Certified Relocation Professional (CRP) Practice Exam

Which of the following represents the major components of the ERC Home Sale program costs?

1. Brokers commissions and transaction fees

2. Home selling costs and administrative expenses

3. Acquisition carrying costs and disposition selling costs

4. Closing costs and relocation assistance

The correct answer is: Acquisition carrying costs and disposition selling costs

The major components of the ERC Home Sale program costs are best represented by acquisition carrying costs and disposition selling costs. This distinction is important in understanding how costs are categorized within the home sale process. Acquisition carrying costs refer to the expenses incurred while holding the property before it is sold to the new owner. This may include items such as property taxes, mortgage interest, and insurance during the time the property is on the market. Disposition selling costs encompass the expenses associated with selling the property, including agent commissions and any necessary repairs or improvements to make the home more marketable. This dual categorization provides a comprehensive overview of the financial implications associated with relocating employees through the ERC program, emphasizing both the holding costs before the sale and the selling costs incurred during the transaction. Understanding these components is crucial for organizations to accurately budget and manage their relocation expenses effectively.