Abstract of Title: A historical summary of the public records relating to the title to a particular piece of land. An attorney or title insurance company reviews an abstract of title to determine whether there are any title defects which must be cleared before a buyer can purchase clear, marketable and insurable title.
Acceleration Clause: Clause used in an installment note and mortgage (or deed of trust), which gives the lender the right to demand payment in full upon the happening of a certain event, such as failure to pay an installment by a certain date, change of ownership without the lender’s consent, destruction of property, or other event which endangers the security of the loan.
Acceptance: Voluntarily agreeing to the price and terms of an offer. Offer and acceptance creates a contract.
Accrual Projection: A detailed projected expenditure on a calendar basis against budgeted costs used to forecast monthly/quarterly/annual budget requirements.
Accrued Interest: Interest on a note, bond, etc. which has been earned but not yet paid. Since interest is usually paid in arrears, accrued interest does not necessarily indicate a delinquency in payment.
Acquisition and Carrying Costs: Those fees and charges associated with establishing an appraised value, taking a home into inventory (except for formal closing costs in which title passes from the employee to the purchaser), and keeping a home in inventory until resale.
Acre: A measure, usually of land containing 43,560 square feet in any shape
Addendum/Addenda: Something added. A list or other material added to a document, letter, contractual agreement, escrow instructions, etc.
Adjustable-Rate Mortgage (ARM): A loan with an interest rate that periodically changes in keeping with a current index, similar to one-year treasury bills. Typically, they can’t jump more than two percentage points per year or six points above the starting rate.
Affidavit: A written statement made under oath before a notary public or other judicial officer.
Agent (Real Estate): A salesperson responsible for listing, selling, and closing the sale of real estate. Real estate agents are generally certified or licensed and work for a real estate broker.
Agent (Moving): The local moving company representing a national van line. May serve as booking, origin, destination and/ or hauling agent.
Allowances: In real estate sale, a specific amount of money that has been negotiated in the contract of sale to he applied as a concession to the buyer. Typically for repairs, improvements, closing costs, etc.
Allowances/Incentives: Payments made, separate from base salary, to recognize the demands of moving the employee and family from the home to host location. Allowances/Incentives are intended to cover either specific items such as separation from family, difficult living conditions or hardships or to cover items not otherwise covered within the policy such as miscellaneous expenses.
Amended Value Sale: A tax advantageous process whereby the associate sells his/her former home to a 3rd party (MSI and/or their Service Partner) who, in turn, sells it to the new purchaser.
Amendment: A change, either to correct an error or to alter a part of an agreement without changing the principal idea of essence.
Amortization: The gradual repayment of a mortgage loan by installments
Annual Percentage Rate/APR: The cost of a mortgage stated as a yearly rate; includes such items as interest, mortgage insurance, and the loan origination fee (points).
Appliance Service: Preparation of major electrical appliances to make them safe for shipment.
Application Fee: A fee charged by a lender for accepting a loan application and initiating the loan review process. It typically covers the nonrefundable costs (such as appraisal, credit reports, etc.) a lender incurs when deciding whether a loan can be granted.
Appraisal: An appraiser’s written opinion of the value of a subject property, as of a specific time or during a specific time period. It provides details of the process of determining estimated value of a property and the justification of the value.
Appraisal Variance: The difference between two or more appraised values of a property. The variance is generally expressed as percentages of the values provided in each appraisal.
Appraised Value: The most probable sales price of real estate established by the relocation appraisal process.
Area Median Income (AMI): A method for determining income eligibility for various housing programs. AMI is calculated every year by the U.S. Department of Housing and Urban Development (HUD) for every county and metropolitan area.
Area Orientation: The area orientation is a comprehensive introduction to the host city for the assignee. Generally included in the itinerary is a tour of expatriate neighborhoods, cultural highlights, parks, historical sites, discussion of currency, public transportation, school tours, houses of worship, etc.
Arm’s Length Transaction: A home sale transaction where both buyer and seller act willingly, with full knowledge of all details of the transaction.
As Is Condition: Offering in which a seller will make no repairs to housing before settlement and makes no representations as to it’s condition. Term also means the appraisal method of examining the physical aspects of a home, noting any deferred maintenance requirements.
Assessment: The amount of taxes or special improvement charges created to improve property or surrounding area. Special assessment charges are usually for the costs of streets, sidewalks, sewers, etc.
Assessed Value: Valuation of a real estate property by a public tax assessment officer or board for the purposes of taxation.
Assignment: Act of transferring an interest, such as a loan secured by a mortgage, from one person to another.
Assignment Budget Development: Preparation of assignment costs associated with the total lifecycle of the expatriate assignment from pre-departure to repatriation and incorporates essential support data to keep your employee whole while maintaining company cost effectiveness. The budget reflects real-time cost of living data, housing norms, school tuition costs, and hardship factors essential to a realistic target budget.
Assignment Letter (or Letter of Assignment): The assignment letter details all of the fundamental elements and terms and conditions pertaining to an assignment as agreed between employer and assignee. Customized details include, but are not limited to, the home and host countries, job title and parameters, compensation and benefits, assignment start and end dates, approximate repatriation date.
Assignment Management (Ongoing): Continued support and administration of contracted and authorized global relocation services for the duration of assignment. The scheduled contact may be monthly, quarterly or semi-annually as determined by client policy or directive.
Assignment Tracking and Reporting: All data and financial information pertinent to an assignment is captured for client reporting.
Assimilation/Adaptation: The process by which the employee and family fully integrates into the host country social, living and working conditions.
Association Fees/Home Owner Association Dues: Charges for maintenance or operation of facilities for a property by a management group or organization. In some cases, these fees cover taxes, utilities, or assessments.
Audit of Assignment Letters: The Assignment Letter defines assignment-related allowances to be processed, criteria specific to what is processed, payments to be delivered (ie. Home or host payroll), any additional pay items (deductions or additions) specific to each individual assignee, all which is critical for setup of compensation worksheet template
Automobile Leasing: Vehicle lease or purchase while on an assignment inclusive of research of local regulations and requirements for vehicle acquisition, obtain competitive price quotes, arrange for registration and delivery and provide financing options.
Balance Sheet configuration: Creation of balance sheet template specific to policy and assignment letter audit; includes all pay additions and deductions specific to policy and assignment letter and ensure pay elements are delivered in either the home or host location
Benefit Enlistments/Updates: Tracking of benefit dates for assignee to renew his/her standard benefit selections and advises of changes in specific benefits or policies.
Benefits Review: Identify pension scheme contribution percentages (EE & ER); identifies additional Deferred Compensation tracking requirements (percentage and/or amount); identifies stock option vesting schedules; critical to setup of per pay period payroll processing and compensation reporting
Bill of Lading (B/L): The receipt for your goods and the contract for their transportation. It is your responsibility to understand the bill of lading before you sign it. If you do not agree with something on the bill of lading, do not sign it until you are satisfied that it is correct. The bill of lading is an important document. Don’t lose or misplace your copy.
Booking Agent: Agent or person who sells and registers your move. A booking agent does not necessarily have to be located at or near the origin or destination.
Bridge Loan: A loan that is provided to an employee by his/her company to assist in purchasing a destination home when the departure home has not yet sold. The loan is typically interest free.
Broker (Real Estate): Any person, partnership, association, or corporation who, for compensation or valuable consideration, sells or offers for sale, buys or offers to buy, or negotiates the purchase, sale, lease or exchange of real estate. Brokers must be licensed.
Broker Market Analysis (BMA): A standard relocation industry format used by an agent to establish the most likely sales price and suggested list price of a property.
Broker Price Opinion (BPO): A marketing analysis of a subject property performed by a real estate broker or sales agent. The BPO reflects the best estimate of value as determined by a broker or sales associate who estimates value using comparable sales, recent listings, and knowledge of the local real estate market.
Buy Down: Money advanced to a mortgage to reduce monthly payments of a home mortgage. The buy down can be long-term, covering the life of the loan, or it can be short-term, reducing the mortgage payments for a certain time period.
Buyer Value Option (BVO): A home sale program in which the value for the home is established by a bona fide offer from an outside buyer, and not by an appraised value offer from the employer or relocation service company.
Buyout: The purchase of a home by a third-party company to alleviate the owners from the responsibility of selling the home themselves. The home is then sold by the third party company.
Candidate Assessment & Selection: Validated assessment tools, screening and selection processes to evaluate the innate qualities of a particular assignment candidate and their pre-disposition for an international assignment. The process allows human resource professionals and business unit managers to develop a qualified candidate pool for short and long term assignments where management and interface with multinational teams is critical to the completion of the project.
Candidate Pool Development: Customized programs integrated with internal talent review processes to produce a pool of “ready now” candidates for international assignment
Capital Gains: Gains realized from the sale of capital assets. Generally, the difference between cost and selling price, less certain deductible expenses. Used mainly for income tax purposes.
Capital Improvement: An expenditure that adds to the value or useful life of property and is considered a permanent investment to be added to the cost basis of the property. Capital improvements are different from the cost of maintenance and repairs.
Career Planning: Long-range strategic plan to develop the skills and knowledge of a particular employee that will ultimately benefit both the employee and the company. It is approached from the dual perspective of the ambitions of the individual and the anticipated needs of the corporation and aligns the individual and company in a partnership of mutual interest, and then create a plan of execution that both can support.
Carrier: The mover providing transportation of your household goods.
Carrying Costs: Recurring costs and extraordinary charges of holding a property in inventory. This could include insurance, utilities, mortgage interest, taxes, assessments, repairs, maintenance etc.
Cash on Deliver (COD): Transportation for a private shipper for which payment is required at the time of delivery at the destination residence (or warehouse).
Certificate of Occupancy (C of O): An inspection of property and fee required by local government authority at the time of resale. It can include plumbing, heating, electrical and structural inspections. This certificate ensures that local, county, or state code requirements have been met.
Certificate of Title: In areas where attorneys examine abstracts or chains of title, a written opinion, executed by the examining attorney, stating that title is vested as stated in the abstract.
Certificates of Coverage (COC or E101): Apply for Canadian and US outbound assignee Certificates of Coverage. We maintain copy of certificate and input relevant data into system for tracking and reporting. We apply for extensions as required (US & Canada only), notify Tax Partner when extensions need to be applied for
Certified Relocation Professional (CRP): A designation from the Employee Relocation Council (ERC) earned after demonstrating experience in the relocation industry and receiving a passing score on the certification exam administered by ERC.
Chain of Title: The successive ownerships or transfers in the history of title to a tract of land.
Claim: A written statement requesting reimbursement for an item that is lost or damaged while in the carrier’s possession.
Clear Title: Real property ownership free of liens, especially voluntary liens such as mortgages.
Closing: A meeting among the parties and/or their representatives to close a sales contract. After settling the details that relate to the sale of a property, the seller signs and delivers the deed to the buyer. The buyer authorizes payment to the seller and the home sale transaction is completed or closed.
Closing Assistance: Programs that allow the Corporation or Relocation Service Company to assume responsibility from the seller for the closing of a property.
Closing Costs: Any fees or charges paid by the borrowers or sellers during the closing of a real estate sale. Typical buyer’s expenses- documentary stamps on notes, recording deed and mortgage, escrow fees, attorney’s fee, title insurance, appraisal and inspection, survey charge. Seller’s expenses- cost of abstract, documentary stamps on deed, real estate commission, recording mortgage, survey charge, escrow fees and attorney’s fees.
Closing Date: The date on which ownership of a property is transferred to a buyer and closing costs are paid.
Cloud on Title: An outstanding claim or encumbrance, which, if valid, would affect or impair the owner’s title.
Collateral: Property pledged as security for a debt, such as the real estate pledged as security for a mortgage.
Commitment Fee: Any fee paid by a potential borrower to a lender for the lender’s promise to lend money at a specified rate and within a given time.
Common Lands: The land, roadways, recreational facilities, and building sections owned jointly, most
Commuter Assignment: Employee commutes, long term or short term, between the home and host country to complete a defined business objective. The primary residence and family remain in the home country. Trips home can be weekly or monthly depending on the assignment length and distance between the home and host locations.
Comparables: Properties that are equivalent or similar to the subject property. Brokers and appraisers use comparables to establish value in their opinion of market value. The three most significant kinds of comparables are recent sales, competing listings, and new construction.
Competitive Market Analysis: See Broker Price Opinion.
Completion bonus: A payment to the employee as a reward upon the completion of the defined business goals set for an assignment/transfer.
Concessions: Items granted to a buyer that are outside the original terms of the listing agreement i.e. closing Costs, mortgage discounts points, etc.
Construction Loan: A short-term loan to pay for the construction costs of a building or home. These loans typically provide periodic disbursements to the builder as each stage of the building or home are completed. When construction is completed a take-out or permanent loan is used to pay off the construction loan.
Contingency: The insertion of language into a contract of sale which requires that a stated event, such as obtaining mortgage financing, or conducting inspections, selling a home must occur before the contract becomes binding.
CONUS: Continental United States. A term used by government to denote moves where both the current and new locations are defined as being within the continental United States. CONUS includes only the 48 contiguous states, not Alaska and Hawaii.
Conveyance: The transfer of the title of land from one person to another.
Cooperative or Co-op: A property, such as an apartment, whose title is held by a corporation with residents owning shares in such corporation that entitle them to occupy a certain amount of living space pursuant to a lease granted by the corporation.
Cost Estimate (or Cost Projection): A detailed estimate of the expected total costs necessary to send an employee to a specific host location for a determined period, generally including salary, allowances, housing, tax, relocation and other assignment-related costs.
Cost Estimate Configuration: Specific to each client policy, estimates are defined per services detailed in Policy; hypothetical tax calculator is configured and definition of actual home & host tax calculations are created
Cost of Funds Index (COFI): An index of financial institution costs used to set interest rates for some ARMs.
Cost of Living Differential: Compensation provided to employees moved by a company to a location where the cost of living is higher than at the employee’s former location. Typically, companies pay the differential as a salary supplement based of researched data involving the differences in the costs of housing taxes, transportation, and goods, and services between the two locations.
Cost of Living/Goods & Services Updates: Update spendable and goods and services differentials based on data received from Client’s data provider. Implement changes through payroll process.
Credit Report: A report of an individual’s credit history prepared by a credit bureau and used by a lender in determining a loan applicant’s creditworthiness.
Cultural Training: A comprehensive Cultural Training program prepares the assignee and family for their expatriate assignment and being immersed in another culture. Understanding the cultural protocols and the general “do’s and don’ts” of the host country lays a strong foundation for an easier and more enriching assimilation and assignment. Cultural training facilitates a faster, more effective personal and professional transition for the assignee and family for easier interaction with host country colleagues and locals. One or two day sessions are led by a professional trainer, who will customize the program to the needs of the expatriate and within the parameters of client policy.
Culture Shock: The impact of cultural differences upon living in a new country and the process of learning to navigate in a new culture, of adjusting and adapting to new attitudes, beliefs, lifestyles and ways of doing things.
Currency Controls: Some countries limit the amount of money that may be taken out of the country either by taxing the amount transferred or by not permitting money to be transferred beyond a certain amount over a specified period.
CWT: 100 weight. A freight shipping term used to denote “per 100 pounds” of specified weight. It always is qualified as the type of weight involved, e.g., gross, net, gross chargeable, or dimensional.
Debentures: A type of debt instrument that is not secured by physical asset or collateral. Debentures are backed only by the general creditworthiness and reputation of the issuer. Debentures are often used to secure a school position, particularly in Asia.
Deductible Expenses: Deductible expenses are those that are included in the employee’s taxable income for which he/she is entitled to claim a federal or state tax deduction.
Deed: A written instrument by which title to real property is transferred from one owner to another. The deed should contain an accurate description of the property being conveyed, should be signed and witnessed according to the laws of the State where the property is located, and should be delivered to the purchaser at closing day. There are two parties to a deed: the grantor and the grantee.
Deed of Trust: A deed held in trust by a third party. In such a situation, the borrower transfers the title to a trustee who retains the title until a loan debt is repaid. A form of mortgage in some states.
Delinquency: A loan payment that is overdue but within the period allowed before actual default is declared.
Default: The nonperformance of a duty, whether arising under a contract or otherwise; failure to meet an obligation when due, such as failure to make mortgage payments as agreed to in the terms of the mortgage
Department of Transportation (DOT): The federal agency which, through the Surface Transportation Board within the DOT, governs the interstate transportation industry, including movers of household goods.
Departure Services (Host Country): Services rendered at the end of an expatriate assignment and are inclusive of all items associated with the termination of a tenancy. Services include but are not limited to:
- Lease termination
- Deposit refund
- Dilapidation negotiations
- Dilapidation remediation coordination and documentation
- Utilities termination and final billing
- Postal office notification
- De-registration from local government
- De-registration from school(s)
- De-registration of vehicle(s)
- Temporary living accommodations
Deposits: Employees may be required to make cash deposits in the host country for utilities, housing, schools, club membership, etc. To assist the employee with these costs, companies may pay the deposits and require employees to sign a Repayment Agreement requiring the employee to reimburse the company if the monies are not returned in full at the end of the assignment.
Depreciation: Loss of value in real property brought about age, physical deterioration or functional or economic obsolescence.
Desktop Underwriter (DU): Desktop Underwriter is an automated mortgage loan underwriting system that reduces the time, cost, and subjectivity associated with traditional mortgage underwriting.
Destination Agent: Agent located at or near your destination that provides necessary services and information at the end of your move.
Destination Service Provider (DSP): In-country service providers who assist the assignee with their area orientation, home search, school search and settling-in in the host country.
Diplomatic Clause: Language added to a lease agreement or a document in the form of an addendum to ensure the ability of the tenant to be able to terminate the lease prior to its actual end date and is, most often, stated in number of days or months.
Direct Reimbursement Program: A type of home sale program in which the corporation does not guarantee an appraised value nor does it purchase the property from the employee but does reimburse some or all direct selling costs.
Discount Broker: A real estate broker who works for a commission lower than that generally charged in the area.
Discount Point: Discount points are the sum of money charged by a lender to reduce the interest rate of any particular loan. One point is equal to 1% of the loan amount.
DITY: Do it yourself. A move where the employee personally assumes the responsibility for carriage of personal effects to the new location. This term is most commonly used by government agencies.
Documentation Preparation Fee: Charges by attorneys, title companies, escrow companies, and trust companies, to prepare legal and other papers necessary to acquire property.
Documentary (TAX) Stamps: A state tax, in the form of stamps, required on pays in cash and does not finance with a mortgage.
Dual Housing Assistance: Financial assistance that may be provided by a corporation in the event the employee purchases a new residence before selling the prior residence.
Due on Sale: A clause in a mortgage providing that if the mortgagor sells, transfers, or in any way encumbers the property, the mortgagee has the right to implement the acceleration clause making the balance of the obligation due.
Duplicate Housing Costs: When an employee is responsible for two homes due to relocation, the corporation will assume financial responsibility for one of the homes typically the departure home for a specified period of time.
Earnest Money: Money given to a seller by a buyer with an offer to purchase as an illustration of good faith.
Easement: A right of way giving persons other than the owner access to or over a property.
Education Consultancy: Education consultancies address the needs of a child’s education and how to best maximize their education experience while on international assignment while managing the practical aspects of school search through an educational needs assessment, providing detailed information on the various schools available and their admissions requirements and application process. They will often arrange school visits and interviews, prepare family for the interview process, arrange testing (if necessary or as required), provide curriculum comparisons, and review final options. This service includes provision for children with special needs.
EE: Employee. Used in internal documents and systems to denote the transferring employee.
Effective Date of the Move: The date the new position becomes effective or the hire date, if the associate is a new hire.
Encroachment: An obstruction, building or part of a building that intrudes beyond a legal boundary onto neighboring private or public land, or a building extending beyond the building line or into an easement.
Equity: The market value of real property, less the amount of existing liens
Equity Advance: Payment of a portion of the available equity in the employee’s home prior to the sale of the home.
Escalator Clause: A clause in a contract providing for the upward or downward adjustment of certain items to cover specified contingencies, particularly interest rates.
Escrow: Funds paid by one party to another (the escrow agent) to hold until the occurrence of a specified event, after which the funds are released to a designated individual. Or may be associated with mortgage transaction in which an escrow account may refer to the funds a mortgagor pays the lender at the time of the periodic mortgage payments. The money is held in a trust fund, provided by the lender for the buyer to cover yearly anticipated expenditures for mortgage insurance premiums, taxes, hazard insurance premiums and special assessments.
Escrow Officer: An individual who administers an escrow and/or carries out the procedures necessary to transfer real property.
Escrow Fees: Charges for services rendered by an escrow agent.
ETA: Estimated time of arrival. The estimated time the shipment will arrive at port of entry.
ETD: Estimated time of departure. The estimated day the driver will leave the origin with the shipment or the estimated date that a vessel is to depart from a seaport/airport.
Exchange Rate review and configuration: Review exchange rate fluctuations (5% or more) to determine if updated is required. Dependant on client-approval, process and implement updates as identified during implementation
Executive Coaching: One-on-one coaching focuses on meeting specific business objectives, as well as navigating the informal dynamics of a particular role or assignment. The executive coach serves as a formal advisor/mentor to the employee to ensure maximum potential is reached.
Expense Management: During the course of an international assignment and ultimate repatriation, the assignee incurs many relocation-related expenses that are tracked and reimbursed on behalf of the client.
Extended Business Travel: Business travel projected to last less than three months. Travel between home location and host location to attend meetings, training, supervise virtual team, and/or complete a defined task, goal or project.
Family Transition Counseling: Preparing adults and children psychologically for living in another country and culture sometimes requires emotional support and family counseling to prepare a family for their new “adventure”. Family or individual family member counseling is available as is special support tools for small children and teens.
FBO: Full buy out. Provides a guaranteed offer to purchase the employee’s home. Other names for the program include guaranteed buy out or appraised sale. The employee’s home is appraised by two or more independent appraisers. A guaranteed offer is determined by averaging the appraisals and the offer is made to the employee to purchase the home. If the employee accepts the offer, the relocation company purchases the home from the employee at the offer price. The employee has no further responsibility for the home and the relocation company carries the home in inventory until an outside buyer is found. In a separate transaction, the home is sold to an outside buyer.
FHA Mortgage: A mortgage that is insured by the Federal Housing Administration.
Federal National Mortgage Association/FNMA: A private corporation, federally chartered to provide financial products and services that increase the availability and affordability of housing by purchasing mortgage loans.
Fee Simple: The highest degree of ownership that a person can have in real estate. An interest in real estate that gives the owner unqualified ownership and full power of disposition.
FHA: Federal Housing Administration. A government agency whose main activity is insuring residential housing loans made by private lenders. It sets standards for building construction and underwriting requirements. FHA does not lend money or construct housing.
FICA: Federal Insurance Contributions Act. The combination of Social Security (OASDI) and Medicare tax rates. This term is often used to reference just the Social Security portion of the tax rate.
Fiduciary: A person who bears a special legally defined relationship of trust, confidence, and responsibility to others, such as a trustee or agent.
Finance Charge: Total amount of interest paid.
Financing: Method of providing money to a borrower for the purpose of purchasing a home.
Fixed Rate Mortgage: A mortgage in which the interest rate is constant for the entire term of the loan, typically 15 or 30 years.
Fixtures: Property that is attached to real property and is treated legally as real property while it is so attached.
Flight Charge: An extra charge for carrying items up or down flights of stairs.
FMV: Fair market value. The value of a property determined by an independent appraisal, based on comparable sales in the area.
FNMA: Federal National Mortgage Association. More commonly known as “Fannie Mae,” it is a corporation created by Congress to support the secondary mortgage market. It purchases and sells residential mortgages insured by the FHA or guaranteed by VA (see VA), as well as conventional home mortgages. FNMA sets the standards for underwriting residential mortgages.
Foreign Service Premium: A premium paid to some expatriates going on assignment. The FSP is often provided to high potential or high worth employees as an additional incentive for accepting an assignment. The FSP is sometimes provided in conjunction with hardship premiums to incentivize an employee to accept an assignment in a hardship location.
Furniture Leasing: The rental of furniture for unfurnished accommodations, this service is often used in lieu of shipping household goods or until the households arrive.
FRV: Full replacement value. The amount of money it will cost to purchase a new replacement for a damaged item, regardless of how old the damaged item was.
Functional Obsolescence: Outdated improvements limiting market value.
GBO: Guaranteed buy out. Same as FBO.
General Contractor: A builder who oversees a renovation or the construction of a house or an addition.
General Warranty Deed: The deed which conveys not only all the grantor’s interests in and title to the property to the grantee, but also warrants that if the title is defective or has a “cloud” on it (such as mortgage claims, tax liens, title claims, judgments, or mechanic’s liens against it) the grantee may hold the grantor liable.
Global Nomads: These are employees who move from one international assignment to another without returning to their home country. They are also referred to as Career Expatriates or Career Assignees.
Global Policy: A company- specific document for relocating employees, outlining terms and conditions for going on international assignment. It is consistently applied across a company’s regions, countries and business to ensure a consistent approach for all moves.
Global Talent Management Selection System Design: A constellation of tools and procedures designed to maximize workforce productivity ultimately resulting in quantifiable improvement of business results by high performance employees.
GlobePointe Configuration for Exchange Rates/COLA Index: Input client exchange rate methodology into the MSI system specific to when the rates are updated. System is updated with spendable and COLA index data provided by Client’s data provider.
GMS: Global Mobility Specialist™. A designation offered by Worldwide ERC® to allow relocation professionals to gain an understanding of global workforce mobility issues. To obtain the designation, participants must attend three training modules and pass an online exam for each module.
Goods and Services Tax (GST): The GST is a consumption tax that is placed on a product whenever value is added at a stage of production and at final sale. The amount of tax the user pays is the cost of the product less any of the costs of materials used in the product that have already been taxed. Ultimately, a GST is a sales tax that is paid by the end consumer of the good or service. It is also referred to as Value Added Tax (VAT).
Grantee/Grantor: A grantee acquires real estate by deed; a grantor conveys real estate by deed.
Gross-up: Company-provided tax allowance to offset, in whole or in part, the effect that certain taxable, nondeductible reimbursements or allowances may have on an employee’s gross income.
Guarantee Offer: An offer typically based on the average of two appraisals, made by a third party.
Handyman’s Special: Typically a house that is sold in as is condition, which needs a great deal of fixing up.
Healthcare and Benefits Consulting: International healthcare and benefits policy information and documents required to facilitate coverage for employees on international assignment.
Hauling Agent: Agent who owns the van assigned by the van line to transport your possessions.
Hardship Allowance/Hazard Pay: Hardship allowances are provided to those employees going on assignment in challenging locations with difficult conditions.
Hazard Insurance: Insurance coverage that compensates for physical damage to property from fire, wind, vandalism, or other hazards.
Healthcare and Benefits Consulting: International healthcare and benefits policy information and documents required to facilitate coverage for employees on international assignment.
High Value Article: Items included in a shipment that are valued at more than $100 per pound. These items should be disclosed to the mover to ensure they are protected accordingly.
Home Country Utility Norm: A contribution/payment by the employee if the employee’s home utilities obligation is either reduced or eliminated due to the assignment and the company is covering the utility expense payment in the host location.
Home Equity Loan: A mortgage loan, which is usually in a subordinate position, which allows the borrower to obtain multiple advances of the loan proceeds at his or her own discretion, up to an amount that represents a specified percentage of the borrower’s equity in a property.
Home Finding Trip: A home or apartment search in the new area, based on employee’s specific requirements and preferences, taken after the employee has made a decision to relocate.
Home Leave Coordination: A minimum of one home leave trip per year as part of an international assignment package.
Home Inspection: A thorough inspection that evaluates the structural and mechanical components and condition of a property. A satisfactory home inspection is often included as a contingency by the purchaser.
Home Inspection Services/Professional Engineers: Firms specializing in home inspections and professional engineering inspections of homes. Firms often offer structural, mechanical, heating/cooling, electrical, plumbing, septic, and other types of inspections and warranty services.
Home Inspector: A person who evaluates the structural soundness of a house.
Home Marketing Assistance: Designed to help the employee market their primary residence by designing a customized marketing strategy and to assist with offer negotiations.
Home Sale Assistance: Assisting the employee/homeowner with the disposition of the property. This includes, but is not limited to, property market preparation, selection of a qualified real estate agent, pricing, marketing and sale of their property.
Home Search: The global home search includes, but is not limited to, the selection and finalization of suitable housing in the host country: property viewings, lease negotiations, deposits and document requirements.
Home Selling Expenses: Expenses arising out of the sale of real estate such as brokers commission, transfer taxes, attorney and inspection fees, deed and recording fees, mortgage prepayment penalties, and incentives paid by the seller.
Homeowner Warranty: Private insurance that protects a buyer against defects such as plumbing, heating, and electrical systems in the property he/she is purchasing. The period and coverage of the insurance varies widely, and both new and existing homes may often be insured.
Household Goods (HHG): Refers to the shipment of the transferring employee’s personal belongings.
Household Goods Management: Matching the best service providers to the demographics and geography of each household goods move while utilizing major van lines to provide the highest quality service possible. This service is coordinated by MSI.
Household Goods Storage: Long term storage for employee’s personal goods while on assignment.
Housing Differential: The differential paid partially or fully to compensate for the difference in housing costs between location, either domestic or international. Usually includes home value differences as well as such ownership costs as mortgage principal and interest, property taxes, utilities, and property insurance.
HUD: Housing and Urban Development. The federal agency that monitors the compliance of federal acquisition and relocation regulations.
HUD-1 Statement: A document that provides an itemized listing of the funds that are payable at closing. Items that appear on the statement include real-estate commissions, loan fees, points, and initial escrow amounts.
Hypothetical Social Security: A deduction that represents the Social Security tax you would pay had you remained in your home country Social Security system. Used when applying the Balance Sheet approach of assignment salary build up.