Request for Reimbursement of Real Estate Expenses

A Department of the Interior employee appealed a previous decision in which his reimbursement of real estate costs was limited to 50 percent of the total cost involved or to the extent of the interest that the employee and members of his immediate family had in the residence. The employee was transferred to a new duty station in 1978. Upon being transferred, the employee sold his residence at the old duty station and purchased a new residence at his new duty station. The title to the property that was sold was in the names of the employee, his wife, and his parents. Moreover, none of the parents were members of the employee's immediate family. GAO held that the statutory authority for reimbursing an employee for real estate expenses incurred incident to a transfer require that the title to the residence be held in the name of the employee alone, jointly with one or more members of his immediate family, or in the name of one or more members of the immediate family. Thus, reimbursement of real estate costs was limited to 50 percent of the total cost involved. Accordingly, the settlement of the Claims Division was sustained.