B-165022, SEPT. 6, 1968

B-165022: Sep 6, 1968

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WHICH WAS EFFECTIVE ON OCTOBER 17. HE WAS CHARGED AND PAID PAUL L. 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.'. SHULTZ WAS NOT CHARGED THE USUAL BROKER'S FEES FOR SERVICES WHICH INCLUDE FINDING A BUYER FOR THE PROPERTY. HE WAS CHARGED FEES FOR THE SERVICES OF A BROKER THAT WERE NECESSARY IN CONSUMMATING THE SALE OF HIS RESIDENCE INCLUDING SOME SERVICES SPECIFICALLY COVERED BY SECTION 4.2C OF CIRCULAR NO. TO THE EXTENT THAT THOSE CHARGES WERE REASONABLE AND ARE CUSTOMARILY PAID BY SELLERS OF RESIDENTIAL PROPERTY IN THE AREA INVOLVED FOR SERVICES OF THE TYPE RENDERED.

B-165022, SEPT. 6, 1968

TO MR. E.U. BERNAUER:

WE REFER TO YOUR LETTER OF AUGUST 6, 1968, BY WHICH YOU FORWARD FOR OUR ADVANCE DECISION THE TRAVEL VOUCHER OF MR. FORREST G. SHULTZ, AN EMPLOYEE OF THE BUREAU OF MINES, UNITED STATES DEPARTMENT OF THE INTERIOR, FOR REIMBURSEMENT OF CERTAIN EXPENSES HE INCURRED IN CONNECTION WITH THE SALE OF HIS RESIDENCE AT HIS OLD DUTY STATION IN CONNECTION WITH HIS TRANSFER FROM BEL AIR, MARYLAND, TO MORGANTOWN, WEST VIRGINIA, WHICH WAS EFFECTIVE ON OCTOBER 17, 1967.

ALTHOUGH MR. SHULTZ DID NOT SELL HIS RESIDENCE THROUGH A REAL ESTATE AGENT OR BROKER, HE APPARENTLY ENGAGED PAUL L. GLACKIN OF PAUL L. GLACKIN, INC., REAL ESTATE, TO HANDLE THE FORMALITIES OF THE SALE. HE WAS CHARGED AND PAID PAUL L. GLACKIN, INC., $225 FOR SERVICES RENDERED IN CONNECTION WITH THAT TRANSACTION. REIMBURSEMENT FOR THE SERVICES IN QUESTION APPEARS TO BE COVERED BY SECTION 4.2A OF BUREAU OF THE BUDGET CIRCULAR NO. A-56 WHICH DEALS WITH REAL ESTATE BROKER'S FEES AND BY SECTION 4.2C OF THAT CIRCULAR WHICH PROVIDES:

"C. 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.'

THUS, ALTHOUGH MR. SHULTZ WAS NOT CHARGED THE USUAL BROKER'S FEES FOR SERVICES WHICH INCLUDE FINDING A BUYER FOR THE PROPERTY, HE WAS CHARGED FEES FOR THE SERVICES OF A BROKER THAT WERE NECESSARY IN CONSUMMATING THE SALE OF HIS RESIDENCE INCLUDING SOME SERVICES SPECIFICALLY COVERED BY SECTION 4.2C OF CIRCULAR NO. A-56.

THEREFORE, TO THE EXTENT THAT THOSE CHARGES WERE REASONABLE AND ARE CUSTOMARILY PAID BY SELLERS OF RESIDENTIAL PROPERTY IN THE AREA INVOLVED FOR SERVICES OF THE TYPE RENDERED, MR. SHULTZ MAY PROPERLY BE REIMBURSED THE AMOUNT HE PAID. SEE GENERALLY, B-164604, JULY 29, 1968, COPY ENCLOSED.

THE VOUCHER WHICH IS RETURNED HEREWITH, TOGETHER WITH SUPPORTING PAPERS, MAY PROPERLY BE CERTIFIED FOR PAYMENT TO THE EXTENT THAT IT HAS BEEN DETERMINED THAT THE CHARGES INVOLVED ARE REASONABLE AND THAT THE SELLER OF RESIDENTIAL PROPERTY IN THE AREA IN QUESTION CUSTOMARILY PAYS SUCH CHARGES IN CONNECTION WITH A TRANSACTION OF THE TYPE INVOLVED.