Skip to main content

B-166801, DEC. 3, 1970

B-166801 Dec 03, 1970
Jump To:
Skip to Highlights

Highlights

WHERE CLAIMANT GIVES ADEQUATE INFORMATION SHOWING THAT SELLER DID NOT PAY OR SHARE IN THE EXPENSE OF A TITLE SEARCH AND THAT IT WAS CUSTOMARY IN THE AERA FOR THE PURCHASER TO PAY FOR SEARCH. CLAIM FOR FEE WILL BE ALLOWED. IN THAT DECISION WE POINTED OUT THAT TO ESTABLISH YOUR ENTITLEMENT TO THE FEE IN QUESTION IT WOULD BE NECESSARY FOR YOU TO SHOW THAT THE SELLER DID NOT PAY FOR OR SHARE IN THE EXPENSE OF A TITLE SEARCH OR OPINION AND THAT UNDER SUCH CIRCUMSTANCES IT WAS CUSTOMARY IN THE AREA FOR THE PURCHASER TO OBTAIN AND PAY FOR THE TITLE SEARCH OR OPINION. A CERTIFICATE IS OBTAINED FROM THE COUNTY COURT SHOWING RECORDING OF LIENS. FROM SUCH CERTIFICATE AN ATTORNEY RENDERS AN OPINION AS TO WHETHER TITLE IS CLEAR AND IF SO NO OTHER TITLE SEARCH IS MADE.

View Decision

B-166801, DEC. 3, 1970

TRANSFERS - ATTORNEY'S FEE DECISION GRANTING CLAIM FOR A $95 ATTORNEY FEE INCURRED INCIDENT TO TRANSFER TO ILLINOIS. WHERE CLAIMANT GIVES ADEQUATE INFORMATION SHOWING THAT SELLER DID NOT PAY OR SHARE IN THE EXPENSE OF A TITLE SEARCH AND THAT IT WAS CUSTOMARY IN THE AERA FOR THE PURCHASER TO PAY FOR SEARCH, CLAIM FOR FEE WILL BE ALLOWED.

TO MR. MICHAEL B. MCNAMEE:

YOUR LETTER OF OCTOBER 13, 1970, AGAIN REQUESTS THAT RECONSIDERATION BE GIVEN YOUR RECLAIM FOR A $95 ATTORNEY FEE DISALLOWED BY OUR CLAIMS DIVISION SETTLEMENT DATED APRIL 20, 1970, AND AFFIRMED BY OUR DECISION B- 166801, OCTOBER 6, 1970, TO YOU.

IN THAT DECISION WE POINTED OUT THAT TO ESTABLISH YOUR ENTITLEMENT TO THE FEE IN QUESTION IT WOULD BE NECESSARY FOR YOU TO SHOW THAT THE SELLER DID NOT PAY FOR OR SHARE IN THE EXPENSE OF A TITLE SEARCH OR OPINION AND THAT UNDER SUCH CIRCUMSTANCES IT WAS CUSTOMARY IN THE AREA FOR THE PURCHASER TO OBTAIN AND PAY FOR THE TITLE SEARCH OR OPINION. YOU VISITED OUR OFFICE ON OCTOBER 9, 1970, TO DISCUSS THIS MATTER. AT THAT TIME YOU POINTED OUT THAT IN THE STATE OF ILLINOIS, WHERE THE TRANSACTION TOOK PLACE, A CERTIFICATE IS OBTAINED FROM THE COUNTY COURT SHOWING RECORDING OF LIENS, INCUMBRANCES, DEEDS, ETC., ON REAL ESTATE. FROM SUCH CERTIFICATE AN ATTORNEY RENDERS AN OPINION AS TO WHETHER TITLE IS CLEAR AND IF SO NO OTHER TITLE SEARCH IS MADE. AFTER YOUR VISIT WE SECURED INFORMALLY FROM THE DEPARTMENT OF LABOR COPIES OF THE MORTGAGE CLOSING AND THE CLOSING STATEMENTS ON THE REAL ESTATE TRANSACTION INVOLVED. THE MORTGAGE CLOSING STATEMENT SHOWS AS A SELLER'S COST AN OWNER'S TITLE POLICY IN THE AMOUNT OF $81.75. THE CLOSING STATEMENT SHOWS AS A SELLER'S SHARE OF THE TITLE EXPENSES THE AMOUNT OF $81.75. THUS, WE WERE CONCERNED THEREFROM THAT THE SELLER HAD PARTICIPATED IN THE TITLE EXPENSES INVOLVED.

HOWEVER, IN YOUR OCTOBER 13 LETTER AND AGAIN ON NOVEMBER 10, 1970, IN A TELEPHONE DISCUSSION OF THIS MATTER YOU STATED THAT NO OTHER EXPENSES WERE PAID BY THE SELLER FOR A TITLE SEARCH OVER AND ABOVE THE TITLE OPINION THAT YOU SECURED FROM YOUR ATTORNEY AND THAT THE EXPENDITURE BY THE SELLER REFERRED TO ABOVE REPRESENTS THE PURCHASE OF A POLICY OF INSURANCE FOR THE PURPOSE OF GUARANTEEING TO THE PURCHASER THAT NO FRAUD EXISTS WITH RESPECT TO THE TITLE OF THE REAL ESTATE INVOLVED, AND THAT SUCH PRACTICE IS CUSTOMARY IN THE STATE OF ILLINOIS.

IN VIEW OF THE FOREGOING EXPLANATION WE HAVE INSTRUCTED OUR CLAIMS DIVISION TO ALLOW YOUR RECLAIM OF $95 REPRESENTING A TITLE OPINION BY YOUR ATTORNEY COVERING THE ONLY TITLE EXPENSES INVOLVED IN THE TRANSACTION. SETTLEMENT WILL BE MADE WITH YOU THEREON AT THE EARLIEST POSSIBLE DATE.

GAO Contacts

Office of Public Affairs