3903 / IRS FORM 3903
This is the IRS tax form that allows the employee to account for any "Qualified Moving" expenses that are allowable deductions. You can not deduct moving expenses that have not been added to income. In most cases, you will find Form 3903 to equal zero. AECC does not report "Qualified Moving" expenses as income. Rather, they are reported in Box 12 of your W-2 with a "P" code. However, you may have paid a "Qualified Moving" expense out of pocket for which you were not reimbursed. Thus, you would claim a deduction for the expense on Form 3903.

ACCEPTANCE DATE
This is the date AECC receives the signed AECC Contract Of Sale from the transferee. AECC must have the AECC Contract of Sale signed by the transferee before AECC can sign the resale contract with the resale purchaser.

ACCEPTANCE PERIOD
When AECC makes a Guaranteed Purchase Offer to the transferee, the transferee will have a set number of days to accept the offer. Although the acceptance period varies from corporate client to corporate client, it is typically 60 days. During this time the transferee is marketing the home to try get an Amended Value sale for more than the Guaranteed Purchase Offer.

ACQUISITION COSTS
These are expenses paid by the corporate client related to AECC's acquisition of the property. These costs include the initial title exam, appraisals, inspections, if applicable, and $22.00 for overnight delivery service.

AECC CONTRACT OF SALE
This document is signed by AECC and the transferee. This contract states the terms under which AECC will purchase the property, including the sales price (either Guaranteed Purchase Offer or Buyer Value Option offer amount), the acceptance period, what personal property is included in the sale, how long the transferee has to vacate the property, and other conditions of the sale. This document must be signed by the transferee and received by AECC before AECC can resell the property to a resale purchaser.

AECC RESALE RIDER
This document must be signed by the resale purchaser. It is attached to and becomes part of the resale contract between AECC and the resale purchaser. This document protects AECC and the Corporate Client against law suits from the resale purchaser. It states that the home is being purchased in "as is" condition, that AECC has never occupied the property and has no other information about the condition of the property other than what has been stated on disclosure statements and property inspection. It also directs the resale purchaser to use AECC's designated title insurance company.

AECC RADON RIDER
This document must be signed by the resale purchaser if AECC has ordered a radon inspection on the home. The resale purchaser is acknowledging that the home has been tested for radon and that the radon level is at an acceptable level (under 4.0 pico curies).

AECC POWER OF ATTORNEY
This document must be signed and notarized by the transferee and the spouse. This document allows AECC to sign any documents necessary to close the sale on the transferee's home. It also directs that the proceeds of sale be made payable to AECC since AECC does not take title to the property.

AMENDED VALUE SALE
When AECC makes a Guaranteed Purchase Offer to the transferee, the transferee can continue to market the property during the term of their acceptance period. If the transferee receives an acceptable resale offer for more than the Guaranteed Offer, the transferee signs the AECC Contract of Sale at the "amended" Guaranteed Purchase Offer amount (i.e. the resale offer amount). AECC then signs the resale contract with the resale purchaser. AECC is listed as the seller of the property on the HUD-1 closing statement.

AMENDED VALUE SALE UNDER APPRAISALS
This is the same as an Amended Value Sale, except that the resale contract is for less than the Guaranteed Purchase Offer. The transferee is normally guaranteed the Guaranteed Purchase Offer amount even though the resale contract is less.

AMEND FROM ZERO
See Buyer Value Option.

APPRAISAL PROCESS
The marketing company will facilitate the ordering of appraisals on the transferee's home. These appraisals are done by designated appraisers who are familiar with relocation appraisals. The appraisers will determine a value that the home is worth based upon comparable home sales. Normally, two appraisals are ordered on a property. If the lower appraisal is within 95% of the higher appraisal, the appraisals are averaged and that amount becomes the Guaranteed Purchase Offer. If the appraisals are out of range, a third appraisal is ordered and the Guaranteed Purchase Offer becomes the average of the two closest appraisals.

ASSIGNED SALE
Under normal circumstances, AECC always signs the resale contract. With an assigned sale, the transferee actually signs the resale contract with the resale purchaser and "assigns" their interest in that contract to AECC. AECC then closes the sale on their behalf. The transferee is listed as the seller on the HUD-1 Settlement Statement. This process is not considered prudent since it raises IRS questions for reimbursed expenses.

ASSIGNMENT OF ESCROW
This form must be signed by the transferee if the transferee's lender has an escrow account. Since AECC gives credit to the transferee for the amount of money in this account, this document instructs the lender to send any funds remaining in the escrow account to AECC when the mortgage is paid off.

BROKER
This is the real estate agent who has listed the property for sale. The agent is responsible for presenting any offers received from a potential resale purchaser to the marketing assistance company. The broker will forward the resale contract to AECC for signature as the seller of the transferee's home. The broker may also be responsible for seeing that repairs are completed and paying for utilities if the home goes into AECC's inventory as a Regular or Amended Value Sale.

BROKER'S PRICE OPINION (BPO)
This is an appraisal done by a real broker or sales agent. It is typically not used in the calculation of a Guaranteed Purchase Offer. It is used by the marketing company as a guideline to establish a listing price for the transferee's property.

BUYER VALUE OPTION (BVO)
When the transferee does not receive a Guaranteed Purchase Offer based upon the average of appraisals, the Buyer Value Option is used. The transferee lists the property for sale. When an acceptable resale contract is received, the transferee signs a Contract Of Sale with AECC for the resale contract amount. AECC then signs the resale contract with the resale purchaser. AECC is then listed on HUD-1 Settlement Statement as the seller of the property. The transferee is typically not paid their equity until after the resale has closed.

CARRYING COSTS
These expenses are made up of two categories, non-recurring and recurring. Recurring carrying costs are mortgage interest, real estate taxes, property insurance, utilities, and maintenance. Non recurring carrying costs are repairs, improvements, one time assessments, etc. If the home is a regular or amended sale, the corporate client will pay for the expenses between the transferee's proration date and the date the property actually closed with resale purchaser.

CERTIFICATION FOR NO INFORMATION REPORTING
This is a form required to be completed by the transferee and spouse. It requests their social security numbers, new address, and four statements to be answered "yes" or "no". When answering these statements consider them as "true" or "false" with "true" equal to "yes" and "false" equal to "no". This form determines whether or not a 1099 needs to be issued.

CLOSING AGENT
This is the title company or attorney who represents AECC at the closing table with the resale purchaser. AECC forwards closing instructions, the deed in blank and other documents to the closing agent. The closing agent will fax the HUD-1 to AECC for approval. If everything is okay, AECC will instruct the closing agent to proceed with closing and sign any documents on behalf of AECC.

COMMISSION
This is a percentage of the resale purchase amount that is paid to the listing and selling brokers as compensation for obtaining a successful resale contract. The commission is paid only if the sale closes. The commission is typically six or seven percent and is paid at closing out of the proceeds of sale.

CONTRACT FOR DEED
See Land Contract

CORPORATE CLIENT
This is the corporation or company that has the agreement with AECC to provide Closing Services and/or Expense Management Services to their transferee.

DEED IN BLANK
This document is sent to the transferee and spouse for signature in front of a notary public. It conveys title to the property from the transferee to the resale purchaser. It is called a deed in blank because the resale purchaser's name is not on the deed. This is because the property may not yet be resold and at the time of the transferee's execution. The AECC Power Of Attorney allows AECC to insert a resale purchasers name at a later date.

DELAYED APPRAISAL OPTION
This program type requires the transferee to market the property for sale for a set period of time before a Guaranteed Purchase Offer is tendered. This program is a hybrid between a Buyer Value Option and Valuation and Marketing program.

DELIVERY OF OUTSIDE PURCHASER
See Buyer Value Option.

DIRECT COSTS
Direct costs are all expenses involved with AECC's acquiring and reselling the property. They include loss on sale, acquisition, carrying and selling costs.

DISCLOSURE STATEMENT
This is a document that the transferee is required to complete. It asks detailed questions about the condition of the property. A copy of the disclosure statement is given to any prospective purchaser of the property.

DISCOUNT POINTS / LOAN ORIGINATION FEE
A charge of prepaid interest by the lender typically based on a percentage of the loan. Points and Loan Origination Fees are usually deductible on Schedule A of the Federal Tax Return.

EMPLOYEE RELOCATION COUNCIL (E-R-C)
This council is made up corporations who transfer employees, service companies such as AECC, moving companies, consultants, etc. E-R-C is a source for information for all facets of the relocation industry. E-R-C lobbies in Washington D.C. to keep favorable tax rulings in place for corporate transferees.

EQUITY
This is the amount of funds the transferee receives upon the sale of their property. It is the purchase price less the amount owed on any mortgage(s) after prorations have been done for mortgage interest and real estate taxes.

EQUITY ADVANCE
See Prepayment Of Purchase Price.

EQUITY REQUEST FOR FUNDS
This form is sent to the corporate client requesting equity funds that are owed by AECC to the transferee. Upon AECC's receipt of the funds from the corporate client, AECC will disburse these funds to the transferee.

EQUITY CLOSING STATEMENT
This statement details all credits and charges to the transferee regarding the calculation of their equity.

ESCROW ACCOUNT
This is a special account held by the transferee's lender. Each month, the escrow portion of the mortgage payment is deposited in this account. When real estate taxes or insurance premiums become due, they are paid out of this account by the lender. Any funds left in this account are usually refunded within thirty days after the mortgage is paid-off. If there is no Escrow Account, the transferee is responsible for paying real estate taxes and insurance payments.

ESCROW PAYMENT OF MORTGAGE
This is a portion of the mortgage payment that is applied to the Escrow Account after each monthly payment. This amount can change on an annual basis if real estate taxes increase or decrease.

FHA MORTGAGE (FEDERAL HOUSING AUTHORITY)
This is a mortgage program developed by the federal government. It allows purchasers to obtain a mortgage with a minimal down payment. FHA mortgage insurance is required because of the low down payment to the risk. When the mortgage is paid off, funds must be received by the lender by the first of the month or another month's interest is added to the payoff.

GENERAL HOME INSPECTION
When AECC makes a Guaranteed Purchase Offer to the transferee, a general home inspection is typically ordered. A qualified and trained inspector checks the condition of the property. This includes the heating and cooling systems, plumbing, appliances, roof, property grading, etc. The general home inspector may also recommend further inspections if certain problems fall outside of his/her expertise. The transferee is then required to correct any problems that are cited by the inspection. Copies of all inspections must given to any prospective resale purchaser as part of disclosure law.

GROSS-UP (GUP)
Gross-up is a benefit many employers provide to assist the employee with the tax liability that will be associated with reimbursements made for relocation expenses. Rather than issue the gross-up dollars to the employee, most employers elect to deposit the funds for the employee with the different tax authorities. It is important to remember that gross-up does not guarantee an employee will not incur extra tax liability due to their reimbursements. Much will depend on the specific company gross-up policy and personal tax filing issues. Since gross-up is a benefit, it is also considered taxable income.

GUARANTEED PURCHASE OFFER (GPO)
This is the amount that AECC offers to purchase the transferee's home based upon the average of the appraisals ordered through the marketing company.

HOME EQUITY LOAN
This is considered a second mortgage. It is a lien against the property. The transferee can borrow money from this account up to the maximum line of credit. There is usually a minimum payment, but the loan can be paid at any time. Usually, AECC pays off this loan upon the calculation of the transferee's equity.

HOMEOWNER ASSOCIATION
These associations are commonplace when the property is a condominium or a townhome. They also can be part of subdivisions. Payments are made to the association so that common areas, or areas not owned by the transferee, can be maintained. Payment also covers replacement or repair of roofs and other common elements.

HOMEOWNER ASSOCIATION INFORMATION REQUEST
This form needs to be signed by the transferee and is forwarded to the association. AECC needs to know the amount of the payments, and if they are paid monthly, quarterly or annually. Association payments are prorated on the Equity Closing Statement.

HOMEOWNER INSURANCE
All lenders require the property owner maintain adequate property insurance on the property. If the transferee accepts a Guaranteed Purchase Offer from AECC, the transferee is instructed to cancel their insurance as of their Proration Date. AECC will insure the property through AECC's vender, Relinco, from the transferee's proration date until the resale closing date.

HUD-1 / RESPA STATEMENT
This is the standard Housing and Urban Development statement of closing. It lists detailed closing costs and adjustments. The document may also be referred to as a RESPA statement.

HUD-1 CLOSING STATEMENT
This is the closing statement between AECC and the resale purchaser. It must be faxed to AECC for approval before the resale closing can proceed. It is executed by the resale purchaser and AECC's designated closing agent.

IN-HOUSE PROGRAM
This is a corporate client who does not use a marketing company. They have employees on staff who assist the transferee in the marketing of the property. They also order appraisals and issue the Guaranteed Purchase Offer directly to the transferee. In-House programs use AECC to calculate transferee equity, obtain documents necessary to transfer title, and facilitate the resale closing with the resale purchaser. AECC is not named as the buyer or seller on any documents.

INITIAL DEPOSIT INVOICE
When AECC makes a Guaranteed Purchase Offer to the transferee or a property is sold under the Buyer Value Option, AECC will send an invoice to the corporate client. This amount is usually 9% of the offer amount, although it can vary from corporate client to corporate client. AECC uses this advance of funds to pay all property related expenses. After the property is resold and closed, AECC will send the corporate client a final invoice. All direct costs and service company fees will be listed on the property sold report. The initial deposit invoice amount will be credited against the items on the property sold report.

INSPECTIONS
When AECC makes a Guaranteed Purchase Offer to the transferee, inspections will be ordered on the property by either AECC or the marketing assistance company. Typically, a general home, radon and wood destroying insect's inspections are ordered.

INVENTORY PROPERTY
When AECC makes a Guaranteed Purchase Offer to the transferee and the transferee accepts the offer without an Amended Value Sale, AECC then becomes the owner of the property. This is also called a regular sale. Since the property has not been resold, it is considered to be in AECC's "inventory". AECC is responsible for paying all Carrying Costs on behalf of the Corporate Client.

INTEREST IN ARREARS
When a transferee has a mortgage, interest is charged on the principal balance by the lender. A portion of the monthly mortgage payment goes towards interest. When the mortgage payment is made, the interest portion of the payment pays the interest for the prior month. This is called "interest in arrears".

INTEREST PAYMENT OF MORTGAGE
This is the portion of the monthly mortgage payment that is applied to interest owed on the unpaid principal balance.

LAND CONTRACT
A contract given to a purchaser of real estate who pays a small portion of the purchase price when the contract is signed, but agrees to pay additional sums, usually monthly until the purchase price in the contract is paid. The seller gives a deed to the buyer when all monies owed to the seller by the buyer have been paid.

LEAD-PAINT DISCLOSURE STATEMENT
If a property was built prior to 1978, there is a chance that lead paint may be present on the property. It has been determined that lead paint can be hazardous to the health of young children. Therefore, this form asks the transferee if they have any knowledge of the presence of lead paint. This form must given to any prospective purchaser of the property.

LENDER
This is the institution that has made a loan or given a mortgage to the transferee. There can be more than one mortgage on a property, including a home equity loan.

LISTING AGREEMENT
This is a contract between AECC or the transferee and the broker. The listing agreement states the asking price for the property and the amount of commission to be paid the broker upon the closing of the property.

LISTING WAIVER
This document must be signed by the transferee and the transferee's listing broker. It states that if the transferee signs a contract of sale with AECC, the listing agreement between the transferee and the broker becomes null and void and there is no obligation to pay a commission. AECC, as owner of the property, will then enter into a listing agreement with the broker agreeing to pay the commission.

LOAN ORIGINATION FEE / DISCOUNT POINTS
A charge of prepaid interest by the lender typically based on a percentage of the loan. Points and Loan Origination Fees are typically deductible on Schedule A of the Federal Tax Return.

LOSS ON SALE
This is a direct cost to the corporate client. It is the difference between the Guaranteed Purchase Offer amount and the resale amount. In the event that the property is sold for more than the Guaranteed Purchase Offer amount, the gain on sale will be credited to the corporate client.

MAINTENANCE
Maintenance of the property is considered a recurring carrying cost. It includes all monthly utilities, lawn care, snow removal, etc.

MARKETING COMPANY
This is a relocation service company who partners with AECC. It is their responsibility to assist the transferee with the selection of a broker, list price, and the negotiation of the sale. The marketing company also facilitates the ordering of appraisals and property inspections, if required, either directly or through an independent appraisal management company.

MARKETING ONLY
This occurs when the corporate client does not provide a Guaranteed Purchase Offer. The transferee cannot sell the property to AECC until an acceptable resale offer is received. See Buyer Value Option.

MONTHLY BILL REIMBURSEMENT FORM
This form is sent to the listing broker for a Regular or Amended Value Sale. The corporate client will pay for utilities, maintenance and repairs from the transferee's acceptance date until the resale closing date. The broker is instructed to put the utilities in the broker's company's name. The broker pays these expenses and AECC reimburses the broker when this form is submitted to AECC along with copies of all bills.

MORTGAGE
This is a legal document pledging the property for the performance of a repayment of a loan under certain terms and conditions.

MORTGAGE INFORMATION LETTER
This form requests information such as the outstanding principal balance, interest rate, payment amount, and escrow balance and is used when calculating the transferee's equity. It is sent to the transferee for signature. The transferee then forwards this form to the lender. The lender completes the form and forwards it to AECC.

NEGATIVE EQUITY
This is the term used when charges are greater than the credits on the Equity Closing Statement. In effect, the transferee must pay AECC the Negative Equity amount in order for AECC to purchase the property.

NEGATIVE ESCROW ACCOUNT
This is the term used when the transferee's lender has paid out more dollars for real estate taxes or insurance premiums than exist in the account. This amount is added to the mortgage payoff amount. Alternatively, the lender may increase the escrow portion of the monthly mortgage payment to cover this deficit.

NON-RESIDENT AFFIDAVIT
This is a form required to be filled out by the transferee and spouse. It requests their social security numbers and that they are not resident aliens. AECC will issue a Form 1099 to the transferee and the government. The government uses the 1099 to track capital gains on the purchase and resale of properties.

NOTARIZE
Certain documents must be signed and notarized by a notary public. The notary is stating that person who signed the document is in fact the person named in the document. The notary must affix their seal and the date that their notary expires.

OUTSIDE PURCHASER
See Resale Purchaser.

PAY-OFF STATEMENT
This statement is issued by a lender when the loan is going to be paid off. It is normally done at the resale closing. The statement details the amount of the pay-off along with a per diem interest amount if the pay-off is not received by the date stated.

PERSONAL PROPERTY
These are items that are not affixed to the real estate that may be sold along with property. Examples are drapes, unattached microwave oven, washer, dryer, etc. It is important that these items be listed on the AECC Contract Of Sale as well as the Vacancy Inspection Report.

POSSESSION PERIOD
When AECC makes a Guaranteed Purchase Offer to the transferee and the transferee accepts the AECC offer, corporate client policy dictates how long the transferee may remain in the property after the acceptance date. A typical possession period is 60 days.

PREPAYMENT OF PURCHASE PRICE (I.E. Equity ADVANCE)
Prior to acceptance of the Guaranteed Purchase Offer, the transferee may request funds for use as earnest money (i.e. a down payment paid by buyer) or for other reasons with regard to the purchase of a property in the new location. This form must be completed and sent to AECC with a copy of the contract to purchase a new property. AECC should have all disclosure statements, completed inspection reports, as well as a clear title report on the prior home before any funds are released to the transferee.

PREPAYMENT PENALTY
There are clauses in some mortgages stating if the loan is paid off early, the lender can charge a prepayment penalty. These penalties may or may not be paid for by the corporate client.

PRINCIPAL BALANCE
This is the amount of mortgage that remains to be paid off. This balance is not a pay-off amount since you have unpaid interest through the date the pay-off check is received by the lender.

PRINCIPAL PAYMENT OF MORTGAGE
This is the amount of the monthly mortgage payment that reduces the unpaid principal balance. The principal portion of the mortgage payment increases while the interest payment decreases after each mortgage payment.

PRIVATE MORTGAGE INSURANCE (PMI)
PMI loans with minimal down payments (less than 20%) require private mortgage insurance by the lender. The insurance covers the lender's risk in making the loan and covers the amount usually equal to the low down payment and the normal down payment and twenty percent. The PMI is paid by the transferee and is part of the monthly mortgage payment and is applied to the escrow account. The lender pays the insurance annually.

PROCEEDS OF SALE
This term refers to the amount of money due and payable to AECC after the resale closing with the resale purchaser. It is the last line on the HUD-1 settlement statement. It reflects the resale price less the mortgage pay-off(s), prorations, broker commission, title expenses and/or attorney fees, recording fees, transfer taxes, etc.

PROPERTY SOLD REPORT
This report accompanies AECC's final invoice to the corporate client. It details all property related expenses by category. The expenses are summarized by loss on sale, acquisition costs, carrying costs, selling costs, and service company fees.

PRORATION DATE
This is the date used in the calculation of the transferee's Equity. In the Guaranteed Purchase Offer option, it is the date the transferee accepts AECC's offer, vacates the property, or sends the negative equity amount to AECC, whichever is later. Items that are prorated are real estate taxes, mortgage interest, and association dues. In the Buyer Value Option the proration is the same as the resale closing date with the resale purchaser.

RTR (RELOCATION TAX REPORT)
An informative report provided by AECC at year-end summarizing reimbursed relocation expenses. Prior to the 1998 tax year, this was formally known as Form 4782. Form 4782 was a document the IRS required employers provide to employees who received reimbursed relocation expenses. Although no longer required, AECC believes this is a very useful tool that provides the relocated employee with information they may need to complete IRS Form 3903 and file their personal tax return. Thus, AECC continues to provide the information in the form of a RTR.

RADON INSPECTION
When AECC makes a guaranteed purchase offer to the transferee, a radon inspection is typically ordered. Radon is an odorless, colorless gas that enters a property through the foundation cracks, sump pump hole etc. and can be hazardous to a family's health if they are exposed over an extended period of time. All doors and windows to the property must be sealed at least 24 to 48 hours prior to the test. If the radon level exceeds 4.0 pico curies per liter, it is an unacceptable amount according to the Environmental Protection Agency. The transferee is then required to "mitigate" or decrease the level by sealing cracks or installing a system to circulate air to bring the amount of radon to an acceptable level.

REFERRAL FEE
When a marketing company refers a transferee to a broker and that broker lists the transferee's home for sale, the broker agrees to pay a portion of their commission, usually, 25% to 30%, to the marketing company for providing the broker with an opportunity to earn a commission. The brokers agree to pay the referral fee because they look to the marketing company as a continued source of business. Referral fees are also paid by brokers on inventory properties or when brokers assist the transferee in purchasing a property in the new location. Marketing companies use these referral fees as a source of income and may share a portion of the referral fees with the corporate client.

REGULAR SALE
This term refers to an Inventory Property. If AECC makes a Guaranteed Purchase Offer to the transferee and the transferee is unsuccessful in obtaining a resale offer for more than the appraised value, and the transferee accepts AECC's offer, the transaction is considered a "Regular Sale".

REIMBURSED EXPENSES
When a corporate client reimburses a transferee for expenses involved with the sale of their property, the IRS considers this reimbursement taxable income to the transferee. When the transferee sells their property to AECC, it is on a cash basis and there are no closing costs reimbursed to the transferee in connection with the sale. Therefore, there is no tax liability in connection with the sale. AECC, as owner of the property, pays all expenses associated with the sale of the property and bills these expenses to the corporate client.

RESALE CONTRACT
This is the document AECC signs with the Resale Purchaser agreeing to sell the property that AECC has acquired from the transferee.

RESALE PURCHASER
This is the person or persons who buy the transferee's property from AECC.

SECOND MORTGAGE
This is a mortgage that is secondary to a first mortgage on the property. A home equity loan can also be considered as a second mortgage. AECC normally pays off all second mortgages on inventory homes since the interest rate charged by the lender is a higher rate.

SELLER'S AFFIDAVIT
This document must be signed by the transferee in the presence of a notary public. In the document the transferee attests that they have not done anything to affect the title to property, that they are not the subject of divorce or bankruptcy proceedings, etc.

SELLING COSTS
These costs refer to costs associated with the sale of the property to the resale purchaser. They include broker commission, transfer taxes, recording fees, title insurance, or any other miscellaneous costs.

STRUCTURAL INSPECTION
If the general home inspection reveals a concern with the structure of the property, the general home inspector may recommend that a further evaluation of the condition be completed by a structural engineer.

SURVEY
A survey is basically a map of the property that outlines the size of the lot and where the structures are located on the lot.

TERMITE INSPECTION
See Wood Destroying Insect Inspection.

TITLE
In order for AECC to acquire and resell a transferee's property, the transferee must have clear and marketable title to the property. Usually, a transferee takes title to the property with their full legal names. AECC orders a preliminary title search to make sure the title is vested in the transferee's name. Title is transferred from seller to buyer by a deed.

TITLE COMPANY
The title company is used by Safetrans to provide a preliminary search for AECC in areas where attorneys are not used. The title company will also act as AECC's closing agent when the property has been sold to the resale purchaser. After closing, the title company will provide title insurance to the buyer and buyer's lender.

TITLE INSURANCE
This insurance protects against financial loss resulting from claims arising out of defects in the title to real estate, which are existent but undisclosed at the time the policy is issued by the title company.

TRANSFER DECLARATION
This is a document used by some states when a fee is charged when a deed is recorded. The document states the amount of transfer taxes to be charged and is usually signed by the seller and the buyer.

TRANSFER TAXES
This is an amount charged by states, counties or municipalities based on the selling amount of the property. It is normally based upon the sales price of the property.

TRANSFEREE
This is the individual who is being transferred by AECC's corporate client.

TRANSFEREE EVALUATION
This form is sent to the transferee with the Transferee Equity Package. It asks questions about efficiency and the professionalism of AECC's service.

UTILITIES
These are carrying costs paid by AECC and charged to corporate the client from the transferee's proration date to the date of closing with the resale purchaser. These costs include electricity, gas, etc.

VA LOAN (VETERANS ADMINISTRATION)
This is a mortgage program developed by the federal government for individuals who have served in the U.S. armed forces. It allows veterans to obtain a mortgage with a minimal down payment. Mortgage insurance is required because of the low down payment to the risk.

VACANCY INSPECTION FORM
This is a form sent by AECC to the real estate broker. When a transferee vacates a property, the broker is required to complete this form to advise AECC of the condition of the property.

VALUATION & MARKETING
This program type provides the transferee with a Guaranteed Purchase Offer. The transferee lists the property for sale and receives an offer from AECC based upon the average of appraisals. The transferee normally has 60 days to accept the Guaranteed Purchase Offer. Property inspections are normally ordered under this program type. If the home is sold to a resale purchaser for more than the Guaranteed Purchase Offer, it would be normally handled as an Amended Value Sale.

WELL AND SEPTIC INSPECTION
If the home has a well and septic system (i.e. no city water and sewer), these items must be inspected to see if they are working properly. These inspections are normally ordered by AECC through RAL or the marketing assistance company through their inspection vender.

WIRE TRANSFER
In lieu of sending an equity check to the transferee or negative proceeds check to the title company, AECC's bank can transfer funds electronically. These funds are immediately available and are as good as cash.

WOOD DESTROYING INSECT INSPECTION
This inspection is done under a Valuation & Marketing program. It is required in most states when a property is resold. It checks for termites, carpenter ants, etc. that could damage the structural integrity of the property.