B-172244, JUN 3, 1971
Highlights
THE RECORD DOES NOT INDICATE THAT THE RESIDENCE WAS IN THE NAME OF THE EMPLOYEE OR THAT HE HELD SUCH PROPERTY JOINTLY WITH A MEMBER OF HIS IMMEDIATE FAMILY AS REQUIRED BY SECTION 4.1C OMB CIRCULAR NO. IT APPEARS THAT TITLE WAS TRANSFERRED DIRECTLY FROM THE EXECUTOR OF THE ESTATE OF EMPLOYEE'S MOTHER TO THE PURCHASER. THERE IS NO BASIS FOR AUTHORIZING REIMBURSEMENT OF THE EXPENSES INCURRED BY CLAIMANT. THE DATE OF SETTLEMENT WAS SEPTEMBER 30. IT IS POINTED OUT THAT ORIGINALLY MR. MCFARLAND'S PARENTS OWNED THE PROPERTY AND THAT PRIOR TO THEIR DEATH THEY WERE RECEIVING STATE WELFARE WHICH CAUSED A LIEN TO BE PLACED ON THE PROPERTY. IT IS FURTHER STATED THAT AT THE TIME OF SALE. TITLE WAS TRANSFERRED FROM WILLIAM GRANT MCFARLAND.
B-172244, JUN 3, 1971
CIVILIAN EMPLOYEE - SALE OF RESIDENCE - TITLE NOT IN CLAIMANT'S NAME DECISION DENYING CLAIM FOR REIMBURSEMENT OF $391.20 IN FAVOR OF E. KENNETH MCFARLAND INCIDENT TO THE SALE OF A RESIDENCE AT OGDEN, UTAH, FOLLOWING HIS CHANGE OF OFFICIAL STATION. THE RECORD DOES NOT INDICATE THAT THE RESIDENCE WAS IN THE NAME OF THE EMPLOYEE OR THAT HE HELD SUCH PROPERTY JOINTLY WITH A MEMBER OF HIS IMMEDIATE FAMILY AS REQUIRED BY SECTION 4.1C OMB CIRCULAR NO. A-56. RATHER, IT APPEARS THAT TITLE WAS TRANSFERRED DIRECTLY FROM THE EXECUTOR OF THE ESTATE OF EMPLOYEE'S MOTHER TO THE PURCHASER. THUS, THERE IS NO BASIS FOR AUTHORIZING REIMBURSEMENT OF THE EXPENSES INCURRED BY CLAIMANT.
TO MR. C. H. SCHULTZ:
WE REFER FURTHER TO YOUR LETTER OF MARCH 11, 1971, WITH ENCLOSURES, REQUESTING A DECISION AS TO THE PROPRIETY OF MAKING PAYMENT ON A VOUCHER IN THE AMOUNT OF $391.20 IN FAVOR OF E. KENNETH MCFARLAND, REPRESENTING REIMBURSEMENT OF EXPENSES INCURRED UPON THE SALE OF A RESIDENCE INCIDENT TO HIS CHANGE OF OFFICIAL STATION UNDER THE CIRCUMSTANCES DISCLOSED.
YOU STATE THAT MR. MCFARLAND TRANSFERRED FROM OGDEN, UTAH, TO OAKES, NORTH DAKOTA, EFFECTIVE JUNE 1, 1969. HE SIGNED THE EMPLOYMENT AGREEMENT APRIL 7, 1969, AND ENTERED INTO AN AGREEMENT ON MAY 16, 1969, TO SELL A RESIDENCE AT 2544 VAN BUREN AVENUE, OGDEN, UTAH. THE DATE OF SETTLEMENT WAS SEPTEMBER 30, 1969.
IT IS POINTED OUT THAT ORIGINALLY MR. MCFARLAND'S PARENTS OWNED THE PROPERTY AND THAT PRIOR TO THEIR DEATH THEY WERE RECEIVING STATE WELFARE WHICH CAUSED A LIEN TO BE PLACED ON THE PROPERTY. AFTER THE DEATH OF HIS MOTHER, DIANA B. MCFARLAND, THE EMPLOYEE ENTERED INTO AN AGREEMENT WITH THE STATE OF UTAH, DEPARTMENT OF PUBLIC WELFARE, TO REMOVE THE LIEN BY AGREEING TO PAY $5,960.48 PLUS INTEREST AT THE RATE OF 6 PERCENT.
IT IS FURTHER STATED THAT AT THE TIME OF SALE, TITLE WAS TRANSFERRED FROM WILLIAM GRANT MCFARLAND, AS EXECUTOR OF THE ESTATE OF DIANA B. MCFARLAND TO LARRY K. MCFARLAND, EVEN THOUGH THE EMPLOYEE LIVED IN THE RESIDENCE FROM 1963 UNTIL 1969, WHEN HE TRANSFERRED. IT IS REPORTED THAT HE PAID THE STATE OF UTAH THE AMOUNT OF THE LIEN, PLUS INTEREST. IT IS STATED THAT HE RECEIVED $7,500 IN CASH, PLUS A PROMISSORY NOTE FOR $2,500 FOR THE PROPERTY IN QUESTION FROM LARRY K. MCFARLAND.
THE EMPLOYEE REQUESTS REIMBURSEMENT IN THE AMOUNT OF $391.20, REPRESENTING LEGAL AND RELATED COSTS IN SELLING THE RESIDENCE AT OGDEN, UTAH. THE RECORD INDICATES THAT THESE COSTS REPRESENT ATTORNEY'S FEES IN THE AMOUNT OF $250 FOR TITLE CLEARANCE, LIEN RELEASE, AND TERMINATION OF JOINT TENANCY. ADDITIONAL COST OF $141.20 PAID TO THE FIRST SECURITY BANK, OGDEN, UTAH, REPRESENTS THE COST OF OBTAINING A MORTGAGE LOAN FROM THE BANK BY THE EMPLOYEE'S BROTHER WHO APPARENTLY PURCHASED THE PROPERTY IN QUESTION. THESE COSTS INCLUDED FINANCE CHARGES, TITLE INSURANCE, RECORDING FEES, AND CREDIT REPORT.
A SALES AGREEMENT ENTERED INTO ON MAY 16, 1969, BETWEEN E. KENNETH MCFARLAND, SELLER, AND LARRY K. MCFARLAND, BUYER, DISCLOSES THAT THE SELLER AGREED TO PAY ALL LEGAL AND RELATED COSTS IN CONNECTION WITH THE SALE OF THE PROPERTY AND THAT THE BUYER AGREED TO GET A LOAN FROM THE FIRST SECURITY BANK AND PAY THE SELLER AS STIPULATED IN THE AGREEMENT.
UNDER THE PROVISIONS OF SECTION 4.1C, OFFICE OF MANAGEMENT AND BUDGET CIRCULAR NO. A-56, REVISED JUNE 26, 1969, AN EMPLOYEE IS ENTITLED TO BE REIMBURSED FOR EXPENSES REQUIRED TO BE PAID BY HIM IN CONNECTION WITH THE SALE OF HIS RESIDENCE PROVIDED THAT:
"THE TITLE TO THE RESIDENCE OR DWELLING AT THE OLD OR NEW OFFICIAL STATION, OR THE INTEREST IN A COOPERATIVELY OWNED DWELLING OR IN AN UNEXPIRED LEASE, IS IN THE NAME OF THE EMPLOYEE ALONE, OR IN THE JOINT NAMES OF THE EMPLOYEE AND ONE OR MORE MEMBERS OF HIS IMMEDIATE FAMILY, OR SOLELY IN THE NAME OF ONE OR MORE MEMBERS OF HIS IMMEDIATE FAMILY. *** "
THERE IS NOTHING IN THE RECORD WHICH WOULD INDICATE THAT TITLE IN THE PROPERTY WAS IN THE NAME OF THE EMPLOYEE OR THAT HE HELD SUCH PROPERTY JOINTLY WITH A MEMBER OF HIS IMMEDIATE FAMILY WITHIN THE MEANING OF THE ABOVE CITED SECTION 4.1C OF CIRCULAR NO. A-56. BROTHERS AND SISTERS ARE NOT WITHIN THE DEFINITION OF "IMMEDIATE FAMILY." RATHER, IT IS REPORTED THAT AT THE TIME OF THE SALE, TITLE TO THE PROPERTY WAS TRANSFERRED DIRECTLY FROM THE EXECUTOR OF THE ESTATE TO THE PURCHASER. ON THE RECORD BEFORE US THERE IS NO BASIS FOR AUTHORIZING REIMBURSEMENT OF THE EXPENSES INCURRED BY THE EMPLOYEE.
WE NOTE THAT EVEN IF THE EMPLOYEE ACTUALLY HAD "TITLE" TO THE PROPERTY AT THE TIME OF SETTLEMENT, THE CHARGES INCURRED BY HIS BROTHER, THE PURCHASER, IN OBTAINING A LOAN FROM THE BANK COULD NOT BE REGARDED AS EXPENSES OF THE SELLER WHICH WOULD BE PROPER FOR REIMBURSEMENT. MOREOVER, FINANCE CHARGES ARE NOT REIMBURSABLE UNDER SECTION 4.2D OF CIRCULAR NO. A- 56, REVISED JUNE 26, 1969.
THE VOUCHER AND SUPPORTING PAPERS ARE RETURNED HEREWITH, AND NO PART OF THE VOUCHER MAY BE CERTIFIED FOR PAYMENT.