B-161886, JUL. 21, 1967

B-161886: Jul 21, 1967

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EMPLOYEES - TRANSFERS - PUBLIC LAW 89-516 - HOME SALE AND PURCHASE EXPENSES CERTIFYING OFFICER OF FOREST SERVICE ADVISED THAT EMPLOYEE WHO WAS TRANSFERRED FROM PORTLAND. INCIDENT TO HIS TRANSFER WHICH WAS EFFECTED IN FEBRUARY 1967. IN WHICH WE HELD THAT THE COST OF TITLE INSURANCE PAID BY AN EMPLOYEE IN CONNECTION WITH THE SALE OF HIS RESIDENCE AT HIS OLD DUTY STATION IS REIMBURSABLE TO THE EXTENT THAT THE SELLER CUSTOMARILY FURNISHES THE BUYER TITLE INSURANCE PROTECTION OF THE TYPE INVOLVED IN THE LOCALITY OF THE SALE. THE STATEMENT OF THE VICE PRESIDENT OF THE TRANSAMERICA TITLE INSURANCE COMPANY OF OREGON WHICH IS ATTACHED TO MR. TRACY'S VOUCHER IS TO THE EFFECT THAT THE GENERAL PRACTICE IN OREGON IS FOR THE SELLER TO FURNISH TITLE INSURANCE FOR THE BENEFIT OF THE BUYER.

B-161886, JUL. 21, 1967

EMPLOYEES - TRANSFERS - PUBLIC LAW 89-516 - HOME SALE AND PURCHASE EXPENSES CERTIFYING OFFICER OF FOREST SERVICE ADVISED THAT EMPLOYEE WHO WAS TRANSFERRED FROM PORTLAND, OREGON TO REDDING, CALIF; MAY BE ALLOWED COST OF TITLE INSURANCE PURCHASED AS SELLER OF HIS RESIDENCE IN PORTLAND IN VIEW OF GENERAL PRACTICE IN AREA FOR SELLER TO FURNISH INSURANCE FOR BENEFIT OF BUYER. HOWEVER, THE $10 INSPECTION FEE INCIDENT TO PURCHASE OF A RESIDENCE AS A PART OF THE TITLE INSURANCE MAY NOT BE CERTIFIED FOR PAYMENT.

TO MR. H. C. AGER, AUTHORIZED CERTIFYING OFFICER, CALIFORNIA REGION, FOREST SERVICE, UNITED STATES DEPARTMENT OF AGRICULTURE:

WE REFER TO YOUR LETTER OF JUNE 14, 1967, YOUR REFERENCE 6540, FORWARDING FOR OUR ADVANCE DECISION THE RECLAIM TRAVEL VOUCHER OF MR. ROBERT H. TRACY, JR; AN EMPLOYEE OF THE FOREST SERVICE, DEPARTMENT OF AGRICULTURE, TO REIMBURSE HIM FOR CERTAIN COSTS HE INCURRED IN THE SALE OF HIS RESIDENCE AT HIS OLD OFFICIAL STATION, PORTLAND, OREGON, AND PURCHASE OF A RESIDENCE AT HIS NEW OFFICIAL STATION, REDDING, CALIFORNIA, INCIDENT TO HIS TRANSFER WHICH WAS EFFECTED IN FEBRUARY 1967.

MR. TRACY RECLAIMS REIMBURSEMENT OF THE COST OF TITLE INSURANCE HE PURCHASED AS SELLER OF HIS RESIDENCE IN PORTLAND--- $90--- AND THE COST OF AN INSPECTION FEE CHARGED HIM IN CONNECTION WITH HIS PURCHASE OF TITLE INSURANCE ON HIS RESIDENCE AT REDDING--- $10--- UNDER THE PROVISIONS OF SECTION 4 OF BUREAU OF THE BUDGET CIRCULAR NO. A-56.

WE ENCLOSE A COPY OF OUR DECISION OF JUNE 27, 1967, B-161459, 46 COMP. GEN. - , IN WHICH WE HELD THAT THE COST OF TITLE INSURANCE PAID BY AN EMPLOYEE IN CONNECTION WITH THE SALE OF HIS RESIDENCE AT HIS OLD DUTY STATION IS REIMBURSABLE TO THE EXTENT THAT THE SELLER CUSTOMARILY FURNISHES THE BUYER TITLE INSURANCE PROTECTION OF THE TYPE INVOLVED IN THE LOCALITY OF THE SALE. THE STATEMENT OF THE VICE PRESIDENT OF THE TRANSAMERICA TITLE INSURANCE COMPANY OF OREGON WHICH IS ATTACHED TO MR. TRACY'S VOUCHER IS TO THE EFFECT THAT THE GENERAL PRACTICE IN OREGON IS FOR THE SELLER TO FURNISH TITLE INSURANCE FOR THE BENEFIT OF THE BUYER, AND THE SCHEDULE OF TITLE INSURANCE RATES WHICH IS ALSO ATTACHED VERIFIES THE AMOUNT CLAIMED AS EQUAL TO THE COST OF TITLE INSURANCE ON REAL ESTATE OF THE VALUE INVOLVED. ACCORDINGLY, MR. TRACY'S CLAIM FOR REIMBURSEMENT OF THE COST OF TITLE INSURANCE MAY BE CERTIFIED FOR PAYMENT.

THE $10 INSPECTION FEE CLAIMED BY MR. TRACY IS IDENTIFIED ON THE CLOSING STATEMENT FOR THE PURCHASE OF THE RESIDENCE IN REDDING AS A PART OF THE FEE FOR "ATA" TITLE INSURANCE. A NOTE ON THAT STATEMENT IDENTIFIES THE TITLE INSURANCE INVOLVED AS AN AMERICAN TITLE ASSOCIATION OWNER'S POLICY. SECTION 4.2D OF CIRCULAR NO. A-56 SPECIFICALLY PROHIBITS REIMBURSEMENT TO EMPLOYEES FOR THE COST OF AN OWNER'S TITLE POLICY ON RESIDENCES THEY PURCHASE AT THEIR NEW DUTY STATIONS. THAT PROHIBITION APPLIES TO THE INSPECTION FEE CHARGED INCIDENT TO THE OBTAINING OF SUCH COVERAGE AS WELL AS TO THE COST OR PREMIUM PAID FOR SUCH COVERAGE. THEREFORE, MR. TRACY'S CLAIM FOR REIMBURSEMENT OF THAT CHARGE IS NOT ALLOWABLE.

THE VOUCHER WHICH IS RETURNED HEREWITH MAY BE CERTIFIED FOR PAYMENT IN THE AMOUNT OF $90 IF OTHERWISE CORRECT.