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Claim for Closing Costs

B-202684 Oct 19, 1981
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Highlights

A Federal Bureau of Investigation authorized certifying officer requested that GAO decide whether the closing costs paid by the seller may be reimbursed to a transferred employee who purchased a house, where the seller had not provided a statement that the closing costs were included in the sales price of the house. Under the purchase agreement, the seller was liable for closing costs, and the settlement sheet indicated that the closing costs were paid from the seller's funds. In a memorandum in support of his claim, the employee stated that the settlement sheet did not reflect what actually happened. He noted that he obtained a Veterans Administration loan and alleged that, when a VA loan is involved, the seller usually sets a higher price to cover closing costs and the points which the seller is required to pay. The crucial element in this decision was whether both the buyer and seller agreed that the closing costs were paid by the buyer. In the absence of such an agreement, reimbursement is not authorized. Since the employee had submitted neither a statement from the seller nor any other direct evidence to document his liability for closing costs, reimbursement was not allowed.

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