B-171619, FEB 9, 1971
Highlights
OF THE HANDWRITTEN STATEMENT "SELLER TO PAY CLOSING COST" SUPPORTS THE VIEW THAT THE CHARGE FOR WHICH REIMBURSEMENT IS SOUGHT IS CUSTOMARILY PAID BY THE BUYER AND THEREFORE NOT REIMBURSABLE UNDER THE OPERATIVE PROVISIONS OF BOB CIRCULAR NO. ACCARDI: REFERENCE IS MADE TO YOUR LETTER OF DECEMBER 15. KMECZA WAS TRANSFERRED FOR PERMANENT DUTY FROM ATLANTA. AMONG THESE WAS A CHARGE OF $512 WHICH HE PAID AS AN "INITIAL SERVICE CHARGE" FOR THE SECURING OF A LOAN BY THE BUYER OF THE RESIDENCE. THIS SUM WAS DEDUCTED FROM THE PAYMENT OF MR. THE "INITIAL SERVICE CHARGE" IS DESCRIBED BY THE LENDER AS CONSISTING OF: " *** THE COST OF PUTTING THE LOAN ON OUR BOOKS. CHARGES OF THE NATURE HEREIN INVOLVED ARE REIMBURSABLE ONLY TO THE EXTENT THAT THEY ARE CUSTOMARILY PAID BY THE SELLER IN THE AREA OF THE OLD OFFICIAL STATION.
B-171619, FEB 9, 1971
TRANSFERS - INCIDENTAL EXPENSES DENIAL OF CLAIM OF NICHOLAS S. KMECZA FOR $315 PAID AS A SERVICE CHARGE IN SECURING A LOAN FOR THE BUYER OF HIS HOME AT HIS OLD DUTY STATION ATLANTA, GEORGIA, INCIDENT TO HIS TRANSFER TO ASHEVILLE, N.C. THE INCLUSION, UNDER THE HEADING "SPECIAL STIPULATIONS", OF THE HANDWRITTEN STATEMENT "SELLER TO PAY CLOSING COST" SUPPORTS THE VIEW THAT THE CHARGE FOR WHICH REIMBURSEMENT IS SOUGHT IS CUSTOMARILY PAID BY THE BUYER AND THEREFORE NOT REIMBURSABLE UNDER THE OPERATIVE PROVISIONS OF BOB CIRCULAR NO. A-56.
TO MR. R. W. ACCARDI:
REFERENCE IS MADE TO YOUR LETTER OF DECEMBER 15, 1970, TRANSMITTING A COPY OF A VOUCHER IN FAVOR OF MR. NICHOLAS S. KMECZA WHEREIN HE MAKES RECLAIM OF CERTAIN REAL ESTATE (SELLING) EXPENSES IN CONNECTION WITH A TRANSFER OF OFFICIAL STATION.
MR. KMECZA WAS TRANSFERRED FOR PERMANENT DUTY FROM ATLANTA, GEORGIA, TO ASHEVILLE, NORTH CAROLINA, TO REPORT FOR DUTY ON APRIL 20, 1970. AS AN INCIDENT TO SUCH TRANSFER HE SOLD HIS RESIDENCE IN ATLANTA, THEREBY INCURRING VARIOUS EXPENSES INCIDENT THERETO FOR WHICH HE SOUGHT REIMBURSEMENT. AMONG THESE WAS A CHARGE OF $512 WHICH HE PAID AS AN "INITIAL SERVICE CHARGE" FOR THE SECURING OF A LOAN BY THE BUYER OF THE RESIDENCE. THIS SUM WAS DEDUCTED FROM THE PAYMENT OF MR. KMECZA'S ORIGINAL CLAIM. THE "INITIAL SERVICE CHARGE" IS DESCRIBED BY THE LENDER AS CONSISTING OF:
" *** THE COST OF PUTTING THE LOAN ON OUR BOOKS, INVOLVING APPRAISAL FEES, CREDIT REPORT, PREPARATION FOR THE CLOSING AND SERVICING OF THE LOAN. *** " MR. KMECZA NOW RECLAIMS THE SUM OF $315, REPRESENTING A PORTION OF THE $512 SO DEDUCTED.
SECTION 4.2(D) OF BUREAU OF THE BUDGET CIRCULAR NO. A-56, AS REVISED JUNE 26, 1969, PROVIDES THAT, IN THE CASE OF A SALE OF RESIDENCE, CHARGES OF THE NATURE HEREIN INVOLVED ARE REIMBURSABLE ONLY TO THE EXTENT THAT THEY ARE CUSTOMARILY PAID BY THE SELLER IN THE AREA OF THE OLD OFFICIAL STATION. WHEN THE COSTS IN QUESTION ARE NORMALLY ASSOCIATED WITH THE BUYER, CLAIMANT BEARS THE BURDEN OF SHOWING THAT, IN THE AREA WHERE THE RESIDENCE IS LOCATED, PAYMENT IS CUSTOMARILY MADE BY THE SELLER. SEE B- 164181, JULY 22, 1968; B-167924, OCTOBER 14, 1969. IT APPEARS FROM THE RECORD THAT THE CHARGES FOR WHICH REIMBURSEMENT IS PRESENTLY SOUGHT ARE CUSTOMARILY PAID BY THE BUYER IN THE ATLANTA AREA. THIS CONCLUSION IS SUPPORTED NOT ONLY BY YOUR LETTER OF DECEMBER 15, 1970, BUT ALSO BY THE HANDWRITTEN INCLUSION OF THE STATEMENT "SELLER TO PAY CLOSING COST" IN THE SALES AGREEMENT, UNDER THE HEADING "SPECIAL STIPULATIONS," INDICATING THAT THESE COSTS ARE CUSTOMARILY THOSE OF THE BUYER. SEE B-164181 ABOVE. FURTHERMORE, EVEN IF REIMBURSEMENT WERE NOT OTHERWISE PRECLUDED THERE WOULD BE NO AUTHORITY FOR ALLOWANCE OF PORTIONS OF THE SUBJECT ITEM WHICH ARE CLASSIFIED AS FINANCE CHARGES UNDER SECTION 106 OF THE TRUTH IN LENDING ACT, TITLE I, PUBLIC LAW 90-321. SEE 169475, MAY 14, 1970.
ACCORDINGLY, THE CLAIM MAY NOT BE ALLOWED.