CFR

302-12.112—Under a homesale program, may we pay an employee for losses he/she incurs on the sale of a residence?

No, under a home sale program, you may not pay an employee for losses he/she incurs on the sale of a residence, but this does not preclude you reimbursing a relocation service's company for losses incurred while the contractor holds the property.

Code of Federal Regulations

§ 302-12.112 , Nt.

Code of Federal Regulations

Effective Date Note: By FTR Amdt. 2011-01, 76 FR 18344, Apr. 1, 2011, § 302-12.112 was redesignated as § 302-12.119 and a new § 302-12.112 was added, effective Aug. 1, 2011. For the convenience of the user, the added text is set forth as follows: § 302-12.112 May we require an employee to use a mortgage service provider specified by the RSC? No. Under the Real Estate Procedures Settlement Act (RESPA), you may not require that the employee obtain any mortgage from a lender specified by the RSC. The RSC may provide the employee access to multiple mortgage service providers as long as there is no use requirement, and the employee is provided a choice. Allowing the RSC to provide access to multiple providers is not part of the standard terms for a homesale program, but it may provide a pricing advantage in negotiations with potential RSCs, as well as an opportunity for better management of the homesale process.

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