[Claim for Relocation Expenses Incurred Prior to Notification of Transfer]

An advance decision was requested as to whether a Department of Agriculture employee was entitled to real estate sales expenses incurred prior to a permanent change of station. When the employee heard that his program was scheduled for reorganization, he applied for several new positions, and a program manager advised the employee that he was trying to accommodate his request. In the meantime, the employee placed his home on the market, signed a sales agreement, and vacated the house to allow the prospective buyers to occupy the home. Consequently, the employee was not residing in the house which he sold on the date he was finally informed of his reassignment. The agency denied his claim for reimbursement on the basis that the sale was not related to his transfer, and he was not residing in the house for which he claimed reimbursement at the time he was officially notified of his change of station. GAO has held that reimbursement for the sale of a house is authorized only if there is an administrative intention to transfer the employee clearly evident at the time the real estate expenses are incurred. Furthermore, agencies have a broad discretion in deciding whether the sale or purchase of a home was incident to a transfer. GAO agreed with the agency that the sale of the employee's house was not incident to his transfer but based on the employee's presumption of a future transfer. Accordingly, the employee's claim for reimbursement of real estate expenses was denied.