Board of Contract Appeals General Services Administration Washington, D.C. 20405 _____________ August 3, 1998 _____________ GSBCA 14559-RELO In the Matter of ROBERT B. STROM Robert B. Strom, Gore, VA, Claimant. Vivian A. Davis, Senior Attorney, Real Estate Division, Department of the Army, Savannah District, Corps of Engineers, Savannah, GA, appearing for Department of Defense. VERGILIO, Board Judge. The claimant seeks to recover those costs incurred in the sale of his residence which the agency disallowed. The record does not demonstrate that in the area of the sale it was customary for the seller to incur any of the disallowed costs. Accordingly, the claimant is not entitled to the reimbursement sought. With a reporting date in late October 1997, the claimant, Robert B. Strom, as a civilian employee of the Department of Defense, changed duty stations. In connection with the relocation, the agency authorized the claimant to be reimbursed for the sale of his residence at his old duty station in Valdosta, Georgia. The claimant sold the residence for $27,250. He submitted a claim for $3414.30 in connection with the sale. The agency reimbursed the claimant $1934.30. It disallowed reimbursement in full for appraisal ($275), title examination ($350), title insurance ($50), survey ($250), mortgage title policy ($120), and title retrieval ($325), because it concluded that such were not items customarily paid by the seller in the given area. The agency now states that title retrieval costs (those costs incurred in retrieving the title document from storage) were properly disallowed because they were not part of the real estate transaction. Of requested recording fees, the agency allowed $20 (for releases) and disallowed $38 (for a deed and a mortgage). Of requested tax revenue stamp costs, the agency allowed $27.30 (for the deed) and disallowed $72 (for a mortgage). It concluded that these portions of allowances reflect customary seller expenses. The agency contacted lending institutions before it reached its conclusion that a seller did not customarily incur the costs in question in the area. The claimant seeks reimbursement of $1480, the sum of the disallowed amounts. Statute permits the Government to pay an employee expenses incurred in the sale of a residence at the old duty station. However, the reimbursement for brokerage fees and other expenses may not exceed those customarily charged in the locality where the residence is located. 5 U.S.C. 5724a(d)(4) (Supp. II 1996). Reimbursement under the statutory subsection may not exceed ten percent of the sale price of the residence. Id. 5724a(d)(7)(A). In support of his position, the claimant references a letter from the owner of the realty company which handled the sale of the property, which states in relevant part: "Please be advised that the costs indicated below are usual and customary closing costs relative to the sale of your personal house located here in Valdosta, Georgia." With the exception of title retrieval costs, it is not here disputed that the costs are usual and customary. What is at issue is whether or not the costs are customarily paid by the seller. The statement does not support the conclusion advanced by the claimant that a seller customarily would pay the costs. The claimant also relies upon a letter from a mortgage loan assistant at a bank and trust company at the old duty station, which states: Please be advised that most closing costs associated with the buying and selling of a home in the Valdosta/Lowndes County area are completely negotiable. The pest inspection, transfer tax, doc prep for the warranty deed and deed prep fee are, by law, paid by the seller on a conventional loan. However, all other closing costs are negotiated by both parties and can be paid by either the buyer or seller. It is neither customary for the buyer nor customary for the seller to bear these expenses but completely negotiable. The record lacks an affirmative statement that a seller customarily would have incurred any of the costs in question, including those of title retrieval. This situation differs from those instances in which the Board found that a customary practice existed. E.g., Steven D. Ward, GSBCA 14306-RELO (June 11, 1998). The claimant is not entitled to reimbursement. ____________________________ JOSEPH A. VERGILIO Board Judge