What is a relocation addendum?

The annex clarifies the responsibilities of the relocation transaction and includes the buyer's acknowledgment of receipt of the seller's disclosures, including the disclosure that the property is being sold as is, except for agreed repairs. The annex also explains how and when the repairs will be made. A relo is a sale of a home that is completed with the help of a relocation company. These firms are hired by companies to help their transferred employees move.

A relo company could help the transfer employee hire movers and find a rental house. If the employee is a homeowner, the relo company could help sell the old house. A relocation sale is when the owner of the property has been or is being relocated by the company or business for which they work. For the first few months, the house is on the market, usually in the employee's name, and the relocation company provides pricing and marketing advice.

If the property is being sold by a relocation company, chances are that most buyers can get a fairly good price and amenities on that sale. It's important to note that both the relocation company and the house offered for sale are often referred to as “relos”. The first sign to the buyer that the seller is working with a relocation company will be the words “a relocation annex is required” or “bank annex”, which indicates that the bank is the owner. While that favors the buyer, negotiation and paperwork can take longer, especially if the relocation company is out of state.

Buyers must have a reliable source of money that they can quickly send to the relocation company, says Tonya Hamilton, vice president of relocation at Prudential Woodmont Realty in Brentwood, Tennessee. Once the employer buys the home, the relocation company becomes the main party to the sales negotiations. While relocation sales don't necessarily translate into spot sales prices, buyers can trust that the home will be priced right for their market, says Michael Nimer, chief operating officer of OneSource Relocation, a relocation company in Marietta, Georgia. Relocation properties also tend to be in good condition because most relocation companies recommend the necessary repairs or do them themselves.

Corporate relocation services often offer employees assistance with relocation, up to the sale of the employee's current residence, as well as the purchase of a new home in the desired location.