Reimbursement of Attorney Fees on Sale of Residence

A decision was requested as to whether the reimbursement of attorney fees incident to the sale of a residence is limited by what is customary in the normal transaction, or whether the employee's particular circumstances may be taken into consideration. An employee sold his residence in connection with a transfer. A property survey showed that a certain structure on the property was encroaching on an adjacent lot. In order to close the sale without removing the structure, an attorney was hired to negotiate with the purchasers and the owner of the adjacent lot. The encroachment caused the purchasers to require changes in the sales contract. Extensive redrafting was necessary which contributed to the increase of the attorney's fees. In addition, the employee sold his residence under a land sale contract. Thus, the question was whether attorney fees incurred incident to a land sale contract complicated by an encroachment problem may be reimbursed. Attorney fees incurred incident to land sale contracts are eligible for reimbursement. Likewise, reimbursement is permitted to clear the title where a clear title is required by the sales contract or local custom. The general rule regarding contracts for the sale of real estate is that, in absence of any particular agreement or stipulation, the purchaser is entitled to have the walls of the building upon the land which he has contract to purchase stand completely on the land conveyed. Where the building encroaches to a substantial extent upon adjoining premises, the title to the land to be conveyed is unmarketable. GAO held that it was necessary for the claimant to incur the attorney fees in question and that the fees were within the customary range of charges for the services rendered. Accordingly, the voucher was to be paid if otherwise proper.