Claim for Brokerage Fees and Prepayment Charges Incurred in Alleged Sale of Residence

B-193004: Apr 10, 1979

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The Army requested an advance decision concerning the claim of a civilian employee for brokerage fees and prepayment charges on his residence as a result of his transfer. The employee entered into a lease-purchase agreement to buy real estate, but he never exercised his option to buy the property and did not hold title to the property at the date he entered into a contract to sell it. He did not incur lease cancellation costs, and the record does not show that he actually conveyed the property pursuant to the lease-purchase agreement. Since the sale-and-purchase contract did not convey legal title, expenses for the real estate sale may not be reimbursed.