B-169132, MAY 12, 1970

B-169132: May 12, 1970

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HOUSE SALE- EXPENSES DENIED EMPLOYEE MAY NOT BE REIMBURSED FOR EXPENSES INCURRED INCIDENT TO PERMANENT CHANGE OF STATION WHICH WERE ADMINISTRATIVELY DENIED AS NOT BEING CUSTOMARY OBLIGATION OF SELLER IN AREA INVOLVED SINCE NO EVIDENCE HAS BEEN SUBMITTED TO SUBSTANTIATE THAT ITEMS WERE CUSTOMARILY PAID BY SELLER AND. WHILE LOAN SERVICE CHARGE WAS ALLOWED. SINCE SETTLEMENT WAS NOT CONSUMMATED UNTIL JULY 9. 1969 AND PREVIOUS AUTHORITY FOR ALLOWING LENDER'S LOAN FEE WAS DELETED FROM BOB CIR. RAHM IN THE AMOUNT OF $256.65 WHICH SUM WAS ADMINISTRATIVELY DISALLOWED IN CONNECTION WITH REIMBURSEMENT OF EXPENSES INCURRED IN THE SALE OF A RESIDENCE INCIDENT TO A PERMANENT CHANGE OF STATION FROM BRISTOL.

B-169132, MAY 12, 1970

OFFICERS AND EMPLOYEES--TRANSFERS--RELOCATION EXPENSES--HOUSE SALE- EXPENSES DENIED EMPLOYEE MAY NOT BE REIMBURSED FOR EXPENSES INCURRED INCIDENT TO PERMANENT CHANGE OF STATION WHICH WERE ADMINISTRATIVELY DENIED AS NOT BEING CUSTOMARY OBLIGATION OF SELLER IN AREA INVOLVED SINCE NO EVIDENCE HAS BEEN SUBMITTED TO SUBSTANTIATE THAT ITEMS WERE CUSTOMARILY PAID BY SELLER AND, WHILE LOAN SERVICE CHARGE WAS ALLOWED, SINCE SETTLEMENT WAS NOT CONSUMMATED UNTIL JULY 9, 1969 AND PREVIOUS AUTHORITY FOR ALLOWING LENDER'S LOAN FEE WAS DELETED FROM BOB CIR. NO. A-56, EFFECTIVE JUNE 26, 1969, APPROPRIATE STEPS SHOULD BE TAKEN TO COLLECT AMOUNT PAID. SEE COMP. GEN. DECS. CITED.

TO CAPTAIN J. E. DUNKLEY:

YOUR LETTER OF FEBRUARY 18, 1970, REFERENCE DCRA-FOAAP, REQUESTS AN ADVANCE DECISION AS TO THE PAYMENT OF A RECLAIM VOUCHER IN FAVOR OF MR. RICHARD D. RAHM IN THE AMOUNT OF $256.65 WHICH SUM WAS ADMINISTRATIVELY DISALLOWED IN CONNECTION WITH REIMBURSEMENT OF EXPENSES INCURRED IN THE SALE OF A RESIDENCE INCIDENT TO A PERMANENT CHANGE OF STATION FROM BRISTOL, TENNESSEE, TO ATLANTA, GEORGIA.

THE RECORD SHOWS MR. RAHM REPORTED TO HIS NEW DUTY STATION ON APRIL 13, 1969. THE SETTLEMENT DATE FOR THE SALE OF HIS RESIDENCE IS SHOWN ON THE CLOSING STATEMENT AS JUNE 2, 1969, AND HE ORIGINALLY CLAIMED REIMBURSEMENT OF EXPENSES ITEMIZED AS FOLLOWS:

REAL ESTATE COMMISSION $924.00

APPRAISAL FEE 35.00

ATTORNEY'S FEE 97.50

RECORDING FEES 65.44

MISCELLANEOUS (LOAN BROKERAGE) 149.00

$1,270.94

OF THE SELLING EXPENSES THERE WAS ADMINISTRATIVELY DENIED (1) THE ATTORNEY'S FEE OF $97.50, (2) $22.40 OF THE RECORDING FEES AND (3) THE FEE OF $149 DESIGNATED AS LOAN BROKERAGE FEE. THE RECORD SHOWS THE ATTORNEY'S FEE FOR $97.50 COVERS TITLE SEARCH AND GUARANTEE AND DRAFTING OF WARRANTY DEED, TRUST DEED AND NOTE. THIS ITEM WAS DENIED BECAUSE THE CHARGES EXCEPT THE ONE FOR DRAWING WARRANTY DEED ARE THOSE FOR WHICH THE PURCHASER IS OBLIGATED IN THE ABSENCE OF EVIDENCE TO SHOW THAT IT IS CUSTOMARY IN THE AREA FOR THE SELLER TO PAY THE SAME. NO SUCH EVIDENCE WAS SUBMITTED NOR HAS ANY EVIDENCE BEEN FURNISHED AS TO WHAT PART OF THE FEE REPRESENTED A CHARGE FOR DRAWING THE WARRANTY DEED. THE $22.40 REPRESENTING RECORDING FEES ON TRUST DEEDS AND THE LOAN BROKERAGE FEE OF $149.00 LIKEWISE WERE DENIED BECAUSE OF LACK OF EVIDENCE THAT SUCH FEES ARE CUSTOMARILY PAID BY THE SELLER IN THE AREA OF JOHNSON CITY, TENNESSEE. WHILE THE RECORD CONTAINS A LETTER FROM THE WILLIAM H. JOHNSON REALTY COMPANY, WHICH SOLD THE RESIDENCE, CERTIFYING THAT THE SELLER PAID SUCH ITEMS IT DOES NOT PURPORT TO SAY THAT SUCH ITEMS ARE CUSTOMARILY PAID BY THE SELLER. WE SEE NO BASIS FOR DISAGREEING WITH THE ADMINISTRATIVE ACTION IN DENYING THE ABOVE ITEMS. SEE B-164197, OCTOBER 24, 1968, B-163203, MARCH 24, 1969, COPIES ENCLOSED. THE DIFFERENCE BETWEEN THE TOTAL OF THE FOREGOING ITEMS, $268.90, AND THE AMOUNT RECLAIMED, $256.65, REPRESENTS A RECORDATION OF RELEASE FEE OF $2 (SALE) AND RECORDING FEES OF $10.25 (PURCHASE) WHICH WERE NOT CLAIMED BUT ALLOWED ON THE ORIGINAL VOUCHER.

AS TO THE EXPENSES FOR WHICH MR. RAHM WAS ALLOWED REIMBURSEMENT IN CONNECTION WITH THE PURCHASE OF A RESIDENCE IN THE ATLANTA, GEORGIA AREA, WE NOTE THAT UNDER THE PROVISIONS OF SECTION 4.2, CIRCULAR NO. A 56, REVISED EFFECTIVE JUNE 26, 1969 (SETTLEMENT HAVING OCCURRED ON JULY 9, 1969), THE ITEM OF $275 FOR LOAN SERVICE CHARGE SHOULD NOT HAVE BEEN ALLOWED. THIS IS SO BECAUSE THE PREVIOUS AUTHORITY FOR ALLOWING A LENDER'S LOAN FEE (ORIGINATION) WAS DELETED FROM CIRCULAR NO. A-56, EFFECTIVE JUNE 26, 1969. SEE B-168407, DECEMBER 22, 1969, AND B 168513, DECEMBER 29, 1969, COPIES ENCLOSED.

ACCORDINGLY, THE VOUCHER SUBMITTED MAY NOT BE PAID AND IT IS BEING RETAINED IN OUR OFFICE. WE ASSUME APPROPRIATE STEPS WILL BE TAKEN TO COLLECT THE $275.