Source: https://www.gsa.gov/policy-regulations/regulations/federal-travel-regulation-ftr/i1183555
Timestamp: 2020-02-27 23:30:49
Document Index: 541814430

Matched Legal Cases: ['§302', '§302', '§302', '§302', '§302', '§302', 'art 302', '§302', '§302']

Subchapter E - Residence Transaction Allowances | GSA
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When your unexpired lease (including month to month) is for residence quarters at your old official station, you may be reimbursed for settlement expenses for an unexpired lease, including but not limited to broker’s fees for obtaining a sublease or charges for advertising if:
(d) The broker’s fees or advertising charges are not in excess of those customarily charged for comparable services in that locality.
(v) The accommodation party’s name is on the title.
(5) You must provide suitable documentation to your agency that all conditions in (e)(4) of this section are met.
An accommodation party is an individual who signs an employee’s financing agreement (e.g., a mortgage) to lend his/her name (i.e., credit) to the arrangement.
(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;
(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;
(1) Have not been included in other residence transaction fees (i.e., brokers’ fees or real estate agent fees);
(1) Have not been included in other related transaction costs (i.e., broker’s fees or real estate agency fees); and
(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 §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;
(6) Other fees and charges similar in nature to those listed in §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;
(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;
(b) Is customarily charged in the locality where the residence is located
(c) Owner’s title insurance policy, “record title” insurance policy, mortgage insurance or insurance against loss or damage of property and optional insurance paid for by you in connection with the purchase of a residence for your protection;
(b) Follow your agency’s procedures and submit appropriate voucher(s) along with any claim applications that your agency may require with appropriate documents specified in §302-11.302.
(b) Employees assigned under the Government Employee’s Training Act (5 U.S.C. 4109).
(a) Determine who will authorize and approve residence transactions expenses on the employee’s travel authorization;
The hiring agency in the locality of the employee’s old official station must review and approve the employee’s application when the employee transfers between agencies, unless the hiring agency does not have an appropriate installation there. In that case, the losing agency at the old official station must review and approve the expenses.
To administer an employee’s claim:
(1) Review the employee’s claim to determine whether the expenses claimed are reasonable in amount and customarily paid by the buyer/seller in the locality where the property is located;
(2) Disallow any portion of the employee’s claim that is inflated or are higher than normal for similar services in the locality;
Note to §302-11.406 : You must not pay the expenses listed in §302-11.202 or §302-11.304.
(b) Employee’s residence transactions are reasonably related to his/her transfer of official station.
The maximum amount that you may reimburse for the sale or purchase of an employee’s residence is:
(a) Ten percent of the actual sale price for the sale of the employee’s residence at the old official station; and
A “homesale program” is a program offered by an agency through a contractual arrangement with a relocation services company. The relocation services company purchases a transferred employee’s residence at fair market (appraised) value and then independently markets and sells the residence.
The purpose of a home marketing incentive payment is to reduce the Government’s relocation costs by encouraging transferred employees to participate in their employing agency’s homesale program to independently and aggressively market, and find a bona fide buyer for their residence. This significantly reduces the fees/expenses their agencies must pay to relocation services companies and effectively lowers the cost of such programs.
No, your agency determines when it is in the Government’s interest to offer you a home marketing incentive.
(a) You enter your residence in your agency’s homesale program;
(b) Employee’s efforts in marketing the residence. The purpose of a home marketing incentive payment program is to encourage a transferred employee who participates in a homesale program to independently and aggressively market his/her residence and find a bona fide buyer.
“Property management services” are programs provided by private companies for a fee, which help an employee to manage his/her residence at the old official station as a rental property. These services typically include, but are not limited to, obtaining a tenant, negotiating the lease, inspecting the property regularly, managing repairs and maintenance, enforcing lease terms, collecting the rent, paying the mortgage and other carrying expenses from rental proceeds and/or funds of the employee, and accounting for the transactions and providing periodic reports to the employee.
(a) Reduce overall Government relocation costs by using the property management services allowance in place of allowances for the sale of the employee’s residence; and
(b) You and/or a member(s) of your immediate family hold(s) title to a residence which you are eligible to sell at Government expense under part 302-12 of this chapter.
(b) Payment for sale of your residence at Government expense is offset in accordance with your agency’s policy established under §302-15.70(d).
Note to §302-5.13: You may wish to consult with a tax advisor to determine whether you will incur any additional tax liability, unrelated to your agency’s payment of your property management expenses, as a result of maintaining your residence as a rental property.
(c) Who will determine, for relocations to official duty stations in the United States, whether payment for property management services is more advantageous and cost effective than sale of an employee’s residence at Government expense;
(e) How you will offset expenses you have paid for property management services against payable expenses for sale of the employee’s residence when an eligible employee who elected payment for property management services later changes his/her mind and elects instead to sell his/her residence at Government expense.