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: WERC Summary Appraisal Reports; Broker’s Market Analysis; inspections; certificates of occupancy; bank information; miscellaneous acquisition costs; insurance, utilities, and property taxes; 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.

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 that support the home sale operation such as legal, tax, financial, auditing, human resources, and purchasing. Costs 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. Also known as Indirect Expenses or Indirect Costs.

A charge to the employer for upfront payment of costs to be incurred by 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 known as Acquisition Billing.

A local agent who is picking up the household goods being loaded from a residence.

Airlines assess charges based on a minimum.

The most important document in air freight transportation. It serves as a contract for carriage and shows all relevant information about the shipment, the shipper, and the consignee.

The air shipping contract that lists the dates, services, and actual charges involved in a move and receipt for a shipper’s belongings. Also referred to as Airway Bill.

See Buyer Value Option (BVO).

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.

The relocation management company (RMC) executes a contract with identical terms and net sales price with the employee. For an amended value (AV) home sale, the RMC as the seller, executes the original contract with the outside buyer, at the price and terms originally offered by the buyer to the employee. The seller’s broker and the buyer’s broker will receive their respective commissions as agreed upon in the terms of this real estate transaction. Additionally, the company will bear the standard closing costs as per policy.

A charge to the employer’s in-house program or a relocation management company (RMC) 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.

The anticipated sales price of real estate established by the relocation appraisal process.

A relocation program is established through an agreement between an employer and a purchaser, often a relocation management company (RMC) or employer. The process starts when the purchaser learns of an employee’s relocation. The purchaser contacts the employee to order two independent home appraisals to estimate market value, with either the purchaser or the employee selecting the appraisers. If the appraisals are within a specified range (typically 5%), their average becomes the appraised value. If not, a third appraisal may be obtained for valuation purposes. A review ensures appraisals are competent and complete.

Once an appraised value is established, the purchaser offers to buy the home at this price in an offer to purchase contract. The employee can accept this offer within 30 to 90 days by signing and returning it along with other documents. Upon receipt, the purchaser signs and pays part or all of the employee’s equity in the home. After vacating, any remaining equity is paid at closing. As contract buyer, the purchaser assumes ownership responsibilities and related expenses for maintaining and disposing of the home.

A charge to the employer for upfront 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. See Advance Billing.

Research and information provided by relocation services or real estate firms to a relocating family in the new area. Examples 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.

An employee of the company who leaves his home country or city of employment to work in another country or city for a temporary period of time, normally longer than three months. Also known as a Transferee.

The method or manner by which a right, obligation, or contract is transferred from one person or another.

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.

Bill of Lading (BL/BOL)

The original shipping contract that lists the dates, services, and actual charges involved in a move and receipt for a shipper’s belongings.

Broker’s Market Analysis and Strategy Report (BMA) 

A WERC-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.

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.

Buyer Broker Destination Services 

Firms providing buyer brokerage services at the destination.

Buyer’s Value Option (BVO)

A buyer value option (BVO) transaction is a type of amended value (AV) transaction that does not involve appraisals or an initial offer to the employee. Sometimes called “amend-from-zero” or “offers prior to appraisal,” it only includes an unconditional offer at the “buyer value,” which is the fair market value based on a potential buyer’s offer.

The process starts when the relocation management company (RMC) or in-house relocation department is notified of the employee’s relocation. They explain the BVO and provide home marketing and broker selection assistance. The employee markets their home, entering a listing agreement with a selected real estate broker that includes an exclusion clause stating no commission will be earned if the employee sells to the purchaser.

If a potential buyer emerges, the purchaser verifies their written offer and, if deemed bona fide, makes an equivalent unconditional offer to buy from the employee. Adjustments are made as necessary to compare both offers on an all-cash basis for employer benefit. This ensures marketplace offers are reasonable, such as adjusting for points paid by the employee in exchange for a higher purchase price. Following this, procedures align with those outlined in the amended value (AV) option.
Also known as a Amend-from-Zero transaction.

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 appraisals, inspections, and similar relocation services which are in process.

Carrier Disassembled (CD)

Items disassembled by the mover during packing and loading, usually furniture or large pieces, to ensure safe transport and efficient loading. The term “CD” is used on packing inventory forms to indicate mover-disassembled items.

Carrier Packed (CP)

When a moving company packs a box for the relocating employee, it will be noted as “CP” on an inventory sheet, if an inventory is performed

Cash on Delivery or Collect on Delivery (COD)

Term used to state that the relocating employee is responsible for charges at the time of delivery.

Certificate of Coverage (COC)

A form that is completed and submitted to the home country government to eliminate dual social tax coverage. This occurs when the employee is required to pay social taxes, together with the employer, to both the home and host country on the same earnings. The Certificate of Coverage (COC) assigns coverage to just the home country and exempts the employer and employee from paying social taxes in the host country. Also referred to as Totalization Agreements.

Certified Relocation Professional (CRP)

The Certified Relocation Professional is a highly regarded designation recommended for all those within the U.S. domestic relocation industry who are dedicated to the successful mobility of employees, and who consistently seek to better themselves and the service they offer through continuing education in this specialized field.

Client Costs

Represents all direct costs associated with the employment of an individual. This is the gross salary of the employee plus social contributions payable by the client. All costs related to international assignments can also be added.

Client Social Contributions

These are the compulsory contributions that the client must pay to the social security agencies on behalf of an employee. They are added to the gross salary in order to obtain the client cost. Some contributions may be compulsory or voluntary.

Closing Assistance Option 

A relocation policy applies when an employee finds a potential buyer for their home before joining a corporation’s relocation program and before an appraisal is established. Typically, the employee has signed an agreement to sell the home, and the buyer agrees to pay the employee’s equity and facilitate the closing. In some cases, the employee may assign the sale agreement to the buyer, potentially relieving them of obligations once this offer is executed. If the closing with the buyer fails, the transaction defaults to an appraised value process based on the agreement price. Alternatively, if obligations are not relieved until closing occurs and it falls through, the home returns to the employee for further action, which may include processing as an appraised value transaction.

Contract Pending Report (CPR)

Document used to provide closing details for a relocating employee’s new home purchase. Details include relocating employee information, sales, commission, and referral fee data, as well as supplier information for home sale partners.

Core/Flex Policy

A Core/Flex relocation package combines essential, pre-defined relocation benefits (the “core”) with a menu of optional, flexible benefits that employees can choose from based on their individual needs (the “flex”). The program is administered and managed by the relocation management company (RMC) with minimal core benefits and a flex budget that is managed by the RMC in partnership with the employee.

Corporate Housing (CH) / Temporary Housing 

A company policy will typically provide the employee and their family members temporary living while they await the availability of their permanent residence or their household goods to arrive.

Cost Estimate (CE)

A detailed estimate of the expected total costs necessary to send an employee to a specific host location for a determined period. Generally including salary, allowances, housing, tax, relocation, and other assignment-related costs. Also referred to as Cost Projection.

Cost-of-Living Allowance (COLA) 

An allowance or differential paid to the employee to provide the same goods and services purchasing power in the host location that they have in the home location based on their family size and salary level. The Cost-of-Living Allowance (COLA) is intended to cover the excess cost to purchase the host country market basket of goods and services over the home country goods and services. Also referred to as Goods and Services Differential (G&S) or Commodities and Services Differential (C&S).

Cultural Training (CT)

A program developed to assist employees in navigating a new culture and adapting to new attitudes, beliefs, lifestyles, and ways of doing things.

Day of Move/Final Move (DOM/FM)

Transferring employee and family’s final move trip from the old location to the new location.

Declaration of Value/Valued Inventory List (DOV/VIL)

A numbered, detailed list used to document the declared value of a shipment for liability coverage during transport or storage. It typically includes item descriptions, conditions at the time of packing, and any necessary remarks. The relocating employee must sign the list at both the pack/load and delivery, noting any discrepancies. For international shipments, sufficient detail is required to meet customs clearance requirements. A separate list is needed for each shipment type (air, surface, and storage).

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.

Destination Delivery Charge (DDC)

A charge, based on container size, is applied in many tariffs to cargo. This charge is considered accessorial, is added to the base ocean freight, and covers crane lifts off the vessel, drayage of the container within the terminal, and gate fees at the terminal operation.

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.

Destination Service Provider (DSP)

A vendor which provides an array of services to relocating employees and families in the destination location. Services may include help with home finding, acclimation support, rental assistance, short-term housing, spouse/partner assistance, home vacate inspections, and so forth.

Direct Bill

A term used to describe any service booked on behalf of the employee—usually initiated by the client and fulfilled by the relocation management company (RMC). Benefits most often billed directly include household goods move (van lines), final travel, household goods storage, and temporary/short-term housing.

Direct Reimbursement Program (DR)

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.

Directed Offers 

An offer to purchase in which the employer has directed either the relocation management company (RMC) 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 taxable to the employee as compensation.

Discard and Donate (D&D)

A program that allows relocating employees to donate or discard of household goods during their move.

Domestic Temporary Assignment/Temporary Domestic Assignment (DTA/TDA)

May be short- or long-term in duration and applies to both U.S. domestic and international.

Door-to-Door (DTD)

A term meaning the household goods are transported directly from the origin residence to the destination residence without intermediate storage or handling at a warehouse.

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.

Duplicate Housing (DH)  

Financial assistance that may be provided by a corporation in the event the relocating employee purchases a new residence before selling the prior residence and is incurring costs to maintain both residences.

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.

EE

Commonly used abbreviation for “transferee” or “assignee.” Not an official term, but often used in shorthand and in conversation.

Efficient Purchaser Index (EPI)

Relative to the Cost-of-Living Allowance (COLA), over time an employee learns to make purchases in the host country in a more cost-efficient manner than when they first arrive. The employee will no longer shop for brands that are familiar to them at a higher cost outlet but over time will shop in local outlets and purchase local brands. External suppliers provide an index that measures this change in shopping patterns over time and incorporates these changes to provide an alternative to the standard COLA table.

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.

Estimated Time of Arrival (ETA)

The estimated time the shipment will arrive at port of entry or estimated time the shipment will arrive at the destination.

Estimated Time of Departure (ETD)

The estimated date the driver will depart with the shipment from the original location, or the expected departure date of a vessel/plane from the port or origin.

European Relocation Association (EuRA)

Industry body for DSPs, initially for Europe, but now worldwide.

Expatriate (Expat)

Within the mobility industry, defined as an employee who is living and working at the request of their company on a temporary basis in a country other than their home country of employment origin.

Expat Index

Index that compares the prices of a basket of goods and services in a home country compared to the prices of an identical basket of goods in a country of assignment. For this index, the assignee consumer does not exactly fit the median local consumption pattern. In the host country, the assignee will not be able to make as reasoned consumption choices as a local consumer or will purchase imported products which cost more. This difference in behavior is an added cost in consumption compared to a median consumer. From a methodological point of view, we compare the price of a median basket in the home country with the price of the basket at the 75th percentile in the host country. Comparing the price is also weighted by the difference in standard of living per capita (GDP (PPP)/capita).

Experience Check (X-Check)

At Altair Global, an X-check is a pulse survey sent to the relocating employee based on a milestone in the relocating employee’s journey which gauges their sentiments and experience to date, which allows the Customer Experience Consultant to identify any gaps and course-correct in the moment as needed.

Experience Management (XM)

Experience Management (XM) is more than a product or service that Altair Global offers our clients. It is our end-to-end approach for providing exceptional experiences to everyone who interacts with Altair Global – our clients, their employees (our customers), our supplier partners, and our internal team members.

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.

Extended Business Trip/Extended Business Traveler (EBT)

Business travel projected to last less than three months. Travel between home location and host location to attend meetings, training, supervise virtual team, and/or complete a defined task, goal, or project.

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.

Finder’s Fee 

An amount charged by and paid to agents who specialize in helping employees find a rental residence.

Fixed Buy-Out Fee 

Typically, a charge to an employer by a relocation management company (RMC) to purchase a relocating employee’s home. Usually expressed as a percentage of appraised value and 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, such as annually, and the adjustments may be calculated based on a variety of factors, including actual cost experience and economic index rates.

Flat Dollar Fee 

Typically, a charge to an employer by a relocation management company (RMC) 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.

Foreign Service Premium (FSP) 

A payment for employees who accept an assignment. It has been traditionally intended to recognize adjustments to different cultural, social, and business environments, and separation from home country relatives, friends, and business associates.

Full Container Load (FCL) 

An exclusive use of an ocean container regardless of the container size. This term is used when an employee has the sole use of a container, even if it is not completely full.

Full Truck Load (FTL)

This term is used when an employee has the sole use of a truck, even if it is not completely full.

Global Mobility Specialist (GMS)

The Global Mobility Specialist (GMS) designation signifies that one is specialized in the field of global workforce mobility and is committed to ongoing education to grow their expertise.

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.

Guarantee Against Loss Program 

Typically, a type of home sale 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 Purchase Offer/Guaranteed Buyout (GPO/GBO)

The offer by the relocation management company (RMC) or the employer to purchase an employee’s principal residence, typically based on the average of two appraisals, with a fixed acceptance period.

Guarantor Fees

In the absence of U.S. credit history, some landlords will request a guarantor in NYC, NJ, and other competitive rental property markets. Guarantor fees are typically one month’s rent, but sometimes less.

Home Finding Trip (HF/HFT)

A home or apartment search in the new area, based on an employee’s specific requirements and preferences, taken after the employee has decided to relocate.

Home Leave (HL)

A return trip for an employee, spouse/partner, and eligible dependents living abroad to visit the home location to maintain ties with family, friends, and the home office. Companies may reimburse airfare cost or establish an annual cost and pay as an annual allowance. Also referred to as Annual Trip.

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 Home Sale 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 Purchase Offer (GPO) acceptance period. Some employers require a mandatory marketing period before the employee is eligible to accept the GPO.

Home Sale Assistance (HAS)

Reimbursement for expenses incurred in selling and/or purchasing a residence.

Home Sale Program 

That part of an employer’s relocation policy designed to facilitate a 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 (RMC) or a corporate in-house program, by appraised value, amended value (AV), buyer value option (BVO), or assigned sale transactions.

Host Country Housing (HCH)

Permanent housing in the host location where the employee and family reside during the assignment.

Household Goods (HHG)

Personal property that an individual or family owns and will have moved during the relocation. This can include appliances, furnishings, and any other personal items.

Household Goods Transportation Insurance 

Insurance for household goods that covers items during packing, transit, storage, and handling at warehouses. The coverage amount is typically based on the value of the goods or the total weight of the shipment, with certain limitations.

Household Goods Transportation Valuation 

Valuation is an estimate of the value of the goods being moved, not insurance. It determines the maximum liability for loss or damage and is typically provided by the carrier, with varying levels of scope and coverage limits.

Housing Benefit Allowance

Financial assistance related to the provision of accommodations in the host country for the assignee and accompanying family. This allowance may or may not be expressed as the total cost of foreign housing, or alternatively as the foreign housing cost net of a home country housing norm.

Housing Offset Contribution

An amount factored into the employee’s housing differential allowance payments which approximate the cost he or she would have incurred to maintain a residence in the home location. The amount often varies by salary and family size. A company may elect to use the actual amount the employee pays or use norms provided by a relocation services company. This may also be called a housing offset or housing norm.

Hypothetical Tax (Hypo Tax)

The approximate amount of home country tax, calculated on home country base salary and bonus/incentive compensation that the employee would have paid had they remained in the home country. Generally, includes a calculation for a home state/province/canton tax as well as social taxes. Hypothetical tax is withheld from the employee’s home payroll and actual tax deductions are discontinued during the time of the assignment. The hypothetical tax withheld from the employee’s income is retained by the company. Also referred to as Theoretical Tax Withholding.

Incentive/Cost Performance Fee 

Typically, a charge to an employer by a relocation management company (RMC) to purchase and sell an employee’s home in which the employer pays direct costs, but the management fee is determined by the RMC’s performance and can vary by time, cost, or quality of service.

Indirect Expenses or Costs 

Typically, a relocation management company’s (RMC) expenses related to the operation of a home sale program, which 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, Administrative Costs, or Expenses.

In-house Program 

A relocation service provider or group created within a corporation to provide home sale services to employees being relocated. In some instances, the in-house program staff may administer the corporation’s relocation policy as well as the home sale program.

In-Transit Storage

The service where household goods are temporarily stored by the moving company in route to the destination. This occurs when the goods cannot be delivered immediately to the final location. This is also commonly referred to as storage in transit (SIT).

Initiation

That part of the home sale 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 (RMC) to cover the administrative costs of establishing employee contact, setting up files and databases, and providing communication material upon initiation of an individual.

Inpatriate (Inpat)

The transfer of foreign employees to work in the home country of an international organization on a temporary or permanent basis.

KPI (Key Performance Indicator)

Quantifiable measure of performance over time for a specific objective/metric commonly used in an SLA (Service Level Agreement)

Language Training (LT)

The employee and dependent family members may not speak the language of the country of assignment and will be provided training in the business language of the host location by a service provider. Training may be provided before departure and/or upon arrival in the host country through a language training provider.

Less than Container Load (LCL)

Refers to a shipment that does not fill an entire shipping container. In these cases, household goods from multiple shippers are consolidated into one container. This can help reduce overall shipping costs.

Less than Truck Load (LTL)

Refers to a shipment that does not fill an entire truck. Household goods from multiple shippers are combined into on truckload for transport. This can be more economical for smaller shipments.

Letter of Assignment/Letter of Understanding (LOA/LOU)

A document prepared in advance of the employee’s assignment/relocation date to specify the details of the assignment. This may include home location, host location, length of assignment, compensation, relocation benefits, and tax treatment. Also referred to as Terms of Assignment.

Local Index

Index that compares the prices of a basket of goods and services in a home country compared to the prices of an identical basket of goods in a country of assignment. For this index, the assignee consumer will have a behavior identical to that of a local consumer. This index applies to international assignees that adapt their consumption to that of local residents. From a methodological point of view, we compare the price of a median basket in the home country with the price of a median basket in the host country.

Local National Plus 

Local national salary, plus benefits typically provided for foreign assignees/expatriates such as tuition fees, housing allowance, and flight tickets.

Localization/Localizing

The transitioning of an assignee to an employment status/package in the host country equivalent to that of host country nationals. The length of transition may vary among different organizations and industries.

Long-term Assignment (LTA)

The temporary assignment of an employee projected to last for a period of one to five years from their home country to a host country to complete a defined business objective, such as fill a managerial or technical skill gap, build management expertise, launch new endeavors, technology transfer, develop local business relationships, global market opportunities, or transfer corporate culture. Dependent family members typically accompany the employee on assignment.

Loss-on-Sale Protection 

An aspect of some home sale programs which calculates the difference between the appraised value offer and 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.

Lump Sum 

Lump sum programs offer the flexibility to use money paid to the employee to use at their discretion on their desired relocating services and expenses. An allowance paid to an employee, typically “earmarked” and intended to supplement or cover specific relocation-related expenses such as home finding, temporary living, and final move travel. The amount is distributed as soon as permissible per the terms of the relocation policy, which can be as early as authorization. The employee is responsible for budgeting the money paid to them in their lump sum payment.

Management Fee 

An amount charged to the corporation by a relocation management company (RMC) 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 RMC’s total cost performance and/or employee service satisfaction.

Major Component Assessment or Inspection (MCA/MCI)

The scope of the Major Components Inspection (MCI) is limited to major systems and components that affect the structure of the home. This is a visual examination reporting on apparent defects that pertain to 1) Structure; 2) Unsafe or hazardous conditions; and 3) Inoperative systems and those that require corrective action. This report does not include cosmetic-related problems, municipality regulations, code restrictions or violations (unless coincidentally noted by the above guidelines), lender guidelines, marketability, or desirability factors that could affect the property transaction in the future. The inspection is based on an “as is” determination of the above outlined systems and does not consider potential or possible future problems, issues, conditions, or circumstances which could affect the different systems or components of the home.

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 (RMC) 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.”

Marketing Period (By the RMC or employer) 

That period of time from the date the purchaser can begin selling a property through execution of a contract of sale.

Marketing Services Only (MSO)

The home sale type where the relocating employee receives marking and listing assistance but would not typically receive a benefit for closing costs or broker fees when the property sells.

Miscellaneous Expense Allowance (MEA) 

An allowance to cover out-of-pocket expenses not otherwise covered by policy such as moving expenses (fixtures, fittings, drapes, carpets, appliances, deposits, driver and vehicle license fees, pet transportation or boarding, baby-sitting fees, etc.). The employee does not need to provide receipts or documentation of how the allowance is used. Also known as Relocation Allowance, Repatriation Allowance, Miscellaneous Relocation Allowance, Resettlement Allowance, Incidental Allowance, Intangible Allowance, or Transfer Allowance.

Ocean Bill of Lading (OBL)

The surface shipping contract that lists the dates, services, and actual charges involved in a move and receipt for a shipper’s belongings.

Ongoing Allowance (OGA)

Payments made to employees for a specific purpose for the duration of an assignment. These payments are usually paid for such purposes as rental payments and schooling costs.

Origin Agent (O/A)

Assigned by the moving (household goods) company to act as a representative in the origin location.

This is the process of preparing household goods for shipment. The assigned mover carefully packs items into boxes or containers and loads them for transport. This includes wrapping and crating (if needed) to secure the goods and prevent damage during transit.

Packed by Owner (PBO)

Refers to household goods that are packed by the customer rather than the moving company. This notation is typically used on inventory forms to indicate that the mover is not responsible for any damage or loss to items packed by the owner, as the mover did not handle the packing process.

Percentage Fee 

A charge to the employer by a relocation management company (RMC) 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.

Points-based Budget

A benefit structure that promotes flexibility, cost-efficiency, customer satisfaction, and streamlined administration. This type of budget assigns distinct point values to various benefits as dictated by policy. Benefit categories can include temporary housing, pet shipment, car rental, and more, and are clearly defined in accordance with the employee’s policy. Relocating employees are allocated a predetermined number of points that they can distribute across benefit options, empowering them to customize their selections according to their unique needs.

Port of Entry (POE)

Port where cargo is unloaded and enters a country (port, airport, or land border).

Port of Departure (POD)

Port where cargo is loaded and leaves a country (port, airport, or land border).

Pre-assignment Visit

A trip to the host country for the assignee and other accompanying family members prior to the start of the assignment, to make certain arrangements and view the possible new surroundings. Same as a Home Finding Trip.

Program Service Fees 

Fees typically charged to the employer by the relocation management company (RMC) 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.

Recurring Carrying Costs 

Frequently reoccurring costs of holding a property in an employer’s or relocation management company’s (RMC) inventory. Examples include insurance, utilities, mortgage interest, condominium dues, taxes, and homeowner association dues.

Reimbursement Plan 

A type of relocation policy that reimburses transferees for costs incurred throughout the relocation process. Clients can have systems in place to track these costs or can do this through the submission of receipts.

Rejected Offer Transaction 

Allowing an offer to purchase to expire by an employee resulting in a cancellation fee being charged to the corporation.

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 WERC Summary Appraisal Report.

Relocation Consultant 

A designated point of contact for your relocating employees to reach out to throughout the relocation. This person can be internal or provided by your third party, but this person should be able to walk transferees through their policies, give advice, facilitate financial transactions between suppliers for relocation services, and mitigate any potential problems that arise throughout the relocation.

Relocation Incentive 

A payment made to relocating employees as an inducement for accepting an assignment that requires a transfer.

Relocation Management Company (RMC)

Companies, like Altair Global, that provide a wide array of relocation services for employers and relocating employees on a national and international basis. Services may include international and domestic policy development, financial management, home marketing, home finding, cross-cultural training, career counseling, language training, and much more.

Repatriation (Repat)

The return of the employee to the home country at the completion of the assignment. Companies may have relocation policies or provisions in the assignment policy which details an employee’s repatriation benefits.

Repayment Agreement 

An agreement that a transferee signs, which states they will be responsible for paying back their lump sum/benefits if they do not stay for a certain amount of time. The amount varies based on the time spent at the client.

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.

Replacement Value (RV)

The value of goods equal to the replacement cost at destination.

Replacement Value Protection (RVP)

Insurance provided by the mover which makes them liable for the replacement value of lost or damaged goods in the entire shipment.

Rest & Relaxation Trip/Rest & Recreation Trip (R&R)

A period of leave, usually in addition to the normal vacation entitlement, given to employees posted to certain locations which qualify as extreme hardship locations. Due to the extreme climate, security, availability of goods and services, cultural isolation, or other factors, the employee may be eligible for one or several trips to a culturally diverse, metropolitan area outside the host location or country. R&R is determined by an outside data provider, government, or other source.

Senior Services 

Relocation management services for seniors, including home marketing, home purchase, household good move coordination, settling-in services, setting up banking arrangements, initial grocery shopping, and initial decorating arrangements. Departure services include estate sale arrangements and post-move cleaning.

Short-term Assignment (STA)

A temporary assignment that lasts more than three months but less than a year.

Service Level Agreement (SLA)

A Service Level Agreement (SLA) defines the level of service through key performance indicators (KPIs) that can be expected from a service provider, including the types of services, performance standards, and responsibilities of the service provider.

Spousal Assistance 

Career assistance consulting and/or counseling to spouse/partner of relocating employees.

Storage 

Placement of household goods in either short- or long-term storage facilities. May be provided in conjunction with the transportation of household goods.

Storage in Transit

The service where household goods are temporarily stored by the moving company in route to the destination. This occurs when the goods cannot be delivered immediately to the final location.

Surface Shipment (SUR) 

A term used to refer to an international shipment transported by land, typically via truck or rail, rather than by air or sea. However, SUR can sometimes be used to reference either a surface or sea shipment.

Tariff (TRF)

A set of rates or charges that apply to the transportation of household goods. It outlines fees for various services such as shipping, handling, and other move-related costs.

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.

Tax Equalization (TEQ)

Tax equalization functions to compensate the employee for the additional foreign and home country tax cost resulting from the assignment. The company attempts to equalize the employee’s tax burden so it is neither greater nor less than the amount of tax they would have paid had they remained in the home country. A Tax Equalization Settlement is prepared annually and if the employee had paid more tax during the assignment, the company reimburses the employee for the excess amount. If the total taxes the employee paid are lower than they would have been at home, the company requests payment of the shortage.

Temporary Domestic Assignment/Domestic Temporary Assignment (TDA/DTA)

May be short- or long-term in duration and applies to both U.S. domestic and international assignments.

Temporary Living (Temporary Housing or Corporate Housing) (TL)

Living quarters provided for an employee on a nonpermanent basis. A company policy will typically provide the employee and their family members’ temporary living while they await the availability of their permanent residence or their household goods to arrive.

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.

Tenancy Management (TM)

The relocation management company (RMC) works on behalf of the employee to ensure accurate management of the tenancy period. At Altair Global, this includes facilitating rental payments, reimbursing utility payments, and acting as a single point of contact for all employees who occupy property rented by their employer while on assignment.

Terminal Handling Charge (THC)

The fee is for handling cargo at a port or terminal. It covers costs associated with loading, unloading, and moving goods within terminal.

Time in Inventory Incentive Fee 

Typically, a performance-based fee that applies to appraised value home 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.

Total Direct Cost 

Typically, a fee structure 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.

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.

Transferee/ Assignee (EE)

Any person working for a corporation who is relocating within the U.S. or going on an international assignment and is eligible to participate in the provisions of the corporation’s relocation policy.

Unaccompanied Air Baggage (UAB)

Pertains to shipments shipped by air transport.

Van Lines (VL)

A van line is typically the mover that provides household goods services, primarily for U.S. domestic shipments. Traditionally, van lines use large moving trucks to transport goods from the origin to the destination.

Visa

Grants the employee permission to enter a particular country for a specified length of time. While a few countries may not require a visa, the majority do. When a visa is required, each family member must have a valid visa for the entire intended length of stay. If the employee is accepting an international assignment, the client normally helps the employee and family members obtain their visas. The visa may or may not permit the expatriate to work. There may be a separate application for a work permit.

Warehouse Handling (WHH)

The fee for managing household goods within a warehouse. This includes activities such as receiving, storing, and preparing the goods for shipment or delivery, ensuring they are properly stored and ready for the next stage of the moving process.

Work Permit 

A visa may not automatically authorize the assignee to work in the host country. An application for a work or residence permit may be required. The client should be able to help the employee procure his/her work or residence permits. Some countries require this paperwork to be in process in order to secure a housing rental contract.

WERC

The workforce mobility association, whose mission is to provide leadership, advocacy, education, and networking to global workforce mobility professionals and stakeholders through specialized training, credentialing, meeting events, and information exchange.