The following areas must be completed prior to being able to utilize the homesale module within the application:
Homesale License
The homesale module must be included in the license purchased or be provided as a standalone module.
Homesale Service Definition
At least one service definition for homesale must be created. See the Get Started User Manual for details on how to create a Service Definition.
Relocation Policy with Homesale Services Assigned and Authorized
Once a homesale service has been defined it must be added to a Relocation Policy as either In Policy or Exception. See the Setting Up a New Client User Manual for details on how to create a Relocation Policy. In addition, the Homesale Service must be authorized for the Relocation prior to being able to access the Homesale menu.
Homesale Accounts
Accounts for homesale payments will be needed in the Chart of Accounts if Expense Management has been purchased and to be utilized for homesale activity.
Homesale Program Definition
Homesale programs can be defined at the System (on the Configuration tab Homesale Program Definition screen) or Company level (on the Company tab under the Company Configuration menu on the Homesale Program Definition screen).
While the Homesale Program Definition screen is the same for both those created at a System level will be available for all relocations; however, those created at a Company level will be available only to those relocations in that company.
Examples of homesale programs include, but are not limited to:
HBO – Home Buyout Option
BVO – Buyer Value Option
AVS – Amended Value Sale
AVP – Amended Value Program
AVO – Amended Value Option
CSO – Closing Services Only
Two tabs are available under the Homesale Program Definition Screen:
General Tab
Below is the Homesale Program Definition screen and details about the various fields. Note all fields marked with an asterisk (*) are required fields.
Homesale Status Calculation – only current option is <Default> is the current US Program see Exhibit A for status definitions.
Service – the available options will be all services defined at the Configuration Level, the appropriate homesale service should be selected. NOTE: the screens that will appear will be based on the Service selected and the associated screen groups identified in the Service Definition.
The sections listed below are available for configuring the homesale program definition:
Property Valuation Settings
Property Valuation Options – choose one of the four available
<Manual Only> - this requires the User to select which valuations are to be included in the calculation.
<System Only> - this does not allow the User to select the valuations those selected by the system are used.
<System or Manual Calculation> – will default to System; however, the User has the ability to elect to manual select the valuations to be used. This is the most common one selected.
<Neither System or Manual> - neither calculation is available. This is would be used in the case of a closing services only type program.
Property Valuation System Calculation – this defines the system calculation method for the <System Only> and <System or Manual Calculation> options. Choose one of the three available
<Average of two closest values> - the system valuation will be the average of the two closest values.
<Average of two highest values> - the system valuation will be the average of the two highest values.
<Average of all values> - the system valuation will be the average of all the values.
Hide Appraisal Sections on the Property Valuation Screen – when this is checked the appraisal section will not show on the BMA/Appraisal (Valuation) screen. For example, this would be check when the program only uses BMAs to calculate value.
Exclude BMAs from the Property Valuation Calculation - when this is checked the BMAs will be excluded from the calculation i.e. the appraisal values will only be used.
Valuation Variance Percentage – indicates what percent variance is allowed between the BMAs/Appraisals. A typical value is 5%, this means if two appraisals are received >5% a warning will occur and typically a third appraisal will be ordered.
Offer Calculation Percentage – indicates what percent of the average will be offered as the buyout to the transferee.
Offer and Acceptance Settings
Offer and Acceptance Settings “Allow… - when checked the option is available in the Offer Type dropdown list on the Offer screen as long as criteria is present. For example, if Allow Appraised Value Offer is checked but there are no appraisals entered this option will not be available.
Default Offer Period (Days) – the number of days entered will be used to calculate the offer expiration date.
Vacate Period (Days) – number of days from acceptance of offer to when property must be vacated.
Show Deed Package Received and Completed Fields on Acceptance – when checked this indication field is displayed when offer is accepted. Typically always checked unless closing services only.
Show offer Documents Received and Completed Fields on Acceptance - when checked this indication field is displayed when offer is accepted. Typically always checked unless closing services only.
Contract Settings
Allow Amended/BVO Contracts – when checked will allow Amended/BVO contracts, typically used only in guaranteed home buy out programs.
Allow Employee Executed Contracts – would typically only allow this for closing services only.
Popup Warning Message If No Active Listing Record Is Found – when checked gives warning when trying to create contract with outside buyer without an active listing.
Policy Defined Net Loss Limits
The Policy Defined Net Loss Limits section can be utilized to specify the Amended/BVO and Resale net loss limits.
Mandatory Marketing Periods
There are three stages where mandatory marketing periods can be required:
Pre-Appraisal
Pre-Offer, and
Pre-Offer Acceptance
For each there are three settings:
Enable Mandatory Marketing check box
Mandatory Marketing Period in days, and
Mandatory Marketing violation Response
<Display Warning>- a warning will be given that the mandatory marketing period has not elapsed but will not stop update.
<Abort Update> - the update will not be allowed until mandatory marketing period has passed.
Closing Settings
Hide the Escrow Instructions on the Closing Screen – this is in reference to mortgage escrows so if not giving credit at final equity for escrows then at final payoff of mortgage transferee will receive escrow funds back. This is not recommended as any payments advanced most likely included escrow deposits.
Bonus Settings
Show the Bonus section on the following screen – indicates what screen Homesale Bonus information will appear.
<Not Applicable> - no homesale bonus allowed
<Offer Acceptance> - bonus information fields will appear on Offer Acceptance screen
<Closing> - bonus information will appear on Closing screen. Note: picking this could be jeopardizing non taxability of program by “linking” bonus to closing of outside sale.
Business Rules
Offers options to suppress certain logic built in to the Homesale program. By selecting one or more of the option boxes, the system will bypass the logic and allow the user to move on to the next screen and/or feature within the Homesale program without completing previously required steps or data fields.
These options give the user more control over each Homesale program and help to customize the program to meet a company’s service offering.
Note that caution should be used when selecting one or more Business Rules options to suppress for a Homesale program to ensure the best practices built in to the Equus Platform are absolutely not needed.For any of these options that are not marked (left unchecked), the built-in business rule will continue to assist the user in following accepted best practices for a Homesale program.
When the business rule is marked (checked), the user will not receive any notification that they are not following best practices and will be allowed to bypass the particular field(s) and/or feature(s) that would normally require some action before moving forward in the system.
Summary of Business Option Rules
Suppress “One Party Listing Agreement Sent and Received Date required to execute a contract on Contract Screen –
By selecting this option, the One Party Listing Agreement Sent And One Party Listing Agreement Received dates will not be required to execute a contract with a buyer
The user will NOT be prompted to enter one or both of these dates when this option is selected
This option should only be selected when a One Party Listing Agreement is not required to complete the Homesale transaction
Don’t Require Executed Contract to enter Closing Details –
When this rule is checked, the user will not be required to click the [Accept and Create Contract] button before accessing the Closing Details screen
The user will NOT be prompted to complete the contract screen before entering closing information
Suppress “An Approved Net Proceeds Amount is required before an Actual Close Date can be added –
By marking this rule, the user will be able to enter an Actual Close Date without adding an Approved Net Proceeds amount
The user will NOT be prompted to add net proceeds when the page is saved if this rule is selected
Suppress "An Actual Close Date cannot be added until there is a Property Offer Detail record in Accepted Status" -
In cases where the service provided is Closing Only, this rule should be marked to be suppressed
Selecting this rule will allow the user to add an Actual Close Date for a property where an arms-length transaction is not required. For instance, inventory take over properties or Direct Sale services would fall into this category
Suppress "Proceeds Expected By is required when there is an Approved Net Proceeds Amount, Approval Date, or Proceeds Expected Date entered" -
When the Homesale program is Closing Only or direct sale, this rule may need to be checked
Selecting this rule will allow the user to bypass selecting a Proceeds Expected By option from the drop-down list to save the Closing record if any of the three fields (Approved Net Proceeds Amount, Approval Date and/or Proceeds Expected Date) is populated
Suppress "A Proceeds Expected Date is required when there is an Approved Net Proceeds Amount or Approval Date entered" -
When the Homesale program is Closing Only or direct sale, this rule may need to be checked
Selecting this rule will allow the user to bypass selecting a Proceeds Expected Date to save the Closing record if any of the two fields (Approved Net Proceeds Amount and/or Approval Date) is populated
Suppress "An Approval Date is required when there is an Approved Net Proceeds Amount or Proceeds Expected Date entered" -
When the Homesale program is Closing Only or direct sale, this rule may need to be checked
Selecting this rule will allow the user to bypass selecting an Approval Date to save the Closing record if any of the two fields (Approved Net Proceeds Amount and/or Proceeds Expected Date) is populated
Don't require inspections -
In the case of a “No Inspections” client or a Closing Only/direct sale program, inspections may not be required
Selecting this option allows the Homesale program to progress without checking for clear inspections
This option should not be selected if there is a chance that local custom or the mortgage provider requires one or more inspections, or if inspections could be ordered as a condition of a sale
Don't require clear title -
When the Homesale program is a direct sale, this rule may need to be checked
Selecting this rule will allow the Homesale program to progress through the entire process without a check to ensure the title is clear
Caution should be used when selecting this option and it should never be selected for a Homesale program where a clear title is required to close the transaction
Screen Inactivation Tab
Once the Homesale Program Type is saved then the Screen Inactivation tab appears.
When Inactive is set to <Yes> the screen will not appear under the Homesale menu even if the screen group was included in the Service Definition.