[Code of Federal Regulations]

[Title 41, Volume 4]

[Revised as of July 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 41CFR302-11.200]



[Page 188-189]

 

           TITLE 41--PUBLIC CONTRACTS AND PROPERTY MANAGEMENT

 

                   CHAPTER 302--RELOCATION ALLOWANCES

 

PART 302-11_ALLOWANCES FOR EXPENSES INCURRED IN CONNECTION WITH RESIDENCE 

TRANSACTIONS--Table of Contents

 

                     Subpart C_Reimbursable Expenses

 

Sec.  302-11.200  What residence transaction expenses will my agency pay?





    Provided that they are customarily paid by the seller of a residence 

at the old official station or by the purchaser of a residence at the 

new official station, your agency will pay the following expenses:

    (a) Your broker's fee or real estate commission that you pay in the 

sale of your residence at the last official station, not to exceed the 

rates that are generally charged in the locality of your old official 

station;

    (b) The customary cost for an appraisal;



[[Page 189]]



    (c) The costs of newspaper, bulletin board, multiple-listing 

services, and other advertising for sale of the residence at your old 

official station that is not included in the broker's fee or the real 

estate agent's commission;

    (d) The cost of a title insurance policy, costs of preparing 

conveyances, other instruments, and contracts and related notary fees 

and recording fees; cost of making surveys, preparing drawings or plats 

when required for legal or financing purposes; and similar expenses 

incurred for selling your residence to the extent such costs:

    (1) Have not been included in other residence transaction fees 

(i.e., brokers' fees or real estate agent fees);

    (2) Do not exceed the charges, for such expenses, that are normally 

charged in the locality of your residence;

    (3) Are usually furnished by the seller;

    (e) The costs of searching title, preparing abstracts, and the legal 

fees for a title opinion to the extent such costs:

    (1) Have not been included in other related transaction costs (i.e., 

broker's fees or real estate agency fees); and

    (2) Do not exceed the charges, for such expenses, that are 

customarily charged in the locality of your residence

    (f) The following ``other'' miscellaneous expenses in connection 

with the sale and/or purchase of your residence, provided they are 

normally paid by the seller or the purchaser in the locality of the 

residence, to the extent that they do not exceed specifically stated 

limitations, or if not specifically stated, the amounts customarily paid 

in the locality of the residence:

    (1) FHA or VA fees for the loan application;

    (2) Loan origination fees and similar charges such as loan 

assumption fees, loan transfer fees or other similar charges not to 

exceed 1 percent of the loan amount without itemization of the lender's 

administrative charges (unless requirements in Sec.  302-11.201 are 

met), if the charges are assessed in lieu of a loan origination fee and 

reflects charges for services similar to those covered by a loan 

origination fee;

    (3) Cost of preparing credit reports;

    (4) Mortgage and transfer taxes;

    (5) State revenue stamps;

    (6) Other fees and charges similar in nature to those listed in 

paragraphs (f)(1) through (f)(5) of this section, unless specifically 

prohibited in Sec.  302-11.202;

    (7) Charge for prepayment of a mortgage or other security instrument 

in connection with the sale of the residence at the old official station 

to the extent the terms in the mortgage or other security instrument 

provide for this charge. This prepayment penalty is also reimbursable 

when the mortgage or other security instrument does not specifically 

provide for prepayment, provided this penalty is customarily charged by 

the lender, but in that case the reimbursement may not exceed 3 months' 

interest on the loan balance;

    (8) Mortgage title insurance policy, paid by you, on a residence you 

purchased for the protection of, and required by, the lender;

    (9) Owner's title insurance policy, provided it is a prerequisite to 

financing or the transfer of the property; or if the cost of the owner's 

title insurance policy is inseparable from the cost of other insurance 

which is a prerequisite;

    (10) Expenses in connection with construction of a residence, which 

are comparable to expenses that are reimbursable in connection with the 

purchase of an existing residence;

    (11) Expenses in connection with environmental testing and property 

inspection fees when required by Federal, State, or local law; or by the 

lender as a precondition to sale or purchase; and

    (12) Other expenses of sale and purchase made for required services 

that are customarily paid by the seller of a residence at the old 

official station or if customarily paid by the purchaser of a residence 

at the new official station.