Entitlement to Reimbursement of Real Estate Expenses
Highlights
A decision was requested as to the propriety of reimbursing a Federal employee for real estate expenses incident to his change of official station. Both the employee and his wife, also a Federal employee, were transferred and their departments agreed to pay the transfer costs to their new duty station. Both the old and new residences were owned by a trust which had been established by the employee's mother-in-law. The trust paid all of the real estate expenses incurred in the sale and purchase of the two residences. In order to reimburse real estate expenses, title to the residences at the old and new stations must be in the name of the employee or that of one or more members of his immediate family, or in the joint names of the employee and one or more members of his immediate family. In this case, title to the residences involved was held by the trust and not by the employee or his immediate family. The purpose of the governing regulations is to reimburse transferred employees, but not to reimburse a third party, such as a trust. Accordingly, the employee was not entitled to reimbursement of the claimed real estate expenses.
B-197781, DECEMBER 30, 1980, 60 COMP.GEN. 141
OFFICERS AND EMPLOYEES - TRANSFERS - RELOCATION EXPENSES - REAL ESTATE EXPENSES - TITLE IN NAME OF TRUST EMPLOYEE OF INTERIOR DEPARTMENT WHO TRANSFERRED FROM RENO, NEVADA, TO ANCHORAGE, ALASKA, SEEKS REIMBURSEMENT OF REAL ESTATE EXPENSES INCURRED IN SALE AND PURCHASE OF RESIDENCES AT OLD AND NEW DUTY STATIONS. TITLE TO BOTH RESIDENCES WAS HELD IN NAME OF A TRUST ESTABLISHED BY LAST WILL AND TESTAMENT OF DECEASED MOTHER OF EMPLOYEE'S SPOUSE. SINCE TITLE TO RESIDENCES WAS HELD IN NAME OF TRUST WHICH PAID ALL EXPENSES OF REAL ESTATE TRANSACTIONS, TITLE REQUIREMENTS OF 5 U.S.C. 5724AA)(4)(1976) AND PARA. 2-6.1C OF FEDERAL TRAVEL REGULATIONS WERE NOT MET. THEREFORE, NO ENTITLEMENT TO REIMBURSEMENT EXISTS.
MATTER OF: ____________ - REAL ESTATE EXPENSES - TITLE REQUIREMENTS DECEMBER 30, 1980:
THIS DECISION IS IN RESPONSE TO A REQUEST FROM MS. MARY M. RYDQUIST, AUTHORIZED CERTIFYING OFFICER, BUREAU OF LAND MANAGEMENT, UNITED STATES DEPARTMENT OF THE INTERIOR, AS TO THE PROPRIETY OF REIMBURSING MR. ____________ FOR REAL ESTATE EXPENSES INCIDENT TO HIS CHANGE OF OFFICIAL STATION FROM RENO, NEVADA, TO ANCHORAGE, ALASKA, IN 1978.
THE PERTINENT FACTS AND CIRCUMSTANCES INVOLVED IN THIS CLAIM ARE AS FOLLOWS: MR. ____________ IS AN EMPLOYEE OF THE DEPARTMENT OF THE INTERIOR. HIS WIFE IS EMPLOYED BY THE UNITED STATES FOREST SERVICE, DEPARTMENT OF AGRICULTURE. BOTH WERE SELECTED TO FILL POSITIONS IN ALASKA AND THE TWO AGENCIES AGREED THAT THE INTERIOR DEPARTMENT WOULD PAY THE TRANSFER COSTS TO THEIR NEW DUTY STATION. THE CLAIMED EXPENSES INCURRED IN THE SALE OF THE RESIDENCE IN RENO TOTALED $8,307.50 AND $202.75 WAS INCURRED INCIDENT TO THE PURCHASE OF A RESIDENCE IN ANCHORAGE.
BY HER LAST WILL AND TESTAMENT, MS. ____________, DECEASED MOTHER OF MS. ____________, NOW THE WIFE OF MR. ____________, ESTABLISHED A TRUST WHICH IN ARTICLE IV THEREOF, DIRECTED HER EXECUTOR AND TRUSTEE TO PROVIDE HER DAUGHTER AND FAMILY WITH A RESIDENCE, INCLUDING THE SELLING OF ONE RESIDENCE AND REPLACING IT BY PURCHASING ANOTHER RESIDENCE. WHEN THE ____________ FAMILY TRANSFERRED TO ANCHORAGE, THE TRUST PAID ALL OF THE REAL ESTATE EXPENSES INCURRED IN THE SALE AND PURCHASE OF THE TWO RESIDENCES. THIS IS THE FIRST TIME THE TRUST HAS SOLD A RESIDENCE AND PURCHASED ANOTHER IN A TRANSFER INVOLVING THE FEDERAL GOVERNMENT. THE TITLE TO BOTH RESIDENCES IN RENO AND ANCHORAGE WAS AND IS IN THE NAME OF THE ____________ TRUST. MR. ____________ STATES THAT HE WILL REIMBURSE THE TRUST IF HE IS PAID THE CLAIMED REAL ESTATE EXPENSES BY THE DEPARTMENT OF THE INTERIOR.
THE STATUTORY AUTHORITY FOR REIMBURSING A FEDERAL EMPLOYEE FOR EXPENSES INCURRED IN THE SALE AND PURCHASE OF RESIDENCES AT HIS OLD AND NEW DUTY STATIONS IS CONTAINED IN 5 U.S.C. 5724AA)(4)(1976). THE IMPLEMENTING REGULATIONS SPELL OUT THE TITLE REQUIREMENTS FOR SUCH TRANSACTIONS. PARAGRAPH 2-6.1C OF THE FEDERAL TRAVEL REGULATIONS (FTR) (FPMR 101-7, MAY 1973) PROVIDES THAT, IN ORDER TO REIMBURSE REAL ESTATE EXPENSES, TITLE TO THE RESIDENCES AT THE OLD AND NEW OFFICIAL STATIONS "MUST BE IN THE NAME OF THE EMPLOYEE ALONE, OR IN THE JOINT NAMES OF THE EMPLOYEE AND ONE OR MORE MEMBERS OF HIS IMMEDIATE FAMILY, OR SOLELY IN THE NAME OF ONE OR MORE MEMBERS OF HIS IMMEDIATE FAMILY." PARAGRAPH 2-1.4D OF THE FTR (FPMR TEMPORARY REGULATION A-11, SUPPLEMENT 4, APRIL 29, 1977) DEFINES "IMMEDIATE FAMILY" ONLY IN TERMS OF A SPOUSE, CHILDREN, DEPENDENT PARENTS, AND DEPENDENT PARENTS, AND DEPENDENT BROTHERS AND SISTERS.
IN THE INSTANT CASE, TITLE TO THE RESIDENCES INVOLVED WAS HELD BY THE TRUST AND NOT BY MR. ____________, HIS WIFE, OR ANY MEMBER OF HIS IMMEDIATE FAMILY, AS REQUIRED BY THE FEDERAL TRAVEL REGULATIONS. WE VIEW THE PURPOSE OF THE STATUTE AND REGULATION AS BEING TO REIMBURSE THE TRANSFERRED EMPLOYEE FOR REAL ESTATE EXPENSES INCURRED BY HIM OR A MEMBER OF HIS IMMEDIATE FAMILY, BUT NOT TO REIMBURSE A THIRD PARTY, SUCH AS A TRUST, THAT HAS BORNE SUCH EXPENSES. ____________, B-192583, MARCH 14, 1979. SEE ALSO B-172244, JUNE 3, 1971.
ACCORDINGLY, SINCE THE CONDITIONS PRECEDENT RELATING TO THE TITLE TO THE PROPERTY IN QUESTION HAVE NOT BEEN MET, MR. ____________ IS NOT ENTITLED TO REIMBURSEMENT OF THE CLAIMED REAL ESTATE EXPENSES. THE VOUCHER SUBMITTED MAY NOT BE CERTIFIED FOR PAYMENT.