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Relocation Terms

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Adjustable Rate Mortgage (ARM) : A mortgage loan in which the interest rate can fluctuate according to a specified index and timetable.

Adjustment : In an appraisal, an increase or decrease in the market value of a comparable property to account for a feature that the property has or does not have, which sets it apart from other comparables or the subject property.

Annual Percentage Rate (APR) : Represents the percentage relationship of the total finance charge to the amount of the loan.

Appraisal : An appraiser's written opinion of a subject property, as of a specific time or during a specified time period. It provides details for the process of determining estimated value of a property and the justification of the value.

Appraised Value : The value of a property as determined through a market value appraisal by a professional appraiser. In relocation, the appraised value of a subject property is generally determined by averaging several appraisals.



Binding Estimate : An estimate by a moving agent of the cost to perform specified moving services, including transportation and third party service costs. Once the moving agent agrees to the estimate, it becomes the total transportation cost paid by the shipper.

Bridge Loan : An intermediate loan issued to a borrower on a short-term basis, usually to provide temporary funds to the borrower until definite long-term financing is arranged. In relocation, bridge loans serve to assist employees in purchasing a home at the new location.

Buyer Value Option : A program for companies seeking to reduce tax gross-up expenses, which results in the management of the home-sale process from the start of the move through closing.



Claim : A written statement requesting reimbursement for an item that is lost or damaged while in the van line's possession.

Closing : A meeting among the parties and/or their representatives to the sale contract. After settling the details that relate to the sale of a property, the seller signs and delivers the deed to the buyer. The buyer authorizes payment to the seller and the home sale transaction is completed or "closed."

Closing Assistance : Programs that allow the corporation or third party to assume homeowner's selling responsibility during the closing.

Closing Costs : Costs resulting from the home sale transaction which include mortgage points, origination fees, title fees, appraisal fees, and legal fees.

Competitive Market Analysis: A marketing analysis of a subject property performed by a real estate broker or sales agent. The CMA reflects the best estimate of value as determined by a broker or sales associate who estimates value using comparable sales, recent listings, and knowledge of the local real estate market. This is also called a Broker Price Opinion.

Contingency : A provision negotiated in a sale contract that can void the contract.

Conventional Mortgage : A fixed-term and interest rate mortgage, with level payments that fully amortize the mortgage after a specified period of time. Most commonly a 30-year, fixed interest rate mortgage for which the borrower makes a 20% down payment is referred to as a "conventional mortgage."

Cost-of-Living : A current comparison of costs between two locations.



Destination Services: Assistance provided to the transferee in a new location, including but not limited to Home-Finding Assistance, Movement of Household Goods, and Temporary Housing.

Direct Reimbursement : A program whereby the corporate client directly reimburses the transferee for relocation related expenses.

Discount Points : In the mortgage industry, one point is equal to one percent of the loan. Discount points are the sum of money charged by a lender to reduce the interest rate of any particular loan.



Equity : The interest or value which an owner has in real estate over and above the existing liens against it.

Equity Loan : A sum of money borrowed at an interest expense against the equity on a homeowner's home. The equity loan is used to assist a relocating employee in purchasing a new home before the sale of the present home.

Escrow : The closing of a transaction through a third person called an escrow agent or an escrowee, who receives certain funds and documents to be delivered upon the performance of certain conditions.

Expense Tracking : Tracking and maintaining database of relocation related expenses, taxable and non-taxable, by employee, division, corporation, etc. Customized, comprehensive, reporting options are provided to clients, as well as year-end reporting for employee tax purposes.



Fair Market Value : The appraised value of a subject property. Generally refers to the amount that the corporation has offered a relocating employee for the purchase of his or her former home.

FHA Mortgage : A residential mortgage from an approved lender and insured by the Federal Housing Administration. The down payment on an FHA loan usually is less than that for a conventional mortgage. The FHA does not lend money, but nominates approved lenders.

Fixed Expenses : When calculating the cost of homes in inventory, corporations categorize fixed expenses as those housing costs that do not vary from year to year.



Group Move : The relocation of a significant number of employees, both renters and homeowners, as a group, on a planned and scheduled basis. There are both short and long term group moves and can involve several locations. Group moves range from a few individuals to more than 100 employees.



Homefinding : Assistance provided to relocating employees during their house hunting trips. This also includes area counseling and community information.

Household Goods : The personal effects and property transported from residence to residence.



Inspection Services : The inspection and subsequent written report process which documents the condition of a home prior to its sale. Defects, if discovered, are identified and appropriate remedies are proposed.

Interim Housing : Short-term housing available to a transferee prior to the time permanent housing becomes available for occupancy. (also referred to as Temporary Housing)



Line Haul : In the transportation of household goods, the transportation charge based on the weight and the number of miles the goods are transported.

Lump Sum Relocation Allowances : A single payment made to the transferee that covers more than one, and often many reimbursable expenses.



Market Value : An estimate of the price to be paid for a property by a typical buyer based on current forecasted market trends. The highest price that a ready, willing, and able buyer pays and the lowest price that a ready, willing, and able seller accepts in the home sale transaction.

Miscellaneous Expenses : The costs incurred in the process of settling into a new home, such as cleaning rugs or draperies, installing electronics, acquiring new licenses, and hooking up appliances.



Policy Development : Consulting provides guidance for the development of an effective company relocation policy.



Real Estate Commission : A payment to a broker for services rendered, such as in the sale or purchase of a home. The commission is either a flat fee or a percentage of the selling price.

Relocation Policy : The company designed, governing document related to relocation policy and related administration

Relocation Package : A collection of information and materials specific to the city or area to which a transferee is relocating.

Relocation Counselor : Administrator of the corporate client's relocation program. The relocation counselor serves as the single point of contact for the transferee from start of the program to the completion of the relocation process.



Shuttle : A smaller truck that transports household goods to the full sized moving van, if the current residence is not accessible by the larger van.



Tax Gross-Up : An amount added to gross income to compensate employees for the income tax incurred on relocation allowances and reimbursements. This enables the relocating employee to receive net income due after taxes.

Tiered Relocation Plans : Provides summary of relocation reimbursable expenses to current and newly hired employees.

Temporary Housing : see Interim Housing

Third Party Services : Services provided by a company other than the designated Relocation company.

Transferee : The employee being relocated to the new job location. This can be an existing employee or a new hire.

Title : Evidence of legal ownership of the property.



Valuation Coverage : The van line coverage that is offered to reimburse you in case your shipment is lost or damaged.

VA Mortgage : A mortgage loan on an approved property made to a qualified veteran by an authorized lender and guaranteed by the Veterans Administration to limit possible loss by the lender.




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