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B-194668 1 (1979-09-17)

handle is hein.gao/gaobadhpp0001 and id is 1 raw text is: 




DECISIDN


p  THE  COMPTROLLER GENERAL
.  OF   THE UNITED STATES
   VAASHINGTON, D.C. 20548


   FIE: B-l94668E   B'T''       9.X DATE:                 _t~ 7 979

MATTER OF: Alvin A. West -( Condominium review fee 4 44//?vne'J   7 -i7e.


DIGEST:


Employee who purchased condominium incident to
permanent change of station may not be reimbursed for
the cost of owner's title insurance. He may be reim-
bursed $200 condominium review fee paid to the mort-
gage company for its attorney's review of condominium
documents required for financing purposes. Although
there is no definite custom in local area as to whether
purchaser or seller pays the fee, record does not show
that payment agreement was other than bona fide and
amount does not exceed fee customarily paid in local
area.


     This decision responds to the request of Lena M. Jones,
Authorized Certifying Officer, Department of Housing and Urban
Development (HUD), for an advance decision concerning-reimbursement
for the cost of an owner's title insurance policy and a condominium
review fee.  Mr. Alvin A. West, a HUD employee, has submitted a
reclaim voucher for reimbursement of these expenses incurred in
connection with the purchase of a condominium in Rockville, Maryland,
incident to his permanent change of duty station.

     The settlement statement issued in connection with Mr. West's
purchase of a condominium on November 22, 1978, indicates that he
paid $159 for a lender's title insurance policy and $164.50 for an
owner's title insurance policy. We assume that Mr. West has been
reimbursed the cost of the lender's policy under para. 2-6.2d of the
Federal Travel Regulations (FTR)(FPIMR 101-7). That paragraph pro-
vides for reimbursement of the cost of a mortgage title insurance
policy paid for by the employee as the purchaser of a residence, but
specifically precludes reimbursement for other types of insurance
paid for by him, such as an owner's title policy. Except where its
purchase is required by law, an owner's title policy is one which
the purchaser of a residence obtains for his own protection. As
such, it is regarded as a nonreimbursable personal expense incurred
at his election and not necessary to consummation of the real estate
transaction.  55 Comp. Gen. 779 (1976) and B-186579, October 26, 1977.
In the absence of any documentation to suggest that the lender's and
the owner's title insurance policies were purchased as a part of a
single transaction with a disproportionately large share of the cost


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