B-165611, DECEMBER 19, 1968, 48 COMP. GEN. 419

B-165611: Dec 19, 1968

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INCURRED BY A TRANSFERRED EMPLOYEE IN THE SALE OF A PARCEL OF LAND HE HAD ACCEPTED IN PARTIAL PAYMENT FOR HIS RESIDENCE AT THE OLD DUTY STATION ARE NOT REIMBURSABLE UNDER SECTION 4. HE POINTS OUT THAT HE WAS OBLIGATED. - BUT THAT BY AGREEMENT SUCH COMMISSION WAS ELIMINATED PROVIDED THE BROKER WAS PERMITTED TO EVENTUALLY SELL THE PARCEL OF LAND INVOLVED AND RECEIVE THE COMMISSION THEREON. THE EXPENSES CLAIMED ARE ALL CONNECTED WITH THE SALE OF THE LAND ONLY. WE NOTE THAT THE EMPLOYEE IS OF THE OPINION THAT BY SUCH AGREEMENT HE SAVED THE GOVERNMENT APPROXIMATELY $900. COVER ALLOWANCES FOR EXPENSES INCURRED IN CONNECTION WITH REAL ESTATE TRANSACTIONS UPON PERMANENT CHANGE OF STATION AND ARE FOR APPLICATION HERE.

B-165611, DECEMBER 19, 1968, 48 COMP. GEN. 419

OFFICERS AND EMPLOYEES - TRANSFERS - RELOCATION EXPENSES - HOUSE SALE - COLLATERAL TRANSACTIONS THE EXPENSES, INCLUDING A REAL ESTATE COMMISSION, INCURRED BY A TRANSFERRED EMPLOYEE IN THE SALE OF A PARCEL OF LAND HE HAD ACCEPTED IN PARTIAL PAYMENT FOR HIS RESIDENCE AT THE OLD DUTY STATION ARE NOT REIMBURSABLE UNDER SECTION 4, BUREAU OF THE BUDGET CIRCULAR NO. A-56, NOTWITHSTANDING A POSSIBLE SAVINGS TO THE GOVERNMENT BY REASON OF THE REAL ESTATE BROKER RELINQUISHING THE COMMISSION ON THE RESIDENCE FOR THE OPPORTUNITY TO SELL AND RECEIVE A COMMISSION ON THE LAND, THE COLLATERAL TRANSACTION NOT HAVING BEEN CONNECTED WITH THE SALE OF THE EMPLOYEE'S RESIDENCE INCIDENT TO THE PERMANENT CHANGE OF STATION.

TO CAPTAIN BRUCE C. STARLING, DEPARTMENT OF THE ARMY, DECEMBER 19, 1968:

YOUR LETTER OF NOVEMBER 6, 1968, 879-1110-4263/4215, ENCLOSING PAPERS SHOWING CERTAIN EXPENSES INCURRED BY AN EMPLOYEE IN CONNECTION WITH A COLLATERAL REAL ESTATE TRANSACTION RESULTING FROM AN OFFICIAL CHANGE OF DUTY STATION, ASKS WHETHER SUCH EXPENSES MAY BE REIMBURSED UNDER THE FACTS AND CIRCUMSTANCES HEREINAFTER RELATED BASED UPON APPLICABLE PROVISIONS OF THE BUREAU OF THE BUDGET CIRCULAR NO. A-56, REVISED OCTOBER 12, 1966.

THE EMPLOYEE ADVISES THAT HE PERSONALLY SOLD HIS RESIDENCE AT THE OLD DUTY STATION AND ACCEPTED IN PARTIAL PAYMENT A PARCEL OF LAND WHICH HE HAD NO INTENTION OF RETAINING. HE POINTS OUT THAT HE WAS OBLIGATED, TO A REAL ESTATE BROKER FOR THE 6 PERCENT COMMISSION ON SUCH SALE--- APPROXIMATELY $1,200--- BUT THAT BY AGREEMENT SUCH COMMISSION WAS ELIMINATED PROVIDED THE BROKER WAS PERMITTED TO EVENTUALLY SELL THE PARCEL OF LAND INVOLVED AND RECEIVE THE COMMISSION THEREON. THE EXPENSES CLAIMED ARE ALL CONNECTED WITH THE SALE OF THE LAND ONLY, I.E., RECORDING DEED, $6; MARYLAND STAMPS ON DEED, $2.20; REAL ESTATE COMMISSION, $300; ATTORNEY FEE FOR PREPARING DEED, $20, A TOTAL OF $328.20. WE NOTE THAT THE EMPLOYEE IS OF THE OPINION THAT BY SUCH AGREEMENT HE SAVED THE GOVERNMENT APPROXIMATELY $900.

THE PROVISIONS OF SECTION 4, CIRCULAR NO. A-56, REFERRED TO ABOVE, COVER ALLOWANCES FOR EXPENSES INCURRED IN CONNECTION WITH REAL ESTATE TRANSACTIONS UPON PERMANENT CHANGE OF STATION AND ARE FOR APPLICATION HERE. SUCH PROVISIONS WITH RESPECT TO THE MATTER PRESENTED ONLY APPLY TO CERTAIN EXPENSES INCURRED IN THE SALE OF THE RESIDENCE AT THE OLD OFFICIAL DUTY STATION AND IT APPEARS FROM THE RECORD THAT THE EMPLOYEE HAS BEEN REIMBURSED THEREFOR. THE EXPENSES CLAIMED ARE NOT CONNECTED WITH THE SALE OF THAT RESIDENCE BUT RATHER TO ANOTHER ENTIRELY SEPARATE TRANSACTION, I.E., THE SUBSEQUENT SALE OF THE PARCEL OF LAND ACCEPTED IN PARTIAL PAYMENT ON THE SALE OF THE EMPLOYEE'S RESIDENCE. WE CANNOT BY DECISION EXTEND SUCH PROVISIONS TO COVER SUCH A SITUATION ON THE BASIS OF POSSIBLE SAVINGS TO THE GOVERNMENT RESULTING FROM A COLLATERAL TRANSACTION.

IN VIEW OF THE FOREGOING, REIMBURSEMENT OF THE EXPENSES CLAIMED HERE IS NOT AUTHORIZED UNDER THE PROVISIONS OF SECTION 4, BUREAU OF THE BUDGET CIRCULAR NO. A-56, REVISED OCTOBER 12, 1966.