Certified Relocation Professional (CRP) Practice Exam

What condition must a transferee meet to have companies reimburse purchase closing costs?

1. Utilizes the company's home purchase plan

2. Utilizes a pre-purchase appraisal

3. Is at an executive level

4. Is a previous homeowner

The correct answer is: Is a previous homeowner

To receive reimbursement for purchase closing costs, the transferee typically must be a previous homeowner. This condition often arises from the requirements set by many relocation policies, which may stipulate that only those who have previously owned a home can qualify for reimbursement of these costs. The reasoning behind this requirement is that past homeownership often indicates a certain level of familiarity with the home buying process, making it more likely that the transferee understands the financial implications and responsibilities involved. Additionally, prior homeowners may have legitimate incurred costs associated with their previous sales that can influence the reimbursement policies of the company. For the other options, utilizing the company's home purchase plan, a pre-purchase appraisal, or being an executive does not universally guarantee reimbursement for closing costs across all relocation policies and practices. Each company may have different approaches, but the condition related to previous homeownership is commonly recognized in many organizational policies regarding relocation and reimbursement practices.