Skip to main content

Request for Reimbursement of Real Estate Expenses

B-202297 Jul 24, 1981
Jump To:
Skip to Highlights

Highlights

An advance decision was requested regarding a Department of Energy employee's claim for an initial termite inspection fee paid in connection with an unconsummated mortgage loan and for costs associated with water supply inspection and treatment. The employee incurred two termite inspection fees in connection with the sale of his residence. The first certification was required by the lending company that initially made a loan commitment to the purchaser of his former residence. The second certification was required as a result of that lending institution's subsequent bankruptcy and a requirement by the new lender for a current termite inspection. GAO has held that the cost of a termite inspection is reimbursable if customarily paid by the seller as a condition to the sale of his residence. Since a termite inspection was required by the terms of the contract for sale and by the lender, the certifying officer correctly reimbursed the employee for termite certification charged to his account at the time of settlement. GAO found that the initial termite inspection required for the buyer of the residence to obtain a loan which was subsequently canceled was not incurred incident to the completed sale of the employee's residence and was not reimbursable. The costs claimed by the employee were not required for reimbursable inspections but for correcting deficiencies in the water supply. Reimbursement of costs associated with home maintenance is precluded by Federal regulations. Accordingly, the claim was disallowed.

Downloads

GAO Contacts

Office of Public Affairs