Request for Reimbursement of Real Estate Expenses

An agency requested a determination from GAO as to whether an employee may be reimbursed real estate expenses incurred in connection with the sale of his residence at his former duty station, where he contracted to sell that residence after he had been notified that he was to be retransferred back to the former duty station. The employee's claim for real estate expenses associated with the sale of his former residence was submitted and paid. A claim for real estate expenses incurred in conjunction with the purchase of a new residence had not been paid. The agency requested a determination as to whether the employee should be required to reimburse the Government the real estate expenses paid which were associated with the sale of his former residence, based on a former GAO decision. In subsequent cases GAO has authorized reimbursement claims for transfer-related expenses once it has been determined that the transfer is in the interest of the Government. These include a number of related cases where relocation expenses, which were incurred in good faith during the time the transfer orders were in effect, were honored even though transfer orders were subsequently cancelled. GAO held that the Government has an obligation to reimburse real estate expenses, limited to the expenses already incurred and those which cannot be avoided, as in the case of an employee who's transfer is cancelled or who is transferred back to his former duty station. The agency was advised that the employee is not required to refund the reimbursement for sales expenses which he received from the Government, and he may be reimbursed for his purchase expenses.