Issue link: https://www.e-digitaleditions.com/i/927891
28 Exclusion clause Gross sale price Gross-up Guarantee against loss Home marketing assistance Provision placed in listing agreement in which the broker acknowledges that he/she will earn no commission if the employee sells the home to the purchaser (employer/third-party company). It should be inserted into every listing agreement involving a relocation employee with a buy-out , amended-value, or buyer-value option closing option in his/her pre-marketing program. Sale price before any concessions. Term given to paying the employee additional income to offset the increased tax liability for reimbursements paid under a relocation program, sometimes called "making the employee whole." Tax gross- up policies vary from company to company. Amended-value programs are used in order to avoid the necessity of grossing up the real estate commission, since such gross-up cost would be significant. Type of home-sale program in which the corporation does not purchase the property from the employee but does provide the employee with a "guarantee" – usually based on appraised value. After closing, the employee is paid the difference and the amount is treated as taxable income which may or may not be tax protected. Also called pre-marketing or advance marketing, this is the program offered by some corporate relocation policies to create an employee- generated sale prior to buy-out. HMA programs focus heavily on proper pricing and conditioning, agent selection, performance monitoring, and creative strategies to sell the home quickly Successful HMA programs save the corporation approximately 10-12% of the value of the home for an early sale versus buy-outs.