - See Equity Advance.
Earnest Money - The deposit money given to the seller or his agent by the potential the purchaser upon the signing of the purchase agreement and typically held in a specific escrow account.
Easement - A right to use another‟s real property for a specific purpose, such as providing a utility company a right-of-way for placing and maintaining power lines and poles.
Employee - Any person working for a corporation who is relocating and is eligible to participate in the provisions of the corporation‟s relocation policy. Employee Incentives - Any amount of money and/or valuable consideration or service granted to an employee to sell his/her home prior to its being acquired by the purchaser.
Encumbrance - Any right or interest held by a third party that affects or limits the title to property, for example, mortgages, easements, or restrictions of any kind. Liens are special encumbrances that make the property security for the payment of a debt or obligation such as mortgages and taxes. An encumbrance lessens the value of the property.
Equity - The interest or value an owner has in real estate over and above the existing liens against it, such as the mortgage balance and assessments owning. Equity equals sales price minus all debts (mortgage balance, assessments, liens, etc.).
Equity Advance - Payment of a portion of the available equity in the employee‟s home prior to the sale of the home.
Equity Bridge Loan - See Bridge Loan.
Equity Loan - See Bridge Loan.
Escrow - The delivery of money and/or documents associated with a real estate sale to a neutral party for delivery, exchange, or execution at the closing or some other specified time.
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Escrow Agent - An individual who administers an escrow and/or carries out the procedures necessary to transfer real property. Also called an escrow officer.
Escrow Fees - Charges for services rendered by an escrow agent.
Escrow Funds - In some states, a fund that is collected by the lender monthly with the principal and interest to pay taxes and insurance.
Excludable Expenses - Those moving expenses or reimbursements that the IRS considers non-taxable. They include travel and lodging at the time of the move, as well as household goods shipment and up to 30 days of in-transit storage.
Exclusion Clause - A provision placed in a listing agreement in which the broker acknowledges that he/she will earn no commission if the employee sells the home to the purchaser (typically a relocation management company or an employer). It should be inserted into every listing agreement involving a relocating employee.
Expiration Fees - Fees charged to a corporation when an employee either rejects an offer to purchase from a home purchase company or does not act on an offer and the acceptance period expires. This fee compensates the home purchase company for administrative costs associated with closing the file and also the time spent on the particular case.
External Management Fees - Any of several different charges to a corporation for third party or in-house program services. Usually these charges are made according to a previously set schedule and are identifiable to a specific property. An example would be the use of an independent contractor to inspect properties to ensure completion and quality of repairs or improvements performed by another vendor.
- F –
Fair (Current) Market Value - The most probable price that a willing and well- informed buyer would be justified in paying and an equally informed seller would accept for a home placed in a competitive and open market for a reasonable period of time
Federal Housing Administration (FHA) - A division of the U.S. Department of Housing and Urban Development (HUD) whose main activity is insuring residential housing loans made by private lenders. It sets standards for building construction and underwriting requirements. FHA does not lend money or construct housing.
Federal Housing Administration Mortgage (FHA Mortgage) - A housing loan insured by the Federal Housing Administration that enables lenders to loan a very high percentage of the purchase price.
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Federal National Mortgage Association (FNMA or "Fannie Mae") - A corporation created by Congress to support the secondary mortgage market. It purchases and sells residential mortgages insured by the FHA or guaranteed by VA, as well as conventional home mortgages. FNMA sets the standards for underwriting residential mortgages.
Fee Simple - The highest degree of ownership that a person can have in real estate. An interest in real estate that gives the owner unqualified ownership and full power of disposition.
Federal Housing Administration Insurance (FHA Insurance) - Insurance required by the FHA to insure FHA mortgages. The insurance premium is usually expressed in points and is paid by either the buyer or seller or shared depending on how the real estate sales agreement is written. Also called Mortgage Insurance Premium (MIP).
Fiduciary - A person who bears a special legally defined relationship of trust, confidence, and responsibility to others, such as a trustee or agent.
Finance Charge - Total amount of interest paid in a dollar figure. Financing - Methods of providing money to a borrower for the purpose of purchasing a home.
Finder’s Fee - An amount charged by and paid to agents who specialize in helping employees find a rental residence.
First and Second Mortgages - The initial mortgage placed on a property. In the event of default, the mortgagee (i.e. the lender) has first claim against the proceeds from the sale of the property. A "second mortgage" is the next mortgage on the property.
Fixed Buy-Out Fee - Typically, a charge to an employer by a relocation management company to purchase an employee‟s home. Usually expressed as a percentage of appraised value and generally includes expenses for direct costs, resale loss, overhead, and profit opportunity. Adjustments to the fee are often not made on a home-by-home basis but may be made on a periodic basis-annual, for example--and the adjustments may be calculated based on a variety of factors, including actual cost experience, economic index rates, and so forth.
Fixed Rate Mortgage - A loan in which the interest rate stays constant for the entire life of the loan. Also known as Fixed Interest Rate.
Fixtures - Property that is attached to real property and is treated legally as real property while it is so attached. Fixtures not specifically excepted from an accepted offer to purchase transfer with the real estate.
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Flat Dollar Fee (excluding direct costs) - Typically, a charge to an employer by a relocation management company to purchase an employee‟s home in which the employer pays the direct costs plus a management fee that is equal to a set dollar amount, not a percentage of appraised value, and charged on a per-property basis. Also referred to as Cost Plus.
Flexible Rate Loan/Mortgage - See Adjustable Rate Mortgage (ARM).
Flip Tax - Typically, a charge made by the cooperative corporation or the condominium association against the profit on a resale of a unit. Usually associated with low monthly maintenance fees and is usually expressed as a percentage of the gain on sale. It is often used to finance capital improvements to the buildings. Whether it should be paid by the employee and reimbursed or by the purchaser is a policy matter for the employer. If reimbursed, it is often reported under "Association Fees."
Functional Obsolescence - Outdated improvement(s) limiting market value.
- G –
Gain on Sale - Actual dollar difference between the appraised value of a property and the higher ultimate sales price after the purchaser (corporation or relocation company) has acquired the property. This is generally shown as a credit to the corporation.
General Contractor - A builder who oversees a renovation or the construction of a house or an addition.
General Warranty Deed - The deed with the highest guarantee of title, which allows the buyer to hold the seller liable if the title later proves to have a "cloud" (defect) on it.
Grantee/Grantor - A grantee acquires real estate by deed; a grantor conveys real estate by deed.
Gross Monthly Income - Total monthly income earned before deductions.
Gross-up - Company-provided tax allowance to offset, in whole or in part, the effect that certain taxable, nondeductible reimbursements or allowances may have on an employee‟s gross income.
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Growing Equity Mortgage (GEM) - A fixed interest rate mortgage, but payments may rise according to an agreed-upon schedule or an index. Increases are applied to principal, shortening the term of the loan.
Guarantee-Against-Loss Program - Typically, a type of homesale program in which the employer does not purchase the property from the employee but does provide the employee with a "guarantee" of some type limiting the employee‟s potential to lose money upon the sale of the home. The guarantee is often based on an appraised value and may include a maximum percentage or dollar loss that the corporation will guarantee.
Guaranteed Offer - The offer by the relocation management company or the employer to purchase an employee‟s principal residence, typically based on the average of two appraisals, with a fixed acceptance period.
- H –
Handyman’s Special - Sales vernacular for a house, usually sold in "as is" condition, that needs a great deal of fixing up.
Hazard Insurance - A contract whereby an insurer, for a premium, promises to compensate the insured for loss on a specific property due to certain hazards. Required by lenders.
Higher Offer Transaction - See Amended Value Transaction, Buyer‟s Value Option, Amend-from-Zero, Closing Assistance, or Assigned Sale Transaction.
High-Ratio Loan - Mortgage loans in excess of 80% of the loan amount divided by the lower of the sales price or appraised value.
Holdover Clause - Typically, a part of a listing contract with a real estate agent ensuring that even after the contract has expired, the agent will receive the full commission if someone to whom he/she has shown the house later tries to buy it directly from the owner.
Home - The employee‟s primary residence that is being sold in a homesale program. Typically, it is defined as real property containing an amount of land customary for the area and may include condominiums, cooperatives, mobile homes, and multi-family properties. Generally, it is neither investment property nor a second home.
Home Builders - Companies specializing in providing new or custom-built homes.
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Home Equity Loan or Line of Credit - A line of credit that can be drawn upon as needed. The total amount available becomes a lien on the property and is based upon agreement, equity in the home, or ability to meet the payments.
Home Finding Trip - A home or apartment search in the new area, based on an employee‟s specific requirements and preferences, taken after the employee has made a decision to relocate. Also referred to as Househunting Trip.
Home Inspection - A report from an independent technician rendering an opinion on the condition of a property. Such reports might include termite, well, septic, plumbing, heating, electrical, structural, roof, radon, or geotechnical exploration. An inspection report may be required on a property at any stage of the homesale process. Also see Inspection.
Home Inspection Services/Professional Engineers - Firms specializing in home inspections and professional engineering inspection of homes. Firms often offer structural, mechanical, heating/cooling, electrical, plumbing, septic, and other types of inspections and warranty services.
Home Inspector - A person who evaluates the structural soundness of a house.
Home Marketing Assistance Period - Proactive marketing assistance designed to help the employee market the primary residence by designing a customized marketing strategy and assist with offer negotiations. This assistance may be provided independently or in conjunction with the Homesale Assistance Program. Home Marketing Period - Time during which the employee may try to sell the home in the original location. This period may run throughout the appraisal process and/or Guaranteed Offer‟s Acceptance Period. Some employers require a mandatory marketing period before the employee is eligible to accept the Guaranteed Offer.
Home Purchase Companies - Companies that buy and sell homes for corporations on a contractual basis, nationally or regionally. Also known as relocation management companies or third party companies.
Home Sale Assistance - Reimbursement for expenses incurred in selling and/or purchasing a residence.
Home Selling Expenses - Expenses arising out of the sale of real estate such as brokers commission, transfer taxes, attorney and inspection fees, deed and recording fees, escrow or abstract fees, mortgage prepayment penalties, and incentives paid by the seller.
Home/Apartment Finding Guides - Publications of homes and apartments for sale, lease, or rent.
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Homeowner Warranty - Private insurance that protects a buyer against defects such as plumbing, heating, and electrical systems in the property he/she is purchasing. The period and coverage of the insurance varies widely, and both new and existing homes may often be insured.
Homeowner’s Association Dues - See Association Fees.
Homesale Exclusion Clause - See Exclusion Clause.
Homesale Program - That part of an employer's relocation policy designed to facilitate a relatively fast, convenient means by which an employee may sell his/her home with a minimum of time and effort. Usually accomplished through a relocation management company or a corporate in-house program, by appraised value, amended value, buyer value option, or assigned sale transactions.
Household Goods Transportation Insurance - Insurance provided for household goods being packed, in transit, held in storage, or unpacked. Dollar amount of insurance often determined by the total weight of the household goods shipment, with limiting factors.
Home Maintenance Expenses - The cost of keeping an acquired property in condition to perform efficiently the service for which it was intended. It is the upkeep of a fixed asset, which preserves the value but does not increase the value. Examples are cleaning, grass cutting, snow removal, pool servicing, and winterization.
Househunting Trip - See Home Finding Trip.
HUD - U.S. Department of Housing and Urban Development.
- I –
Idemnify - To protect or compensate for damage, loss, or injury.
Incentive/Cost Performance Fee - Typically, a charge to an employer by a relocation management company to purchase and sell an employee‟s home in which the employer pays direct costs, but the management fee is determined by the relocation management company‟s performance and can vary by time, cost, or quality of service.
Incentives - Typically, any payment of monies and/or valuable consideration or services performed to encourage the sale of a specific property.
Incidental Allowance - See Miscellaneous Expense Allowance.
Indemnification - A guarantee to protect another against specified future loss.
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Indirect Expenses or Costs - Typically, a relocation management company‟s expenses related to the operation of a homesale program, which expenses are not readily associated with the handling of a specific property. Examples include salaries and wages, rent, depreciation, amortization of mortgages or loans, utilities, office supplies, telephone, postage, public relations, marketing, travel and living expense, data processing, and employee benefits. However, in some cases, certain specific charges may be billed to individual properties as incurred. Examples could be prorated shares of costs of trips to examine inventory properties, express mail expenses, and the cost of wire transfer of funds. Also known as Overhead Expenses. See also Administrative Costs or Expenses.
In-house Program - A relocation service provider or group created within a corporation to provide homesale services to employees being relocated. In some instances, the in-house program staff may administer the corporation‟s relocation policy as well as the homesale program.
Initiation - That part of the homesale program in which the steps necessary to authorize relocation services are implemented, including creating files and the record-keeping devices necessary for reporting and tracking.
Initiation Fee - Typically, a charge to an employer by a relocation management company to cover the administrative costs of establishing employee contact, setting up files and databases, and providing communication material upon initiation of an individual into the homesale program.
Inspection - See Home Inspection.
Insurance - A contract with an insurer providing protection against loss arising from certain risks such as fire, vandalism, theft, life, liability, credit life, flood, and mineral exploration subsidence.
Insured Loans - A loan insured by FHA or a private mortgage insurance company.
Intangible Allowance - See Miscellaneous Expense Allowance.
Interest - A charge for the use of funds. The basis of this charge is often the prime rate plus or minus a negotiated amount and may be calculated as simple or compound interest per a negotiated agreement. Other bases may include federal funds (fed funds) and commercial paper rates.
Interest on Equity - The interest charges on equity amounts (including equity advances prior to acquisition) paid an employee from the date of disbursement to the closing date. The basis of this charge is usually the prime rate plus or minus a negotiated amount and may be calculated as simple or compound interest per a
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` negotiated agreement. Other bases may include federal funds (fed funds) and commercial paper rates.
Internal Revenue Service (IRS) - Tax agency of the U.S. Department of Treasury.
Inventory - Any property that has been acquired by the purchaser whether an appraised value, amended value, buyer value option, assigned sale, directed offer, or special transaction.
Investment Property - Real estate owned with the intent of supplementing income and not intended for owner occupancy.
IRS Form 1099S - A document required by the Internal Revenue Service that reports the selling of a home and provides certain financial data related to the sale. Required by the tax law of 1986, it is generally prepared by a lender or title company. If the sale price is $250,000 or below ($500,000 for married couples filing jointly), and certain other requirements are met, reporting has not been required since the home sale exclusion rules were enacted in 1997.
- J / K –
Joint Tenancy - Ownership of real estate between two or more parties who have been named in one conveyance as joint tenants. Upon the death of a joint tenant, his or her interest often passes to the surviving tenant or tenants by the right to survivorship.
Joint Tenants - Two or more persons who hold title to real estate jointly, with equal rights to use it during their respective lives; often contains the provision that on the death of a joint tenant, his or her share in the property passes to the surviving tenants, and so on, until the full title is vested in the last survivor. A joint tenant often cannot sell or encumber his or her interest without the consent of joinder of all of the other joint tenants.
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Lease Cancellation Penalty - A fee charged a tenant or lessee in the event the tenant breaks the lease before the stated period of time in the lease has expired. Also known as Lease Termination Penalty.
Lease-Option Agreement - An arrangement by which a renter leases a house with an option to buy at the end of a specific period of time at an agreed-to price.
Legal Fees - Fee paid to an attorney, title, escrow, or mortgage company for services rendered for the acquisition of property. Such fees are often charged to clear a problem with the title or remove a lien from the property.
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Lender Fees - Fees charged by the lender to cover the administrative costs of originating a mortgage loan. These fees may include application processing; credit, appraisal, title, and survey review and approval; preparation of the closing package; resale of the loan to the secondary market or entering the loan into the lender‟s portfolio.
Lien - An encumbrance against property as security for the payment of a debt; for example, judgments, taxes, mortgages, deeds, or trusts.
Listing Agreement - An agreement between a seller of real property and a real estate broker whereby the broker agrees to attempt to secure a buyer for the property at a certain price and terms in return for a fee or commission.
Listing Broker - The broker in a multiple-listing situation from whose office a listing agreement is initiated, as opposed to the selling broker, from whose office negotiations leading up to a sale are initiated. The listing broker and the selling broker may be the same person.
Listing Price - Price at which a home is listed for sale, not necessarily what it eventually sells for. Also known as Asking Price.
Loan Commitment - Written notice from the lender stating it will supply mortgage funds in a stated amount for a buyer to purchase a home.
Loan Origination Fee - The amount charged by a mortgage company for handling the initial application and processing of a loan. Loan-to-Value Ratio (LTV) - A ratio that compares the amount of a mortgage loan against the appraised value of the property. Usually expressed as a percentage. For instance, with an "80% LTV" the amount of the mortgage loan is 80% of the appraised value of the property.
Local Custom - A common practice in an area that is often unwritten.
Local Fees - Fees typically charged by local governments regarding the transfer and recording of real estate transactions. These may include recording fees for deeds, mortgages, releases of mortgages, city/county tax stamps, and other transfer charges.
Loss on Sale - Actual dollar difference between the appraised value of a property and the lower ultimate sales price after the purchaser (employer or relocation management company) has acquired the property. Typically shown as a charge to the employer.
Loss-on-Sale Assistance Program or Provision - An aspect of some homesale programs which calculates the difference between the appraised value offer and
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` either the employee‟s purchase price or the employee‟s purchase price plus all or some of the subsequent capital improvements. This difference, or some portion thereof, may be paid to the employee.
Loss-on-Sale Protection - See Loss-on-Sale Assistance.
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Management Fee - An amount charged to the corporation by a relocation management company to manage the sale of a transferee‟s home. Examples range from simple flat per-case fees and fees calculated as a percentage of the appraised value (or sales price) to more elaborate fees based on a relocation management company‟s total cost performance and/or employee service satisfaction.
Market Analysis - Methodology used by a broker in comparing a house to comparable homes and competitive listings on the market in order to determine a recommended listing price and probable sales price.
Market Data Approach to Value - The price at which a property would most probably sell, if exposed to the market for a reasonable period of time in an "as is" condition where payment is made in cash or its equivalent. Implicit in this definition is the consummation of the sale with passing of title from seller to buyer under conditions whereby: both parties are well informed and acting in what they consider their best interests; a reasonable amount of time is allowed for exposure in the local market; financing, if any, is on terms generally available in the community and typical for the property type in its locale; and forecasting is applied in making an estimate of a future happening or condition, based on an analysis of trends in the recent past, tempered with analytical judgment concerning the probable extent to which these trends will continue into the future and reflecting an estimated impact, if any, on value.
Market Rate - An estimate of the average rate being charged by lenders for conventional, fixed rate mortgage loans.
Market Value - The most probable sales price of real estate established by the relocation appraisal process or, in the case of an amended value program, a bona fide offer from an employee-found buyer.
Marketing Period (By the Employee) - Period of time beginning when the employee lists his/her house for sale and ending when he/she accepts the employer/relocation management company offer or a contract to purchase under a Higher Offer Program. If the employee is required to market the home for a specific period of time before and/or after the Guaranteed Offer has been extended before being eligible to accept the Guaranteed Offer, this is referred to as a "Mandatory Marketing Period."
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Marketing Period (By the relocation management company or employer) - That period of time from the date the purchaser can begin selling a property through execution of a contract of sale.
Miscellaneous Expense Allowance - Generally covers expense items not specifically covered within the relocation policy. Examples of expenses that are considered part of the miscellaneous allowance, while not all-inclusive, include driver and automobile license fees, telephone installation, draperies and carpet removal or installation, pet transportation or boarding, veterinary health certificates, will preparation, baby-sitting fees, dues and fees forfeiture, and laundry and dry cleaning. Also referred to as incidental allowance, intangible allowance, or transfer allowance.
Miscellaneous Expenses - Typically, the unspecified costs incurred in the process of settling into a new home, such as fitting or cleaning rugs or draperies, installing a TV antenna, acquiring new licenses, hooking up appliances, etc.
Mortgage - A written and usually recorded document creating a lender‟s lien or claim against real estate, given by the buyer as security for money borrowed.
Mortgage Assumption Fee - If a mortgage on a property can be transferred from seller to buyer, and the purchaser wishes to keep this capability for marketing purposes or due to a favorable interest rate, many lenders may charge a fee to allow a purchaser to take over the mortgage.
Mortgage Commitment - A formal written communication by a lender agreeing to make a mortgage loan on a specific property, stipulating the amount, length of time, and conditions of loan.
Mortgage Insurance - A policy of insurance that protects the lender against a portion of the financial loss created by the default of the borrower.
Mortgage Insurance Premium (MIP) - Paid monthly by the borrower to HUD to set up a reserve account for protection of the lender against loss in the government -insured loans or to a private mortgage insurer for conventional loans. The MIP is ½ percent of the loan amount and is amortized over the entire mortgage life and added to the interest rate.
Mortgage Interest - The cost of borrowing mortgage money. Mortgage interest rates vary with the term and type of loan required.
Mortgage Interest Differential Allowance - Payment of some or all of the difference between the interest rate on the employee‟s mortgage in the origin location and the rate on their mortgage in the new location. Payments are generally made for a limited number of years, i.e. three years.
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Mortgage Release Fee - The fee associated with the document that removes the mortgage lien from the property records.
Mortgagee - The lender in a mortgage transaction.
Mortgagor - The borrower in a mortgage transaction who pledges property as security for a debt.
Multiple listing - The pooling, in a central bureau, of listings of properties for sale, which listings are held individually by members of a group of real estate brokers, with the agreement that any member of the group may sell properties and, in case of a sale, the commission will be divided among the broker making the sale and the broker who filed the listing.
Multiple Listing Service (MLS) - An arrangement among real estate board or exchange members in which each broker brings his or her listings to the attention of the other members. If a sale results, the commission is divided between the broker bringing the listing and the broker making the sale, with a small percentage going to the board.
- N –
National Home Purchase Companies - Companies that buy and sell homes for corporations on a contractual basis, nationally or regionally (regional defined for Worldwide ERC® purposes as operating in at least a 50-mile radius). Also known as Relocation Management Companies or Third Party Companies.
Negative Amortization - An increase in the principal balance of a loan which occurs when the monthly payments do not cover all of the interest costs. The interest costs which are not covered by the monthly payment are added to the unpaid principal balance. This can arise when there is a payment cap on an ARM loan. If the interest rate increases and the cap prevents the borrower from making larger payments to keep pace with the increase, the additional "interest on interest" is added to the loan's principal. Thus, over a period of time, the loan's balance can increase rather than decrease as is normally the case.
Non-Conforming Loan - Conventional home mortgages not eligible for sale and delivery to either FNMA or FHLMC because of various reasons, including loan amount, loan characteristics, or underwriting guidelines.
Non-Recurring Carrying Costs - Typically, charges associated with an inventory property, which are generally one time in nature. Examples include repairs, capital improvements, mortgage assumption fees, and assessments.
- O –
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Offer Before Appraisals - A situation that may occur in a homesale program when the employee secures a buyer prior to initiation and/or completion of the appraisal process. The home is turned over to the purchaser at the price established in the marketplace. Some employers may treat this as a buyer‟s value or amended value or an assigned sale transaction, while others may treat it as an appraised value transaction. The only difference is that there are no appraisals.
Offer Period - The period of time from the issuance of an offer to purchase by the purchaser until expiration of the offer. The length of the offer period varies widely.
Offer to Purchase - A contract of sale extended to an employee by the purchaser to buy the employee‟s property. The amount is computed according to the corporation‟s relocation policies or program relying upon the use of the relocation appraisal process.
Overhead Expenses - See Administrative or Indirect Costs or Expenses.
- P –
Percentage Fee - A charge to the employer by a relocation management company to purchase an employee‟s home. The employer pays the direct costs plus a management fee which is equal to a set percentage of the appraised value or selling price and charged on a per property basis. Performance Target - Typically, a goal for the purchaser (relocation management company in a home sale program) which is a function of predetermined total direct cost or achievement of a goal assigned to a specific category of direct expense (i.e., resale loss, broker‟s commission) or achievement of a goal for days in inventory on an inventory property which has been closed. Performance targets are sometimes developed on a sliding scale based on total direct costs.
Personal Property - Furniture and other items that are not affixed and can be readily removed without damage to the real property.
PITI (Principal, Interest, Taxes, and Insurance) - The most common components of a monthly mortgage payment.
Planned Unit Development (PUD) Fee - A monthly fee paid by the homeowner in a planned unit development that is considered a significant obligation. In addition to paying for maintenance of green space and roads, the fee often pays for swimming pools, clubhouse, and other costly maintenance items. Typically, lenders use a 2 percent rule to distinguish between DeMinimus PUDS (DPUDS) and PUDs. If the costs of maintenance and the amortization of the cost of improvement items divided by the number of units are greater than 2 percent of
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` the median home value, it is a PUD. PUDs must meet certain criteria to receive favorable financing, much like condominiums.
Plat - Map of a lot, subdivision, or entire community, which is done by a surveyor. It shows all boundary lines, improvements, and easements.
PMI - See Private Mortgage Insurance.
Point(s) - See Discount Points.
Potential Buyer - A party outside the home sale program who submits a bona fide contract of sale on a property with terms and conditions acceptable to either the employee, the purchaser, or both, depending upon the type of home sale transaction.
Prepayment Clause - A condition in a mortgage that allows mortgage payments to be made early without penalty.
Prepayment Penalty - A charge imposed on a borrower who pays off a loan early. The penalty compensates the lender for interest that would otherwise be lost. Prohibited on limited time by some state laws.
Pre-qualification - A process whereby a borrower may obtain an estimate of the mortgage amounts for which he/she would qualify prior to making formal mortgage application.
Primary Residence - A residence which the employee occupies as his/her principal residence.
Private Mortgage Insurance (PMI) - Insurance on a conventional mortgage loan written by a private company protecting the lender against loss in case of mortgage default. Typically, this insurance is required only on lower down payment loans with a loan to value ratio in excess of 80 percent of value.
Program Service Fees - Fees typically charged to the employer by the relocation management company or in-house program for having provided home sale services such as appraised value, buyer value/amended value, assigned sale, and closing assistance transactions. Program service fee structures vary with individually negotiated contracts. Examples may include appraisal service fees, management fees, performance target fees and other incentives, cancellation fees, fixed buy-out fees, initiation fees, special transaction fees, and flat dollar fees.
Property - See Home.
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Property Tax - A mandatory charge by a government levied on any kind of property that is either real, personal, or both. Normally, it is a charge at a fixed rate per hundred or per thousand dollars of assessed value.
Prorate - To apportion between a home seller and home buyer their proportionate share of an obligation paid or due (such as proration of taxes, condominium fees, etc.), usually fixed by varying local customs.
Proration of Taxes - To divide taxes between a home buyer and home seller proportionately to the date of closing or possession.
Purchase Agreement - See Offer to Purchase.
Purchaser - Either a relocation management company or the in-house program of an employer. The purchaser is the party responsible for issuing an offer to the employee to purchase his or her home according to the terms of the employer‟s relocation policy. The offer as based on an appraised value or by the offer of a potential buyer.
- Q –
Qualified Buyer - A person or persons, as distinguished from the purchaser, who submits a contract of sale on a property and ultimately closes on the property at an agreed-to price.
Qualifying Ratio - General guidelines that help establish a borrower‟s borrowing limits for the purpose of obtaining a mortgage.
- R –
Radon - A colorless, odorless, naturally occurring radioactive gas produced from the decay of natural radioactive minerals in the ground. Radon gas surfaces to the earth through pores in the soil and rocks and escapes harmlessly into the atmosphere. However, it poses a risk of lung cancer if inhaled in concentrated amounts. Problems can occur when radon seeps into houses through cracks and openings in basements and crawl spaces and accumulates in living areas.
Real Estate - Land and anything permanently attached to the land such as buildings, fences, and those things attached to the buildings such as light fixtures, plumbing and heating fixtures.
Real Estate Broker - See Broker.
Real Estate Commission - See Commission.
Real Estate Sales Agreement - See Contract of Sale.
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Real Estate Tax - A tax assessed by the local government against real property.
Realtor® - A professional designation given to a real estate broker who is a member of the National Association of Realtors.
Recording Fees - Charges for filing legal documents pertaining to real estate to make them a matter of public record.
Recurring Carrying Costs - Frequently reoccurring costs of holding a property in an employer's or relocation management company's inventory. Examples include insurance, utilities, mortgage interest, condominium dues, taxes, and homeowner association dues.
Referral Fees - A fee that is a portion of the broker‟s commission that is paid to another broker, pursuant to an agreement, which provided either a listing prospect or selling prospect. Also, any other fee or rebate paid to the purchaser for services rendered to the employee or property including payments from movers, title companies, carpet and paint suppliers, lenders, inspectors, appraisal firms, etc.
Reject or Rejected Offer Transaction - Allowing an offer to purchase to expire by an employee resulting in a cancellation fee being charged to the corporation.
Regular Transaction - See Appraised Value Transaction.
Relocation Appraisal - The process by which the Anticipated Sales Price of a residential housing unit, using the market data approach to value, is established. Also, the form by which the Anticipated Sales Price is reported. The purpose of this appraisal is to establish the Anticipated Sales Price for a relocated employee‟s residence and assumes an arm‟s length transaction. Most often done according to the procedures in the Worldwide ERC® Summary Appraisal Report.
Relocation Incentive - A payment made to relocating employees as an inducement for accepting an assignment that requires a transfer.
Rental Management Fee - A fee paid to an independent firm to oversee rental or leasing of a property. Technically, it could be a fee to manage any aspect of a rental property.
Renters - Either employees who rent their primary residence, or tenants who are leasing the employee‟s residence.
Repairs - Costs incurred to mend or restore deterioration brought about by decay, wear or tear, or partial destruction. A repair is intended to maintain the utility of the property. Repairs include expenses to correct items expected to be in working
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` order. Examples include repainting the inside and outside, tuck pointing, mending leaks, plastering, and conditioning gutters on buildings.
Replacement Cost - The construction cost at current prices of a property which is not necessarily an exact duplicate of the subject property, but which serves the same purpose or function as the original. This term also refers to the cost of a new item purchased to replace a damaged one, such as during the transportation of household goods.
Resale - The marketing, selling, and closing of an inventory property.
- S –
Sale Price - The agreed-to selling price of a property. Usually, the result of negotiation between seller and buyer and reflects the total amount of money to change hands at closing.
Sales Contract - See Purchase Agreement.
Sales Incentive Bonus - See Employee Incentive.
Second Mortgage - Any mortgage which is subordinate to a first or prior mortgage. See First Mortgage.
Secondary Mortgage Market - A market where existing mortgages are bought and sold. It contrasts with the primary mortgage market where mortgages are originated.
Security - In lending, the collateral given, deposited, or pledged to secure the payment of a debt. Security Deposit - Fund held to guarantee performance of terms. Most frequently seen in a lease wherein the tenant must deposit funds with the landlord for the life of the lease to guarantee performance and condition.
Seller - That person or persons offering to transfer a property to a buyer at an agreed-to price and terms.
Selling costs - Those costs associated with the marketing and selling of a property. Included in this section are real estate commissions and monetary concessions and incentives.
Senior Services - Relocation management services for seniors, including home marketing, home purchase, household good move coordination, settling in services, which include arranging (shelving or closeting) all unpacked household goods, setting up banking arrangements, initial grocery shopping, initial
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` decorating arrangements, etc. Departure services include estate sale arrangements, post-move cleaning, etc.
Settlement Costs - See Closing Costs.
Settlement Services - Services provided at closing by various parties relating to the sale of property.
Shared Appreciation Mortgage (SAM) - A mortgage with a lower than normal interest rate that allows the lender to share in any home appreciation after a given period. At that time, the homeowner must pay the lender his/her share of the appreciation, usually 40% minus any improvements and costs of appraisal or refinance. If the home is sold before the 10-year period, the same terms typically apply.
Software for Worldwide ERC® forms - Firms providing software to complete any of the Worldwide ERC® standardized forms (i.e. the Worldwide ERC® Summary Appraisal Report, the Worldwide ERC® Broker‟s Market Analysis and Strategy Report and the Worldwide ERC® Relocation Home Inspection Report).
Software Services - Relocation software such as relocation cost-tracking systems, tax gross-up programs, home-inventory management, and relocation administration.
Special Assessment - A tax levied on real property for specific purposes such as providing paved streets or new sewers.
Special Transaction - That aspect of the home sale program which, because of unusual selling situations such as value over a specified amount, excess acreage, or other conditions unusual on similar properties, require extra efforts on the part of the purchaser to sell the property. Typically, any home designated as special has a separate fee charged against it. Special Transaction Fee - Fees billed by a home purchase company for handling a property designated as a "Special Transaction."
Special Warranty Deed - A deed that warrants the title only with respect to acts of the grantor and the interests of anyone claiming by, through, or under him or her.
Specific Performance - A remedy available through a civil suit in which the court compels one of the parties to perform or carry out the provisions of a contract.
Spouse Employment Assistance - Career assistance consulting and/or counseling to spouse/partner of relocating employees.
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State Fees - Fees typically charged by state governments regarding the transfer and recording of real estate transactions. These may include revenue stamps, transfer taxes, or other transfer charges.
Storage - Placement of household goods in either short- or long-term storage facilities. May be provided in conjunction with the transportation of household goods.
Subcontractor - A specialist such as a plumber or roofer who is hired by the general contractor to perform a specific task on a construction job.
Subject Property - The employee‟s home, as identified on the Worldwide ERC® Summary Appraisal Report.
Survey - A plan prepared by an engineer or surveyor showing the boundary lines of the property and location of buildings in relation to the boundary lines. Often required by the lender as a condition of a loan.
Swing Loan - See Bridge Loan.
- T –
Tax Assistance - A payment by a corporation to an employee in recognition of the fact that many of the payments associated with relocation are considered income to the employee and thus are taxable. This payment, which is also taxable, may pay for all or part of the additional taxes incurred.
Temporary Housing - Living quarters provided for an employee on a nonpermanent basis.
Temporary Living Expenses - Expenses incurred by employees who must live in temporary quarters because they are to begin work in the new location before closing on a new home or leasing an apartment. Tenants in Common - Two or more persons in whom title to a single piece of real estate is vesting in such a manner that they have a common or equal right to possession and enjoyment of the property, but each holds a separate individual interest or estate in the property. Each owner may sell or encumber his or her respective interest or dispose of it by will, and if he or she dies without leaving a will, the heirs inherit the undivided interest.
Term - The period of time for which the mortgage loan is written.
Third Party Company - A service company supplier retained by an employer to provide home sale services to its relocated employees. In some instances, the third party company may administer a corporation‟s home sale program and policies.
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Synonymous with "purchaser," relocation Management Company, and home purchase company.
Third Party Contract - A negotiated basic order agreement that establishes the terms and conditions exclusively governing the anticipated purchase of home selling services and/or other relocation services by an employer from a third party company.
Third Party Program - A relocation services program in which an employer contracts with a third party company to purchase and resell relocated employees‟ homes and/or provide other relocation services.
Time in Inventory Incentive Fee - Typically, a performance-based fee that applies to appraised value sales only and depends on the length of time a home is in inventory - the shorter the time period, the greater the fee. This incentive fee may be paid on an individual property basis or may be paid based upon the average time in inventory for all appraised value sales during a specific period of time.
Time Value of Money - A financial concept that quantifies the relationship between the timing of disbursements and the impact upon overall home sale program costs. Generally equal to the interest which could have been earned over a period.
Title - A document that indicates rights of ownership and possession of a particular property. However, title in the real estate context means the sum of the ownership rights derived from deeds, wills, easements, and other conveyances. It is not normally a document by itself, but is the result of getting a correct, legally enforceable deed with adequate protection from defects. See Fee Simple.
Title Binder Fee - A fee charged for a commitment that a title insurance policy would be issued.
Title Company - A company that specializes in insuring title to property; in many states will act as the escrow agent in closing real estate transactions. Title Costs - Fees charged for items such as abstract or title search, title examination, owner‟s and lender‟s title insurance policies, and any other fee required to ensure the prospective buyer is receiving a fee simple or leasehold estate to the property, as applicable. Also known as Title Fees.
Title Evidence - The results of a search or examination of title in the form of a report, abstract, or opinion of title.
Title Insurance - Insurance that protects the lender or owner against undiscovered title defects that could cause loss of interest in the property.
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Title Search - An examination of public records, laws, and court decisions to disclose the past and current facts regarding the ownership of real estate for the purpose of discovering whether there are any mortgages, judgments, easements, tax liens, or other encumbrances on it.
Total Direct Cost - Typically a fee structure is based on the total direct cost of an appraised value home. The total direct cost usually comprises the acquisition/carrying costs, recurring carrying costs, disposition/selling costs (including loss on sale), and may or may not include interest on equity.
Transaction Type - The means by which a home is taken into the purchaser‟s inventory. Includes appraised value, buyer value/amended value, assigned sale, closing assistance, and special transactions.
Transfer Allowance - See Miscellaneous Expense Allowance.
Transfer Clause - Language included in a lease allowing a tenant to cancel a lease prematurely to avoid or minimize penalties paid to the landlord, in the event the tenant is transferred by his/her employer.
Transfer of Title - The act by which the title and ownership of property is passed from seller to buyer. Usually accomplished at settlement on closing.
Transfer Tax - A charge made by some governmental authorities for the purpose of raising revenue on the conveyance of real estate.
Trust Deed - An instrument in the nature of a mortgage that secures the payment of debt. Distinguished from a mortgage in that the title is transferred to, and held by, a trustee for the benefit of the holder of the debt. Also called a Deed of Trust.
Truth-In-Lending Act - A federal law requiring a disclosure of credit terms using a standard format, intended to facilitate comparisons between the lending terms of financial institutions.
- U –
Underwriting - The process of reviewing a completed mortgage application file and determining if both the applicant and the property meet the lending guidelines of the investor. Also, the process of reviewing an application for insurance to determine if the applicant and the property to be insured meet insurer‟s guidelines.
Utilities - Those services rendered by utility companies such as telephone, electricity, gas, and water.
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- V –
VA - See Veteran‟s Administration.
VA (or GI) Mortgage - See Veteran‟s Administration Mortgage.
Vacate Date - The date on which the employee moves out of the property.
Variable Rate Mortgage - A mortgage loan in which the interest rate may increase or decrease at specified intervals within certain limits, based upon an economic indicator. See also Adjustable Rate Mortgage).
Vendor Incentives - Any amount of money and/or other valuable consideration granted to a service provider that is not included in the normal fee. Examples include trips and bonuses used to promote increased sales activity on hard-to-sell properties.
Veterans Administration (VA) - An agency of the federal government which guarantees a portion of each VA mortgage for qualified veterans of the United Stated Armed Forces.
Veterans Administration Mortgage (VA or GI Mortgage) - A loan available only to qualified veterans and service personnel, according to their entitlement, which is guaranteed by the Veteran‟s Administration. This is a fixed-term mortgage in which the VA sets typically lower than conventional interest rates. No down payment may be required if the cost of the home equals or is less than the VA appraised amount. Buyers may not be charged points.
Veterans Administration Points - Those discount points charged by the lender to issue a VA mortgage. By law, these points must be paid by the seller.
- W –
Wrap-Around Mortgage - A method of financing whereby the homeowner assumes an existing mortgage and obtains additional funds from another source. The mortgagor pays the second lender at a composite interest rate based on the total amount owed. The second lender pays the first lender.
- X / Y / Z –
Zoning Ordinances - The laws of the local government establishing building codes and regulations of land usage.
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CRYE-LEIKE® RELOCATION SERVICES COMMISSION DISBURSEMENT FORM For CRYE*LEIKE AFFILIATES
Relocation Referral – Commission Disbursal
Date Processed______
Sales Associate ______
Office/Franchise ______
Listing____ Purchase____ Date Closed______
Transferee’s Name______
Property Address______
City ______State______Zip______
Sales Price $______Gross Commission______%
Referred Side Commission $______= ______%
45% of action side commission $______payable to:
® Crye-Leike Relocation 6525 Quail Hollow, Suite 400 Memphis, TN 38120
® Crye-Leike Relocation Staff ______
Please return a copy of this form with your check. Thank you for working with this customer!
Crye-Leike® Relocation Office Use Only: Fee paid to referral source $______Fee paid to Crye-Leike® Relocation $______
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CONTACT INFORMATION FOR REGIONAL RELOCATION DIVISIONS
Region/ Markets Contact Phone Email name number Atlanta, GA Judy Stocks 866-401-8228 [email protected]
Chattanooga, & E. TN Carol Nall 800-446-2830 [email protected] Knoxville; N. GA; & Huntsville, AL Little Rock; Central & Tammy 866-253-5333 [email protected] NW AR Cheney
Memphis & W. TN, Jan Harbor 800-243-9922 [email protected] Mississippi ; E. AR; Destin, FL; Alexandria, LA Nashville & Middle Lora Riddle 800-393-8893 [email protected] TN; Kentucky
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