Title 42, The Public Health and WelfareRelease 119-102

§4653 Expenses Incidental to Transfer of Title to United States

Title 42 › CHAPTER 61 — UNIFORM RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION POLICIES FOR FEDERAL AND FEDERALLY ASSISTED PROGRAMS › SUBCHAPTER III — UNIFORM REAL PROPERTY ACQUISITION POLICY › § 4653

Last updated Aug 21, 2026|Official source

Summary

The head of a Federal agency must, as soon as possible after the agency pays the purchase price or deposits money in court to satisfy a condemnation award—whichever happens first—pay back the owner, to the extent the agency head thinks is fair and reasonable, for certain necessary expenses. Those expenses include recording fees, transfer taxes and similar costs to transfer the property to the United States; penalty charges for prepaying a valid recorded mortgage that was on the property; and the portion of property taxes already paid that cover time after the government gets title or possession, whichever comes first.

Full Legal Text

Title 42, §4653

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

The head of a Federal agency, as soon as practicable after the date of payment of the purchase price or the date of deposit in court of funds to satisfy the award of compensation in a condemnation proceeding to acquire real property, whichever is the earlier, shall reimburse the owner, to the extent the head of such agency deems fair and reasonable, for expenses he necessarily incurred for— (1)
(2)penalty costs for prepayment of any preexisting recorded mortgage entered into in good faith encumbering such real property; and
(3)the pro rata portion of real property taxes paid which are allocable to a period subsequent to the date of vesting title in the United States, or the effective date of possession of such real property by the United States, whichever is the earlier.

Reference

Citations & Metadata

Citation

42 U.S.C. § 4653

Title 42, The Public Health and Welfare

Last Updated

Aug 21, 2026

Release point: 119-102