[Question Concerning Reimbursement for Legal Fees]

The Department of Agriculture (USDA) requested a decision as to whether it may reimburse a transferred employee for legal fees and expenses he incurred in transferring ownership of his residence at his old duty station to a state agency. USDA disallowed the claim because foreclosure costs are not reimbursable expenses. GAO found that: (1) the employee conveyed the title of his former residence for $10 and was released from his mortgage contract; (2) there was no foreclosure or other litigation involved in the transaction; (3) there are no statutory restrictions requiring an open-market real estate sale; and (4) Federal Travel Regulations provide for reimbursement of a transferred employee's legal expenses, other than litigation fees, associated with the sale of a former residence. Accordingly, the employee may be reimbursed for the full amount claimed if the fees and expenses were within the customary range.