Your Corporate Relocation questions answered
Home Owners | Real Estate | Relocation | Tips | Title Insurance |
MMH serves as local counsel for several national Relocation Management Companies (RMCs). Our firm has many years of experience handling corporate relocations, and we understand the specific needs of Relocation transactions. We are also active members of both local and national Relocation industry groups.
Relocation transactions are processed quite differently than your standard purchase a sale. To help you better understand, we’ve answered some common questions below about the process, frequently used terms and more.
What is a corporate relocation transaction?
Corporate relocation programs are an employee benefit that many companies offer their employees when the employee moves to a new location. The employer often pays the moving costs and transactional costs related to the sale of the house.
If I purchase a home that is in a corporate relocation program, who is the actual seller?
The employer will usually outsource the corporate relocation services to a Relocation Management Company (RMC). Often the RMC will “cash out” the employee and take equitable title to the house. In that capacity, the RMC will step into the shoes of the employee and take on the role of selling the house. Buyers negotiate the terms of the Purchase and Sale agreement directly with the RMC.
Are there any differences in the standard Georgia real estate contract and the contract signed by the RMC?
Typically the RMC will use the standard Georgia Association of Realtors form, but they will attach a Relocation Rider to the contract that operates to amend several terms in the contract. Buyers are encouraged to examine the Relocation Rider carefully as it modifies many important terms in the standard form.
Who is the transferee?
A transferee is the person who the company is relocating.
Are relocation properties usually cheaper to purchase?
According to this bankrate.com article, not exactly.
“While relocation sales don’t necessarily translate into fire-sale prices, buyers can count on the home to be fairly priced for its market, says Michael Nimer, chief operating officer of OneSource Relocation, a relocation firm in Marietta, Ga. ‘If we buy a home for $200,000 for a client, our goal is to get as close to that $200,000 (as) possible,’ Nimer says. ‘We’re not trying to make more money, just trying to get back the money we spent.'”
How does title insurance benefit a transferee and they company they work for?
According to this Bristol Global Mobility article, there are two specific benefits to title insurance in a relocation transaction:
- Protects the transferee from many title problems with their new property that may distract from their job responsibilities and could potentially cause significant financial hardship
- Can save significant uncertainty and expense if the transferee is subsequently relocated again, and title defects are discovered on the property
Do you have more questions about the relocation process and/or our relocation department? Send us an email at firstname.lastname@example.org.
Written by Patrick McManamy and Megan Blanks