Claim for Real Estate Expenses

Prior to a transfer, a Social Security employee sold his residence, purchased a lot on which he intended to build a new home, and moved into rental quarters until his home could be built. He had paid a builder a deposit for preliminary house plans. When the employee was informed of his transfer, he sold the lot, incurring real estate expenses, and used the proceeds to purchase a residence at his new duty station. The employee filed a claim for the expenses incurred in selling the lot, as as well as for the deposit on the plans which he forfeited because of his transfer. He believed that he was entitled to the selling expenses, because he purchased the lot for his residence. GAO felt that the amount on deposit with the builder should be treated as a forefeiture loss which is reimbursable as a miscellaneous relocation expense. However, the employee was not entitled to real estate expenses for the sale of his lot at his old duty station, even though he intended to construct a residence on that lot before he was notified of his transfer. Such expenses are limited to the sale of a lot with a dwelling or a mobile home on it where the employee resided when he was first notifed of his transfer. Accordingly, payment was limited to the forfeited deposit, and the employee could not be reimbursed real estate expenses for the sale of the lot.