Reimbursement for Real Estate Expenses

An employee of the Department of the Air Force requested reconsideration of a previous decision which denied his claim for real estate expenses. Unable to sell his home after being transferred, the employee deeded it back to the mortgagee. He claimed he was entitled to $3,434 because if he had sold his house at the appraised value, the 6 percent broker's fee along with the legal expenses would have totaled that amount. GAO held that the employee was not entitled to broker's fee and legal expenses he would have incurred had he sold his house. Nor could he be reimbursed for the difference between purchase price and the amount of outstanding mortgage loan. Reimbursement is authorized only for expenses which an employee actually incurs. Reimbursement for losses due to failure to sell a residence is specifically prohibited by law. Thus the employee's claim could not be allowed. The settlement of GAO Claims Division was affirmed.