In the real estate market, there are innumerable sellers that avail the employer assisted relocation program. This is also called a “relo program.” Here, a home on the market becomes available on account of it being vacant due to an employee getting transferred to some other place out of the town. Thus, with the relocation firm’s aid, the sale of the vacant home is made. Such firms are hired by companies in order to help a transferred employee to a rented place and sometimes to sell his/her home and even help find a reliable moving company.
A relocation company generally takes some time, say, about a week, to respond to a Relo offer. The offer many a time requires a pre-approval letter from a lender. In addition, there are the buyer’s loan application form, the verification of the buyer’s fund details, his income, credit-checking, etc, that need to be scrutinized and verified. Whatever be the buyer’s offer price, it is conveyed to the relocation company in case the company is committed to buy the property of the seller. Sometimes, there are even verbal negotiations done in case of Relo offers, but until and unless the parties sign the contract papers, such deals are not considered as binding. Once the house is on the market, the relocation company advises on the price of the property and advertises its sale. This may take a few months. During this time, the house owner legally retains the ownership of his home. If a sale transaction is finalized during this period, the further proceedings begin getting under way and then it becomes a full-fledged business transaction that does not have to deal with the emotional attachments of the seller that would have been, had it not been sold. But in case the home remains unsold, the relocation company might partly or wholly buy it out, so that the employer is free to buy a home in the place where he has been transferred.
The relocation company then urgently submits or sends all the necessary documents pertaining to the contract, duly signed by all parties, to the relocation co-coordinator, who appraises them for legal compliance and appends to them the terms and conditions that were verbally agreed upon by the owner and the buyer. After that, the signatures of the owner and the representative of the relocation company are done on the contract papers and also on the buyer’s purchase contract, wherever required and it is again resent to the agent. The whole procedure takes considerable time as there are a lot of legal formalities to be complied with. In the meantime, if it happens that there is another offer made for the property, the agent has to subject it through the same procedure once again as he is bound to present whatever offers have been made to the seller.
Once all the requisite documents are in place and in compliance with the legal requirements, the final signature of the relocation company is done on the seller’s closing documents and on the deed, by virtue of which the buyer gains the title to the property.
The real estate news is that there is a dip in the mortgage rates brought about by the investors, believing that the Fed may, after all, supply the monetary stimulus to lift the economy. The benchmark 30-year fixed rate mortgage fell from 3.8% to 3.79% (Source: Bankrate.com). Will that later have an effect on the rates of the Relo loans?
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