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Real Estate Expenses and Owner's Title Policy

B-193750 Aug 28, 1979
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Highlights

Incident to his employment with the Veterans Administration (VA), an employee was transferred from New Orleans, Louisiana, to Indianapolis, Indiana, and purchased a residence at his new duty station. Although he was reimbursed the cost of a mortgage title insurance policy, his claim for reimbursement for an owner's title policy was disallowed by the VA and GAO. The employee requested reconsideration of the settlement disallowing his claim for an owner's title insurance policy. Arguing that regulations should be overruled in order to permit allowance of his claim, the employee cited a brochure published by the Department of Housing and Urban Development which cautions home buyers to obtain an owner's title policy for their protection. An Executive Order, however, authorizes the Administrator of the General Services Administration (GSA) to prescribe the regulations necessary to administer the law governing relocation allowances and entitlements for Federal employees. As distinguished from a mortgage title policy, the cost of which is reimbursable, an owner's title policy is one that the purchaser of a residence obtains for his own protection. It was held that the GSA regulations are statutory regulations having the effect and force of law. Accordingly, the disallowance of the employee's claim was sustained. It was suggested that the employee address his concern to GSA regarding the fact that the regulations appear to him to be restrictive.

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