B-165115, SEPT. 11, 1968

B-165115: Sep 11, 1968

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E. INGLES: THIS IS IN REPLY TO YOUR REQUEST OF JULY 26. ALTHOUGH THE SETTLEMENT IS DATED MORE THAN 1 YEAR AFTER HE REPORTED FOR DUTY IN HAWAII. WE DO NOT FIND ANY BASIS UNDER THE REGULATIONS CITED FOR THE VIEW THAT THE SIGNING OF THE CUSTOMARY AGREEMENT FOR THE PURCHASE OF REAL ESTATE IS TANTAMOUNT TO "SETTLEMENT" AS THAT TERM IS ORDINARILY USED AND UNDERSTOOD. WHICH IS REQUIRED TO BE MADE WITHIN 1 YEAR AFTER THE EMPLOYEE REPORTS FOR DUTY. WAS NOT MADE WITHIN 1 YEAR AFTER THE EMPLOYEE REPORTED IN HAWAII. THE VOUCHER WHICH IS BEING RETAINED HERE MAY NOT BE PAID.

B-165115, SEPT. 11, 1968

TO MAJOR J. E. INGLES:

THIS IS IN REPLY TO YOUR REQUEST OF JULY 26, 1968, REFERENCE SERIAL: D5/1377F, FOR AN ADVANCE DECISION AS TO WHETHER A VOUCHER FOR $1,517.52 IN FAVOR OF MR. ROBERT P. KAVANAGH, AN EMPLOYEE OF YOUR AGENCY, MAY BE PAID. MR. KAVANAGH CLAIMS REIMBURSEMENT FOR EXPENSES INCURRED BY HIM IN CONNECTION WITH THE SALE OF A RESIDENCE AT HIS OLD OFFICIAL STATION INCIDENT TO HIS TRANSFER FROM FORT GEORGE G. MEADE, MARYLAND, TO HONOLULU, HAWAII.

MR. KAVANAGH REPORTED TO HIS NEW DUTY STATION ON MAY 1, 1967. IN SUPPORT OF HIS RECLAIM VOUCHER HE SUBMITTED COPIES OF A CONTRACT FOR THE SALE OF THE OLD RESIDENCE, DATED APRIL 26, 1968, AND A MEMORANDUM OF SETTLEMENT, DATED MAY 21, 1968. ALTHOUGH THE SETTLEMENT IS DATED MORE THAN 1 YEAR AFTER HE REPORTED FOR DUTY IN HAWAII, MR. KAVANAGH BELIEVES THAT THE DATE ON THE CONTRACT OF SALE (REQUIRING SETTLEMENT WITHIN 30 DAYS) TOGETHER WITH THE PROOF THAT THE SETTLEMENT DID, IN FACT, TAKE PLACE PROVIDES SUFFICIENT DOCUMENTARY EVIDENCE OF SETTLEMENT WITHIN THE 1-YEAR TIME LIMIT IN SECTION 4.1D, BUREAU OF THE BUDGET CIRCULAR NO. A-56, AND PARAGRAPH C8350, VOLUME 2, JOINT TRAVEL REGULATIONS.

WE DO NOT FIND ANY BASIS UNDER THE REGULATIONS CITED FOR THE VIEW THAT THE SIGNING OF THE CUSTOMARY AGREEMENT FOR THE PURCHASE OF REAL ESTATE IS TANTAMOUNT TO "SETTLEMENT" AS THAT TERM IS ORDINARILY USED AND UNDERSTOOD. B-160799, MAY 20, 1968. ALSO, IN B-164638, AUGUST 13, 1968, WE STATED THE FOLLOWING:

"IN BUREAU OF THE BUDGET CIRCULAR NO. A-56, SECTION 4.1D, THE TERM "SETTLEMENT" , WHICH IS REQUIRED TO BE MADE WITHIN 1 YEAR AFTER THE EMPLOYEE REPORTS FOR DUTY, REFERS TO THE CLOSING OF A REAL ESTATE TRANSACTION BY THE PAYMENT OF THE CONTRACT PRICE CONSIDERATION, THE TRANSFER OR CONVEYANCE OF TITLE BY DEED OR OTHERWISE, AND THE EXECUTION OF SUCH DOCUMENTS AS CREATE OR EVIDENCE THE LIENS SECURED BY THE REAL ESTATE CONVEYED. THE CIRCULAR CONTEMPLATES THE USUAL, NORMAL AND CUSTOMARY SETTLEMENT TRANSACTION BY WHICH A PURCHASER ACQUIRES TITLE TO IMPROVED REAL ESTATE TO BE USED AS HIS RESIDENCE.'

SINCE SETTLEMENT, AS DEFINED ABOVE, WAS NOT MADE WITHIN 1 YEAR AFTER THE EMPLOYEE REPORTED IN HAWAII, THE VOUCHER WHICH IS BEING RETAINED HERE MAY NOT BE PAID.