Real Estate Claims G..

Real Estate Claims Guidance
Your guide to completing the
DD Form 1705 for the Sale and
Purchase of Residence
Helpful Tips
A civilian employee making a Permanent Change of Duty Station Move may be
authorized to claim for real estate reimbursement for the Sale or Purchase of
their residence. Employees have up to two years to sell or buy their
residence upon arrival at their new duty station.
Note: not all expenses incurred in the sale/purchase are reimbursable!
The real estate reimbursement claim for sale/purchase of a residence cannot
be filed until after the closing and the seller/purchaser has incurred the
expenses. JTR Vol. 2, Chapter 4 does not allow for an advance on real
estate expenses.
Although the form provides a column for sale expenses claimed at the old
address and a column for purchase expenses claimed at the new duty
station, this does not mean you must wait until both are accomplished before
submitting your claim.
To the contrary, it is well advised that you separate the sale and purchase
claims in order to be paid on one while awaiting administrative processing on
the other claim.
What do you need?
Submit the completed DD 1705 (Reimbursement for Real Estate Sale and/or
Purchase Closing Cost Expenses) and two (2) copies after expenses have
been incurred and paid. The following should accompany the DD 1705:
DD Form 1351-2, signed and dated. Do not fill in money amount until
claim is approved by Legal Office. Do not write below the signature line.
Three (3) copies of travel orders, DD Form 1614, including amendments.
Three (3) copies of HUD Settlement Statement. This is the itemized list
of charges for the sale or purchase of a residence and requires the
signatures of both the buyers and the sellers.
Three (3) copies of the sale and/or purchase agreement with the
signatures of both the buyers and the sellers.
Three (3) copies of receipts for any and all expenses claimed that were
paid outside of closing for expenses in excess of $75.
Three (3) copies of the Deed.
If you made a prior claim for a sale or purchase (same residence) and a
change or addition is required, be sure to submit the prior property
settlement documents and approved claim.
Any additional substantiation for claimed expenses that are not listed on
paperwork from your bank or real estate agent.
Additional Items You Will Need
• If this is a purchase, truth in lending statement, finance
charge disclosure statement, and a loan closing
• If this is a sale, please submit mortgage documents, if
you are claiming a pre-payment fee.
• Note: All claims should be filed through the local Air
Force Civilian Personnel Flight (CPF). If your sale or
purchase claim is outside of that area to which the claim
is being filed, the claim will be coordinated to the closest
AF CPF within the state that the property was sold or
purchased for review.
Allowable Expenses – Purchase of Home
The following expenses are typically reimbursable when reasonable in amount and
customarily paid by the buyer in the location where the property is situated:
FHA or VA fees for the loan application
Loan origination fee (generally up to 1% of the loan amount)
Credit report fee
Mortgage and transfer taxes
State revenue stamps
Mortgage title insurance policy paid for by the purchaser for the protection of, and as
required by, the lender (Please note: Normally, any title insurance purchased for the
protection of the buyer is NOT reimbursable.)
Expenses in connection with the construction of a residence that are comparable to
the expenses incurred in purchasing a pre-existing residence
One (1) lender’s appraisal fee
Survey expenses
Recording fees
Document preparation fees
Reasonable attorney’s fees for settlement/closing
Expenses connected with environmental and property inspection fees when required
Non-Reimbursable Expenses – Purchase of Home
The following items are generally NOT reimbursable:
Owner’s title insurance policy, “record title” insurance policy, mortgage insurance or
insurance against loss or damage of property, or any other optional insurance
Tax service fee (charged to buyer to compute and prorate a tax obligation)
Any interest on loans, points, mortgage discounts or rate buy-down fees
Homeowner’s warranty
Property taxes
Operating or maintenance costs
Fees for cashier’s checks
Any fee, cost, charge or expense that is determined to be part of the finance charge
or necessary for the extension of credit to the buyer
Fees or payments associated with any home improvements
VA fund fee
Any expenses paid by the seller on behalf of the buyer
Expenses resulting from the construction of a residence that would not be
reimbursable when purchasing a pre-existing residence
Legal fees that result from a sale that does not go to settlement or closing
Any loss as a result of prices or market conditions at the old or new duty station
Allowable Expenses – Sale of Home
The following expenses are typically reimbursable when reasonable in amount
and are customarily paid by the seller in the locality where the property is
Broker’s fees or realtor commissions
Advertising and selling expenses (newspaper advertisements, bulletin
boards, multiple listing services, etc.) only if the residence is not listed with a
real estate broker
Cost for title search, preparing the abstract, and any legal fees associated
with a title opinion/title insurance policy (when customarily paid by the
Cost of preparing conveyances and other instruments or contracts
Notary fees and recording fees
Cost of surveys and preparing drawings or plats when required for financing
Inspections required by the lender
Transfer taxes
Reasonable attorney fees
Mortgage prepayment charges
Completing DD Form 1705 – Page 1
Page 1 is the easy stuff – It’s all about you and your old or new
Blocks 1- 4 – Your Information – Name, Address, SSN
Blocks 5 -10 – Transfer/Move information – Locations and Dates
Blocks 11-15 Residence Information – Addresses, Dates and Amounts
Blocks 16 and 17 are your certifications for either purchase or sale of
residence – read, sign and date the appropriate blocks.
Now on to Page 2 - this is where documentation and explanation is key.
Reference lines are where amounts can be located on your Purchase
or Sales Agreement – this will be very helpful in preparing Page 2.
Completing Page 2 of DD 1705
Line 21 Sales/Broker’s
Line 21
• Home Sales Only
• Includes fees for listing
when not included in
commission payment
• HUD Lines 700-703
Expenses Itemization Chart
Column 2
Column 1
As you fill out a line on DD Form 1705 you
must itemize each individual expense on the
form titled “Expenses Itemization Chart” in
Columns 1 and 2.
Example: if the amount you filled in on Line
24 of the DD Form 1705 ($600) is the total
of HUD Lines 1102 (Title Search) (i.e. $400)
and 1109 (Lender’s Coverage) (i.e. $200)
from your HUD form, you must do two
entries (lines) on the expenses chart to
itemize the total from Line 24 of the DD
Form 1705.
In this example your first entry on the
Expenses Itemization Chart will list Line 24
for the DD 1705 line number and HUD Line
1102 for the HUD line number. The amount
claimed will be $400.
Your second entry on the Expenses
Itemization Chart would list Line 24 for the
DD 1705 line number and HUD Line 1109
for the HUD line number. The amount
claimed will be $200.
Failure to itemize expenses will result in
your package being returned without
Line 22: Advertising
Line 22
• Only when you
sell the home
• Sale without use
of broker or agent.
• Need receipts
• Advertising and
Brokerage fees
can’t both be
• Not listed on
closing statement
Line 23
Line 23: Appraisal
• Sale Only
• Not Often Charged
• HUD Line 803
Line 24: Legal and
Related Costs
• Settlement/Closing Fee
– HUD Line 1101
• Abstract/Title Search –
HUD Line 1102
Line 24
• Title Exam – HUD Line
• Title insurance Binder –
HUD Line 1104
• Document Preparation –
HUD Line 1105
• Deed/Mortgage
Recording – HUD Line
• Survey – HUD Line
Reminder: make sure you itemize each expense13
being claimed on the Expenses Itemization Form!
Line 25a: Prepayment
• Sale Only
• When seller is required
to pay penalty when
loan refinanced
Line 25a
• Separate receipt
Line 25b: Lender’s
• Purchase Only
• Only when required
by lender
Line 25b
• HUD Line 803
Line 25c: FHA/VA
Application Fee
• When required by
Line 25c
• Separate receipt
Line 25d:
Certification Fee
• Structural
Line 25d
• Lender’s Inspection
• Only when required by
lender or for new
• HUD Lines 805 and
Line 25e: Credit
Report Fee
• Only if required by
Mortgage, Lender,
FHA or VA.
Line 25e
• HUD Line 804
Line 25f: Mortgage Title Policy
• Amount for Mortgage or
Lender’s Title Insurance Only
(HUD Line 1109)
• Not for Owner’s Coverage
(HUD Line 1110)
• If only HUD Line 1108 is filled
in and HUD Line 1109 and 1110
are blank, you must get
substantiation from lender for
how much of HUD Line 1108
was coverage for the Lender or
your package will be
Line 25f
• Mortgage Insurance on Life of
Borrower and/or Owner’s Title
Insurance are NOT
• HUD Lines 1108, 1109, and
Line 25g: Escrow
Agent's Fee
• Amount paid to
escrow agent or other
agent used to close
real estate transaction
• HUD Line 1101
Line 25g
Line 25h: Revenue
• City/Parish/State Tax
• Usually one or the other rarely both
Line 25h
• HUD Lines 1202 and
Line 25i: Sales or
Transfer Tax;
Mortgage Tax
• Not often charged
Line 25i
Line 26: Other Incidental
• Loan Origination Fee, etc.
• Remember to itemize on
expenses itemization
• Must be reasonable and
• If you are submitting a
reimbursement for a sale,
you must provide proof that
each expense claimed is
reasonable and customary
for that area (i.e. a letter
from a title company)
Line 26