Corporate Relocation
Definition and meaning of Corporate Relocation in real estate.
Corporate relocation is a benefit program in which an employer pays for or reimburses the expenses associated with moving an employee to a new city or state for work.
In more detail
These packages are offered to recruit new talent or transfer existing staff, and they can vary significantly in scope depending on the employee's level. A relocation package typically covers physical moving costs, temporary housing, and travel expenses for house hunting. In many cases, employers partner with specialized relocation management companies to buy the employee's current home or assist in selling it quickly.
For home buyers and sellers, working with a client in a relocation program introduces unique paperwork and approval timelines since corporate entities are often involved in the transaction.
Key facts
| Category | Buying & Selling |
|---|---|
| Who pays | The employer |
| Common benefits | Moving costs, temporary housing, home selling assistance |
| Typical timing | Varies, but often completed within thirty to ninety days |
A software engineer accepts a transfer from Chicago to Denver, and their employer pays for the moving truck, provides three months of temporary housing, and covers the closing costs on their new home.
Frequently asked questions
Does a corporate relocation package cover the cost of selling my current house?
Yes, many comprehensive corporate packages include home-selling assistance, which may cover real estate agent commissions, closing costs, or even a guaranteed buyout option if the home does not sell.
Are corporate relocation benefits considered taxable income?
Yes, under current federal tax laws, most relocation expenses paid or reimbursed by an employer are considered taxable income for the employee, although policies and exceptions can vary.