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B-182076 1 (1975-02-05)

handle is hein.gao/gaobadcfv0001 and id is 1 raw text is: 
                 4 1LR
                 /-   p THE COMPTROLLER GENERAL
DECISIOlNl.     . OF THE UNITED STATES
                             WASHINGTON., D.C. 2054
                    NITEDA


FILE:  5-182076


DATE:


IEB  5  1975


MATTER OF: Voucher of Duncan As McDonell


DIGEST:


Where there is no clear local custom in usual sense
of the term as to who pays estate revenue and docu-
mentary stamps on purchase of residence at new
station incident to change of official duty station3
otherwise allowable item may be paid the buyer in
accordance with terms of sales contract wherein
seller and buyer agreed to split costs and the
record shows that in majority of cases handled by
HUD costs of closing are split.


     This claim presents the question whether certain State revenue
stamps are allowable relocation expenses under Federal Property Manage.
ment Regulations (EP4R) 101-7, section 2-6.2(a) of the Federal Travel
Regulations, when the local custm as to whom they are chargeable is in
a state of flux.

     The matter was raised by the voucher of Mr. Duncan A. McDonell for
reLmbursemenut of expenses incident to the purchase of a residence in
Orange Park, Florida, due to a transfer of duty station. The items in
question are klorida revenue stamps and documentary stamps on the note
and deed.  Under the above-mentioned regulation, certain expenses are
reiubursable if they are customarily paid by the purchaser, in this
case, and do not exceed amounts customarily paid.

     The local Housing and Urban Development office advisess

          'Until recently it has been customary for the seller
     to pay all of the closing costs. There is no set rule and
     the determination is made by the terms of the sales con-
     tract.  It appears that the custom is rapidly changing, and
     the seller is able to dictate the terms rather than the
     buyer.  At present, the majority of cases we handle are
     where each pays a part of the cost.'

     In Mr. McDonell's case the sales contract provided that the buyer
would pay $800 towards closing costs (total of $1,614.45) plus prepay
Items and the seller would pay all closing costs in excess of $600.
In view of the changes in custom as to who pays what amount of closing


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