Home Buying in 70433>Question Details

Ruthann, Home Buyer in New Orleans, LA

What does it mean when a real estate description states:Relo documents required?

Asked by Ruthann, New Orleans, LA Sun May 4, 2008

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Anytime you are involved with a relocation sale, it is a good idea to discuss with your lender how familiar they are with the specifics involved with Relocation. The relocating employer generally has the relocation company buy the house first from the relocating employee, and the new buyer will actually purchase from the relocation company. There is a significant tax benefit in doing it this way for the relocating employee. There is a "double deed" situation involved, which is confusing to some lenders who are not experienced in such things, and underwriting can be held up. I recently had a situation where the buyer's lender (not my client) simply could not function within the terms required by the relocation company, and we were at an old fashioned "stand off" until somebody was willing to budge. The investor on the loan was a foreign investment group, and was a nightmare to work with.

Check early with your lender and verify that they are accustomed to the paperwork and procedures involved with relocation.. if they aren't, trust me, find another lender early in the transaction!

Good luck out there -
0 votes Thank Flag Link Thu Aug 22, 2013
This means that the seller is moving with the assistance of a relocation company, which likely has been retained by the seller's employer. Typically the relocation company will take over management and ownership of the property once an acceptable offer is received, and the amendments (relo documents) will put this in writing. Also, the "seller" may need to be stated as the relocation company, not the current owners. The relo documents may shorten the standard contingency periods, so be sure to read them carefully before signing.
0 votes Thank Flag Link Sun May 4, 2008
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