CRPA CRPA Corporate Relocation Policy & ERC Guidelines

Question 1

What organization publishes the primary industry standards and guidelines that govern relocation appraisal practices in the United States?

Accepted Answer

The Employee Relocation Council / Worldwide ERC

Answer

The Appraisal Institute (AI)

Answer

The National Association of Realtors (NAR)

Answer

The Federal Housing Finance Agency (FHFA)

Question 2

Under Worldwide ERC guidelines, how many independent appraisals are typically required to establish an Appraised Value Offer (AVO) for a transferee's home?

Accepted Answer

Two independent appraisals, with a third ordered if the first two diverge significantly

Answer

One appraisal commissioned by the employer

Answer

Three appraisals averaged together regardless of spread

Answer

One appraisal plus a broker price opinion (BPO)

Question 3

What is the primary purpose of a corporate relocation policy?

Accepted Answer

To define the scope, benefits, and reimbursements provided to employees during a company-initiated move

Answer

To set the appraised value of the transferee's home

Answer

To establish the legal chain of title for relocation property transactions

Answer

To determine the tax liability of the relocation management company

Question 4

Which term describes the maximum dollar amount an employer will pay toward a transferee's relocation benefits?

Accepted Answer

Policy ceiling / policy cap

Answer

Equity cap

Answer

Reimbursement floor

Answer

Differential threshold

Question 5

In ERC relocation appraisal guidelines, what does 'anticipated marketing time' refer to?

Accepted Answer

The estimated time it should take to sell the property at its appraised value in the current market

Answer

The number of days the appraisal report is valid for program use

Answer

The period during which the transferee must accept or reject the AVO

Answer

The maximum time the RMC will hold the property before reducing the list price

Question 6

Which of the following is a key distinction between a relocation appraisal and a standard mortgage appraisal?

Accepted Answer

Relocation appraisals include a recommended list price and anticipated marketing time, which standard mortgage appraisals do not

Answer

Relocation appraisals use only the cost approach, while mortgage appraisals use the sales comparison approach

Answer

Mortgage appraisals are always higher than relocation appraisals for the same property

Answer

Relocation appraisals are performed without a physical inspection of the property