Expenses of Sale of Residence in Anticipation of Transfer

A decision was requested in regard to a claim by a civilian employee of the Defense Property Disposal Service (DPDS) for reimbursement of real estate expenses incurred in anticipation of transfer. Sales expenses were disallowed by DPDS because the contract of sale was signed, and the employee moved into an apartment prior to actual notification of transfer. Military doctors' findings that the duty station environment was detrimental to the health of the employee's wife provided clear evidence of intention to transfer at the time the expenses were incurred. The residence to be sold was not vacated entirely until definite notice of transfer had been issued. Selling expenses may be paid subject to deduction of apartment lease expenses as reimbursement is permitted for only one transaction at the old duty station.