It's a primary residence.

I wouldn't think there would be tax ramifications, but if there is, it'll affect the price of a new residence that she can afford, so I really want to make sure. She'll buy the new house before the end of the year, before any tax form would be received. A form 1099-S shouldn't be sent since it's not a sale, but I guess we're concerned about what's in the escrow papers. If it were to somehow be considered a sale, and she's owned it for about 5 years, it seems that the $250,000 capital gains exclusion would get rid of any gain/tax anyway. Am I thinking correctly?