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The many expenses associated with the corporate relocation means the relocation process can become expensive.
One of the major associated expenses is the reimbursement to employees for commission and closing costs associated with the sale of their home.
When these routine commission & closing costs involved in selling a home are added to employee income,
the associated grossup the employer pays to compensate for payroll-tax liabilities is considerable. Moreover, coordinating the sale is rarely accomplished smoothly.
The resulting stress and distraction to transferees can be considerable. It is common for companies to experience ‘soft’ losses during the relocation process due to lost time and focus for the employee and their employer. Because of this,
re-homing transferees represents the largest share of direct and indirect relocation costs to the employer.
AECC’s Closing Services helps our partners significantly reduce or eliminate the taxability of those reimbursable
closing expenses for their clients. As a result, our partners help their clients save thousands of dollars in tax gross-up costs each year.
AECC is privately held, debt-free, and financially stable. Our software and related technology systems are designed and dedicated specifically to meet the needs of the relocation process. Our highly experienced and professional team has produced solutions for every home sale and closing situation imaginable.
Furthermore, AECC is independent from affiliations with real estate, appraisal, inspection, and mortgage companies. This freedom allows us to offer completely objective services and recommendations, and to focus completely on our partners’ best interests.
That’s why, for over 20 years, AECC has been able to help our partners expand their services and deliver third-party closing services effectively and efficiently to their clients.
AECC lets your company provide valuable benefits to your clients:
For your clients, AECC’s Closing Services help eliminate the single biggest headache of corporate relocation for both
the employer and their transferees. Additionally, AECC delivers an objective administration of your client’s corporate relocation program.
AECC’s suite of Closing Services programs include fully outsourced models as well as customized solutions. AECC provides discreet support for a portion of the home sale closing process, delivering this service in conjunction with
our service partners. Our program solutions include buyer-value option, guaranteed buy-outs, and various hybrids of these programs.
Our service partner typically serves as the lead on the client account, and provides the expertise in departure and destination services for the client. AECC focuses on the home sale transaction. This relieves our partners of many of
the burdens associated with home sale and closing transactions and allows them to focus their efforts on working with the transferee and client to effectively market the home to produce a buyer at the best possible price.
In a typical home sale transaction, AECC will purchase the transferee’s home in the old location. Then, in a second, separate, and independent sale, AECC transfers ownership of the home to an outside purchaser. If no outside buyer
is immediately available, and if allowed by the client’s relocation policy, AECC can hold the home in inventory. In such cases, AECC will manage the property until it is sold.
Additionally, AECC’s services eliminate the need for the transferee to attend the closing. This means the transferee can proceed to their new job without worrying about the sale of their old home. The transferee spends less time dealing with relocation issues, and more time settling in and focusing on their new job.
Even better, AECC’s Closing Services can save the employer thousands of dollars. When AECC purchases the home from the transferee, the transferee avoids many of the tax implications related to the direct reimbursement of home sale closing costs. Those costs are subsequently incurred by AECC when the home is re-sold to an outside buyer. Although the employer reimburses AECC at that time, the structure of the sale is such that most of the closing costs are not reportable as income to the employee resulting in a considerable grossup savings to the employer.
Program Types Include:
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