B-163949, MAY 28, 1968
Highlights
THE ATTORNEY'S FEE WAS INCURRED BY YOU IN CONNECTION WITH THE SALE OF YOUR FORMER RESIDENCE INCIDENT TO YOUR TRANSFER OF STATION FROM FORT MONMOUTH. THE PURPOSES FOR WHICH LEGAL FEES ARE ALLOWABLE IN CONNECTION WITH REAL ESTATE TRANSACTIONS ARE GOVERNED BY SECTION 4.2C OF BUREAU OF THE BUDGET CIRCULAR NO. TO THE EXTENT SUCH COSTS HAVE NOT BEEN INCLUDED IN BROKERS' OR SIMILAR SERVICES FOR WHICH REIMBURSEMENT IS CLAIMED UNDER OTHER CATEGORIES. COSTS OF LITIGATION ARE NOT REIMBURSABLE.'. WE HAVE HELD THAT THE FEE WHICH AN EMPLOYEE PAYS TO RETAIN AN ATTORNEY TO REPRESENT AND COUNSEL HIM IN CONNECTION WITH A REAL ESTATE TRANSACTION PROPERLY MAY NOT BE REIMBURSED UNDER SECTION 4.2C.
B-163949, MAY 28, 1968
TO MR. JAMES G. HILTON:
WE REFER TO YOUR LETTER OF MARCH 25, 1968, WITH ENCLOSURE, REQUESTING REVIEW OF OUR OFFICE SETTLEMENT DATED MARCH 13, 1968, WHICH DISALLOWED YOUR CLAIM FOR REIMBURSEMENT FOR AN ATTORNEY'S FEE OF $125.
THE ATTORNEY'S FEE WAS INCURRED BY YOU IN CONNECTION WITH THE SALE OF YOUR FORMER RESIDENCE INCIDENT TO YOUR TRANSFER OF STATION FROM FORT MONMOUTH, NEW JERSEY, TO GRAVELLY POINT, VIRGINIA, UNDER TRAVEL ORDER DATED JUNE 5, 1967.
IN LETTER OF MARCH 20, 1968, YOUR ATTORNEY STATES THAT THE LEGAL SERVICES RENDERED BY HIM INCLUDED AN EXAMINATION OF THE CONTRACT OF SALE, NEGOTIATIONS REGARDING THE SALE, AND PREPARATION OF THE DEED AND AFFIDAVIT OF TITLE.
THE PURPOSES FOR WHICH LEGAL FEES ARE ALLOWABLE IN CONNECTION WITH REAL ESTATE TRANSACTIONS ARE GOVERNED BY SECTION 4.2C OF BUREAU OF THE BUDGET CIRCULAR NO. A-56, REVISED OCTOBER 12, 1966, AS FOLLOWS:
"LEGAL AND RELATED COSTS. TO THE EXTENT SUCH COSTS HAVE NOT BEEN INCLUDED IN BROKERS' OR SIMILAR SERVICES FOR WHICH REIMBURSEMENT IS CLAIMED UNDER OTHER CATEGORIES, CUSTOMARY COSTS OF SEARCHING TITLE, PREPARING CONVEYANCES AND OTHER INSTRUMENTS, AND PREPARING CONTRACTS, RELATED NOTARY FEES, RECORDING FEES, MAKING SURVEYS, PREPARING DRAWINGS OR PLATS WHEN REQUIRED FOR LEGAL OR FINANCING PURPOSES, AND SIMILAR EXPENSES, MAY BE REIMBURSED EITHER WITH RESPECT TO SALE OF THE RESIDENCE AT THE OLD OFFICIAL STATION OR PURCHASE OF A DWELLING AT THE NEW OFFICIAL STATION, BUT THE SAME TYPES OF COSTS SHALL NOT BE PAID AT BOTH LOCATIONS. COSTS OF LITIGATION ARE NOT REIMBURSABLE.'
WE HAVE HELD THAT THE FEE WHICH AN EMPLOYEE PAYS TO RETAIN AN ATTORNEY TO REPRESENT AND COUNSEL HIM IN CONNECTION WITH A REAL ESTATE TRANSACTION PROPERLY MAY NOT BE REIMBURSED UNDER SECTION 4.2C, ABOVE.
OF THE VARIOUS SERVICES PERFORMED BY YOUR ATTORNEY IN CONNECTION WITH THE SALE OF YOUR FORMER RESIDENCE ONLY THOSE RELATING TO THE PREPARATION OF DEED AND AFFIDAVIT OF TITLE APPEAR TO BE REIMBURSABLE ITEMS UNDER SECTION 4.2C OF THE REGULATIONS. HOWEVER, SINCE YOUR ATTORNEY FAILED TO IDENTIFY THE AMOUNT OF THE TOTAL FEE ($125) ALLOCBLE TO THOSE ITEMS, WE MAY NOT ALLOW ANY PORTION OF YOUR CLAIM ON THE PRESENT RECORD.