§2326 — Title 42 The Public Health and Welfare | U.S. Code

Summary

A buyer who paid for improvements can apply to have the government’s sales price lowered by the amount those improvements raised the government’s share of the property’s market value. For commercial property, a federal commission will set that credit using the required appraisal, and the credit is cut if the lessee was already paid for the improvements. A person living in a single-family or duplex house gets the same credit when buying that house under a priority purchase right. The value of improvements is set by the appraisal rules. Buyers who buy under certain purchase rules and refuse the available indemnity protections get an extra 10% off the appraised value, in addition to other deductions.

Title 42, §2326

The Public Health and Welfare — Source: USLM XML via OLRC

(a)In addition to any other deduction which may be permitted from the sales price for property, there shall, upon application by the prospective purchaser, be deducted the amount by which the current fair market value of the Government’s interest in the premises is enhanced as a result of improvements to the premises made by, or at the expense of, the prospective purchaser: Provided, That, with reference to commercial property, the improvement credit allowed shall be the value of the enhancement of the Government’s interest in the property, as determined by the Commission on the basis of the appraisal provided for under section 2322 of this title: Provided further, That such credit shall be reduced to the extent that lessee has been previously compensated therefor, as determined by the Commission, under the terms of the lease or otherwise.

(b)An occupant of a single family or duplex house shall, upon application therefor, be entitled to a credit, against the purchase price of any residential property purchased through the exercise of a priority right established under the provisions of section 2332 of this title, for the amount by which the current fair market value of the Government’s interest in the single family or duplex house of which he was an occupant is enhanced as a result of improvements to the premises of such single family or duplex house made by, or at the expense of, such occupant.

(c)The value of the improvements as specified in subsections (a) and (b) shall be determined in accordance with the provisions of section 2322 of this title.

(d)Persons purchasing property pursuant to the provisions of section 2342 of this title, who do not desire to avail themselves of the indemnity provisions contained in sections 2363 to 2366 of this title, shall be entitled to an additional deduction of 10 per centum of the appraised value of the property in addition to any other deduction set forth in this section.

Notes & Related Subsidiaries

Editorial Notes

Amendments

1962—Subsec. (b). Pub. L. 87–719 substituted authorization of a credit for improvements by occupant of single family or duplex house for such improvements by junior occupant of duplex house. 1956—Subsec. (a). Act July 25, 1956, authorized an improvement credit for commercial property.

Statutory Notes and Related Subsidiaries

Transfer of Functions

Atomic Energy Commission abolished and functions transferred by section 5814 and 5841 of this title. See also

Transfer of Functions

notes set out under those sections.

§2326 Deductions From Sales Price

Summary

Title 42, §2326

Notes & Related Subsidiaries

Editorial Notes

Amendments

Statutory Notes and Related Subsidiaries

Transfer of Functions

Transfer of Functions

Citations & Metadata