3.1       Determining Your Eligibility

3.2       Reimbursable Expenses

3.3       Non-reimbursable Expenses

3.4       Determining How to Sell Your House

    3.4.1      Home Equity Advance Payment

3.5       Home Marketing Incentive Payment Eligibility Requirements

3.1    Determining Your Eligibility

You are eligible for reimbursement of certain expenses associated with the sale of your house if the dwelling was your actual residence at the time you were officially notified of your transfer (or you acquired an interest in the property prior to official notification), and one of the following four situations applies to the title to the residence^[1] (or the interest in a cooperatively owned dwelling on a pro rata basis):

1. The title is solely in your name.

2. The title is jointly in your name with one or more members of your immediate family.

3. The title is solely in the name of one or more members of your immediate family.

4. The title is with an individual accommodation party (an individual who signs your financing agreement, such as a mortgage, to lend his/her name and credit to the arrangement).

To be considered for reimbursement, all land and buildings must be reasonably related to the residence site. The Service will not reimburse you for expenses related to the sale of non-residential property.

The maximum amount you will be reimbursed for expenses related to the sale of your house is 10% of the actual selling price of the home. 

3.2    Reimbursable Expenses

The following list includes expenses that are reimbursable in connection with selling your house:

• Broker's fee or real estate commission that you pay on the sale of your residence, not to exceed rates that are generally charged in the locality of your old official station. The maximum rate is currently 7% of the sale price of your house.

• Cost of advertising in the newspaper and/or other media when you sell your house without the services of a real estate agent.

• Appraisal fee for establishing a suggested sales price for your residence.

• Legal (attorney) and related fees for (1) searching for the title, preparing abstracts, and providing a title opinion, or (2) a title insurance policy where customarily furnished by the seller; costs of preparing conveyances, other instruments and contracts; related notary fees; cost of making surveys, preparing drawings or plats; recording fees and recording taxes (or other charges incidental to recordation); document preparation and flood certification.

• Owner's title insurance policy (provided it is a prerequisite to financing or the transfer of property, and the cost of other insurance that is a prerequisite to financing or to transfer of property).

• Penalty charge for prepayment of the mortgage on your current residence when provided for on the mortgage instrument (not to exceed 3 months' interest).

• Escrow agent’s fee or settlement fee for closing a real estate transaction.

• State revenue stamps.

• Transfer or mortgage taxes.

• Power of Attorney (trustee fee).

• Release fee.

• Title examination.

• Title insurance binder (in lieu of title search).

• Radon and pest inspection (if required by law or the lender).

3.3    Non-reimbursable Expenses

The Service will not reimburse you for the following expenses[2]:

• Cost of litigation.

• Funding fees (e.g., Department of Veterans Affairs (VA) funding fee).

• Mortgage insurance premium (MIP).

• Maintenance and operating costs.

• Property taxes.

• Mortgage discounts, points, interest on loans, and losses in connection with the sale of your residence due to price or market conditions.

• Home warranty.

• Homeowner/condo fee.

No fees, costs, charges, or expenses such as an underwriting fee, processing fee, or tax service fee are reimbursable. Any expense determined to be part of a finance charge under the Truth in Lending Act[3] is not reimbursable.

3.4    Determining How to Sell Your House

You may choose to sell your house through your own efforts, using a real estate agent or using the Service's contracted relocation services vendor. Electing to enroll in the relocation services program offers you the following five distinct advantages:

1. The relocation company will make you an offer on your house, based on the appraised value, which guarantees the sale of your home.

2. The relocation company offers a number of complimentary services to you at your new official station (e.g., assistance locating temporary quarters or rental housing).

3. You may request an equity advance to assist you with the purchase of a house at your new official station.

4. You are eligible to receive a home marketing incentive payment.

5. The payment made by the Service to the relocation services vendor on your behalf is not considered taxable income.

Regardless of how you decide to sell your house, the settlement dates for the transactions for which you want to be reimbursed must take place within 2 years after the date on which you report for duty at your new official station^[1].

Within 10 business days of signing your Employee Agreement Form, you must decide whether you wish to sell your house using the Service's contracted relocation services vendor or whether you wish to sell your house through your own efforts.

If you decide to use the Service's contracted relocation services vendor to assist you in the sale of your house, you must complete the following four steps:

1. Indicate your desire to use 'Relocation Services' on the Employee Relocation Allowance Data Sheet (Form 3-139).

2. Complete the Request for Contractor Provided Relocation Services form and indicate your desire to use relocation services.

3. Select the date on which to initiate relocation services.

Note: Under certain circumstances, you may delay the initiation of relocation services for a period of up to nine months. However, all residence sale and purchase transactions must be completed within 2 years of the date on which you report to your new official station, in order for you to be eligible for reimbursement. Circumstances that may warrant a delay include, but are not limited to the following:

• Your spouse and child(ren) need to stay at your old official station in order for the child(ren) to complete the academic year.

• Your spouse needs to stay at your old official station in order to prepare your property for sale (e.g., repairs, maintenance).

• Your spouse needs to stay at your old official station due to employment obligations.

• You are called to active military service or sent on extended temporary duty.

4. List your house with a real estate agent prior to the initiation date of the relocation services. The following exclusion clause must be included in your contract/agreement with the real estate agent:

"The seller(s) hereby reserve(s) the right (1) to sell the Property directly to [insert relocation vendor name] at any time and, in such event, to cancel this listing agreement with no obligation for commission or continuation of listing hereafter and (2) to turn over an acceptable written offer hereunder to [insert relocation vendor name] for closing and payment of commission which shall be deemed earned and payable only upon closing of title."

If you decide not to sell your house using the Service's contracted relocation company, you must complete the Request for Contractor Provided Relocation Services form and indicate you do not wish to use these services. A denial of the services is final and may not be changed at a later date.

Once you enroll in the relocation services program, a relocation services representative will contact you and counsel you on the appraisal and offer process. The representative will also provide you with any additional forms you need to complete as part of your move.

Generally, it takes approximately 35 calendar days for the relocation services vendor to make you an offer. You will have 60 calendar days to either accept or decline the offer. If you receive an offer from an outside party during this period, you must turn the new offer over to the relocation services vendor. The company will review the new offer to determine whether it is acceptable. If you accept the relocation service's offer or the relocation company accepts an offer from a third party, no additional expenses may be reimbursed in association with the sale of your property. Once you accept the relocation services vendor's offer, 95% of your home's equity will be paid within 5 business days. The relocation services vendor will pay the remaining 5% after you vacate the residence.

You have the right to cancel your relocation services request or reject the contractor's offer any time prior to acceptance of an offer. By doing so, you are canceling your participation in the relocation services program. The contractor will be paid by the Service for all inspection fees, title search costs, and appraisal costs incurred up to the point of cancellation. You are entitled to copies of any document(s) prepared by the relocation services vendor and paid for by the Service that would be of use to you in selling your house. If you cancel your participation in the relocation services program and sell your house through your own efforts, you will not be reimbursed for any services previously provided and paid for by the Service under your original contract with the relocation company.

The following types of homes are not eligible for enrollment in the relocation services program:

• Mobile/manufactured homes (e.g., trailer homes, houseboats; whether or not affixed to real property owned by the employee), unless the mobile home meets Federal, State, and local housing codes.

• Cooperative units.

• Homes that do not meet Federal, State or local housing codes.

• Homes that cannot be insured.

• Homes that cannot be financed (Federal or conventional).

• Home on which construction has not been completed.

• Homes without foundations.

• Employee-owned rental properties.

• Homes located outside of the United States and territories.

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3.4.1    Home Equity Advance Payment

Once the relocation services company has made an offer on your house, or you have received an offer from a third party and turned it over the relocation service company, you may request an advance equity payment from the relocation services vendor. You may request to be advanced up to 75% of the appraised value offer made by the relocation services vendor to assist you in the purchase of a house at your new official station. If you are interested in receiving a home equity advance, you should contact the relocation services vendor.

3.5    Home Marketing Incentive Payment Eligibility Requirements

If you enrolled in the relocation services program, you are eligible for a home marketing incentive payment if all of the following circumstances apply to the sale of your house:

• You listed your house with a realtor and included the exclusive clause, referenced in section 3.4 - Determining How to Sell Your House in your listing agreement prior to initiation of the relocation company's services.

• You decided whether to enroll in the relocation services program by completing the Request for Contractor Provided Relocation Services form within 10 business days of signing your Employee Agreement Form.

• You find a buyer for your house, who the Service's contracted relocation services vendor determines is qualified and has made a bona-fide offer.

• You transfer your house to the Service's contracted relocation services vendor.

• The Service pays a reduced fee (i.e., amended value fee or buyer value offer) to the relocation services contractor for the sale of your house.

• You stay in temporary quarters for a period of no more than 60 calendar days (reference section 8.0 - Staying in Temporary Quarters).

The incentive payment is the lesser of the following two amounts:

• 3% of the price the Service's contracted relocation services vendor paid you for your residence.

• The government savings resulting from the amended value sale.

The maximum incentive payment you may receive is $10,000.

Once the sale of your residence to the new buyer is complete, your Regional PCS Coordinator determines the amount of your incentive award and works with NBC to enter the award into the payroll system.

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