[Questions Concerning Entitlement to Reimbursement for Expenses Incurred in Connection With Sale of Residence]

A Department of Agriculture employee filed a claim for reimbursement of the necessary costs incurred in refinancing his residence at a former duty station in order to obtain assumable financing for the purchaser. GAO has held that reimbursement of the expenses incurred by an employee in obtaining a new mortgage or a second mortgage on his residence at a former duty station where the mortgage transaction was part of the total financial package essential to the purchase of a residence at a new duty station is allowable. GAO determined that: (1) the costs involved in the financing and refinancing of the old residence in order to facilitate residence transactions may be allowed; (2) reimbursement for a title insurance policy may be allowed where the insurance is purchased primarily for the protection of the lender; and (3) the claim for buyer's title protection should not be allowed. GAO noted that expenses involved in refinancing are reimbursable to the extent that such costs are reasonable and otherwise allowable under Federal Travel Regulations. Accordingly, the claim for real estate expenses was allowed.