B-165675, DEC. 26, 1968

B-165675: Dec 26, 1968

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E. DUNKLEY: THIS IS IN REPLY TO YOUR LETTER OF NOVEMBER 7. PAYMENT WAS DENIED BECAUSE THE TAX IS ORDINARILY PAID BY THE SELLER AND SECTION 4.2G OF BUREAU OF THE BUDGET CIRCULAR NO. A -56 LIMITS THE REIMBURSEMENT OF OTHER EXPENSES INCURRED BY A BUYER TO THOSE THAT ARE CUSTOMARILY PAID BY HIM AT THE NEW STATION. THE RECORD CONTAINS A LETTER FROM A TITLE COMPANY IN ORLANDO WHICH STATES THAT THE PURCHASER "SOMETIMES" PAYS THE EXPENSES FOR WHICH REIMBURSEMENT IS CLAIMED. THE FACT THAT THE PRACTICE OF A SELLER ASSUMING THE PURCHASER'S CLOSING COSTS BY CONTRACT IS QUITE COMMON DOES NOT RAISE IT TO THE STATUS OF A CUSTOM. 1968. * * *" IT APPEARS THAT THE PAYMENT BY THE PURCHASER OF THE DOCUMENTARY STAMP TAX IN THIS CASE WAS A DEVIATION FROM THE USUAL PRACTICE OF THE SELLER TO PAY FOR THIS ITEM.

B-165675, DEC. 26, 1968

TO CAPTAIN J. E. DUNKLEY:

THIS IS IN REPLY TO YOUR LETTER OF NOVEMBER 7, 1968, REFERENCE DCRA FO, REQUESTING A DECISION AS TO WHETHER YOU MAY PAY A VOUCHER FOR $66.95, REPRESENTING RECLAIM OF CERTAIN CLOSING COSTS INCURRED BY MR. THOMAS F. JONES, AN EMPLOYEE OF YOUR AGENCY, INCIDENT TO HIS TRANSFER OF OFFICIAL STATION TO ORLANDO, FLORIDA.

THE AMOUNT RECLAIMED REPRESENTS DOCUMENTARY STAMP TAX ON THE CONVEYANCE TO HIM OF HIS NEW HOME. PAYMENT WAS DENIED BECAUSE THE TAX IS ORDINARILY PAID BY THE SELLER AND SECTION 4.2G OF BUREAU OF THE BUDGET CIRCULAR NO. A -56 LIMITS THE REIMBURSEMENT OF OTHER EXPENSES INCURRED BY A BUYER TO THOSE THAT ARE CUSTOMARILY PAID BY HIM AT THE NEW STATION. THE RECORD CONTAINS A LETTER FROM A TITLE COMPANY IN ORLANDO WHICH STATES THAT THE PURCHASER "SOMETIMES" PAYS THE EXPENSES FOR WHICH REIMBURSEMENT IS CLAIMED.

IN B-165202, SEPTEMBER 30, 1968, WE STATED THE FOLLOWING:

"NOTWITHSTANDING REAL ESTATE MARKET CONDITIONS MAY RESULT IN THE SELLER ASSUMING THE PURCHASER'S CLOSING COSTS, THE SELLER MAY NOT BE REIMBURSED UNLESS IT APPEARS THAT IT WOULD BE UNUSUAL FOR THE PURCHASER TO PAY HIS OWN CLOSING COSTS. B-164604, JULY 29, 1968. THE FACT THAT THE PRACTICE OF A SELLER ASSUMING THE PURCHASER'S CLOSING COSTS BY CONTRACT IS QUITE COMMON DOES NOT RAISE IT TO THE STATUS OF A CUSTOM. B-164181, JULY 22, 1968. * * *"

IT APPEARS THAT THE PAYMENT BY THE PURCHASER OF THE DOCUMENTARY STAMP TAX IN THIS CASE WAS A DEVIATION FROM THE USUAL PRACTICE OF THE SELLER TO PAY FOR THIS ITEM. THEREFORE, NO BASIS EXISTS FOR ALLOWANCE OF THE AMOUNT IN QUESTION. THE VOUCHER, WHICH IS RETAINED HERE, MAY NOT BE PAID.