Board of Contract Appeals General Services Administration Washington, D.C. 20405 _______________________________________________ November 8, 1999 _____________________________________________ GSBCA 15119-RELO In the Matter of JOSEPH G. DANG Joseph G. Dang, Keller, TX, Claimant. Rex Crosswhite and James D. Klutz, Real Estate Division, Office of Counsel, Army Corps of Engineers, Fort Worth, TX, appearing for Department of the Army. GOODMAN, Board Judge. Claimant, Joseph G. Dang, is a civilian employee of the Army Corps of Engineers. As the result of a permanent change of station, claimant purchased a home at his new duty station, Keller, Texas, on March 30, 1999. Claimant was authorized reimbursement for both his real estate transaction and miscellaneous expenses. Of the amounts sought for reimbursement, the agency denied reimbursement of $1525 paid for an owner s title insurance policy, $50 paid as a Federal Express fee, and $58 paid as a courier s fee. Claimant has requested that this Board review the agency s decision. Owner s Title Insurance Policy The Joint Travel Regulations (JTR), which implement for civilian employees of the Department of Defense (DOD) the provisions of the Federal Travel Regulation (FTR), have specific provisions regarding reimbursement of the costs of an owner s title insurance policy. Under the JTR, which is applicable to claimant as a DOD employee, this expense is reimbursable when a transferred employee purchases a new residence at the new duty station, provided certain conditions are met. The first is that the costs in question must be customarily paid by the buyer in the area where the residence is located and the amount paid must not be in excess of that customarily charged in that locality. The second condition is found in JTR C14002-A.4.a,.[foot #] 1 in which an owner s title insurance policy is listed as a reimbursable item with the following prerequisite: [O]wner's title insurance policy, provided it is a prerequisite to financing or the transfer of property; or the cost of the owner's title insurance policy is inseparable from the cost of other insurance, which is a prerequisite to financing or the transfer of property.[foot #] 2 JTR C14002-A..4.a(a). Additionally, the JTR state: Except as otherwise provided in subpar.a, the following items of expense are not reimbursable: (1) owner s title insurance policy JTR C14002-A.b(1). The first question we must answer in this case is whether the cost of the owner s title insurance policy is customarily paid by the seller in the claimant s area. If the cost is customarily paid, we must then determine whether the claimant's purchase of owner's title insurance was a prerequisite to financing or transfer of the property. We have previously stated that when questions of local custom arise, as in other matters, the burden is on the claimant to show why he or she should prevail. Board Rule 404(c) (48 CFR 6104.4(c) (1998)); Robert Messie, GSBCA 13807-RELO, 97-1 BCA 28,924; Christopher L. Cretien, GSBCA 13704-RELO, 97-1 BCA 28,701 (1996); Paul B. Garvey, GSBCA 13658-RELO, 97-1 BCA 28,690 (1996). Claimant has failed to meet this burden with regard to the first condition: he has provided no evidence as to whether an owner s title insurance policy is customarily paid by the buyer of a new residence in the locale in question. The agency states as follows: ----------- FOOTNOTE BEGINS --------- [foot #] 1 A similar provision appears in the FTR. See 41 ___ CFR 302-6.2(c) (1996) (FTR 302-6.2(c)). [foot #] 2 A corresponding provision can be found in FTR 302-6.2(d)(1)(ix). ----------- FOOTNOTE ENDS ----------- [Claimant] does not offer any evidence that either it was customary or required of him to pay the for the owner s title insurance policy before he could receive financing on his house purchase. A telephone discussion with [claimant s lender] indicated that the payment of the owner s title policy must be made, but who makes the payment is negotiable. . . . Since Keller, Texas is located in Tarrant County Texas, an inquiry was made to a local real estate association regarding who customarily pays for an Owner s Title Insurance Policy and the Corps of Engineers was referred to a local title company. The real estate association representative stated that title companies were more attuned to local custom in this matter and therefore should be consulted. A telephone call was made to Rattikin Title Company, the largest title company in Tarrant County, Texas, and the Corps of Engineers was advised that while the matter is negotiable, it is customary for the seller to pay for an Owner s Title Insurance Policy at closing. . . . In addition, an informal telephone conference call was made with the Fort Worth, Tarrant County, Texas, office of the Department of Housing and Urban Development (HUD) as to the customary practices regarding payment of the Owner s Title Insurance Policy. . . . The HUD office advised the Corps of Engineers that, in Tarrant County, Texas, it is customary for the seller to pay for the Owner s Title Insurance Policy, even though the matter may be negotiated between the buyer and seller. . . . Based upon information submitted by the local real estate association, a local title company, and the Fort Worth, Texas HUD office, Respondent submits that [claimant s ] payment of the Owner s Title Insurance Policy was not in accordance with local custom, and therefore, was not a reimbursable cost. Accordingly, as there has been no showing that the buyer customarily pays the cost of the owner s title insurance policy in the locale in question, claimant is not entitled to reimbursement for the cost of the policy. Federal Express and Courier Fees Claimant also seeks reimbursement of $50 paid as a Federal Express fee and $58 paid as a courier s fee. The agency responds that it does not contest [claimant s] right to receive reimbursement for [these amounts] as Miscellaneous expenses. Accordingly, the agency may reimburse claimant for these fees as miscellaneous expenses. _______________________ ALLAN H. GOODMAN Board Judge