[Question Concerning Reimbursement of Costs for Real Estate Purchase]

The Air Force requested an advance decision on whether a transferred employee may be reimbursed for the costs incurred in the purchase of a residence at his new duty station even though neither he nor any member of his immediate family acquired title to the residence. GAO noted that: (1) the employee furnished a part of the money used to purchase a residence with a friend; (2) at the time of the purchase, the employee arranged to have the title of the house placed in his friend's name; and (3) 1 month later, the employee married his friend and received joint ownership in the property. GAO has held that the title of purchased property must be in an employee's name alone or in the joint names of the employee and one or more members of his immediate family in order for him to be reimbursed for real estate expenses. GAO found that: (1) it was immaterial that the employee may have furnished some of the money used to purchase the residence or that he acquired joint ownership of the property after he married the titleholder; and (2) neither the employee nor any member of his immediate family acquired title to the residence at the time of purchase. Accordingly, the employee's claim may not be reimbursed.