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[Claim for Reimbursement of Noncustomary Expenses Incurred in Purchase of Property]

B-210604 Aug 24, 1983
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Highlights

The Department of the Interior requested an advance decision as to whether reimbursement of attorney fees incident to the purchase of a residence is limited by what is customary in the normal transaction or whether fees incurred to facilitate the transfer of a marketable title may be reimbursed where the purchase transaction is complicated by the seller's death prior to closing. Pursuant to a transfer, an Interior employee made an offer to purchase a unit in a residential building which was under construction. Since no real estate agents were involved, he obtained the services of an attorney to draft a purchase order and render related services. However, one of the sellers died before the transaction was completed, and the employee incurred additional attorney fees for research, negotiations, and the drafting of necessary documents. The additional legal work was necessitated by title complications because the property, which reverted to a trust, became subject to claims for estate and inheritance taxes. Federal Travel Regulations make broad provision for the payment of legal fees which are customarily paid by the purchaser of a residence at a new duty station, provided they do not exceed amounts charged in the particular locality. In this case, since the legal services were necessary to the transfer of title and were customarily paid for by the purchaser, the fees may be reimbursed insofar as the number of hours billed is reasonable for any particular complications involved and the hourly rate charged is within the customary range of charges for such services.

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