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B-204915 1 (1982-01-15)

handle is hein.gao/gaobadkac0001 and id is 1 raw text is: 

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-7I- SO
  DECISION


THE CCMPTR3LVIR
OF THE UNITEC.


WINERAL
STATEB


WAS HINW TON, .D,0o, 20548


FILE;


B-204915


MATTER OF;


DATE;


Peter D,
expenses


January 15, 1982


Pendergast - Lease termination
- Option to purchase


   DIGEST:    Employee who entered Snto a lease/puirchase
              agreement and resided in a house at hib od
              duty station for 12 months is not entitled
              to reimbursemepnt of the money paid on the
              * lease when he relocates prior to exercising
              his option to purchase.  The provisions of
              5 US,.C § 5724a(a)(4), do not allow reim-
              bursement when no purchase, that is, no
              grant of equitable or legal title, ha
              occurred.  Further, in the absence of any
              exercise of the option, the claimant has
              Snot forfeited the money. Thus, reimburse-
              ment may not be made under provisions of
              the Federal Travel Regulations, para. 2-3.1,
              which allows reimbursement for miscellaneous
              expenses.

      Ms. Anita R. Smith, Authorized Certifyj~ng Officer,
 United States Department of Agriculture, requests an ad-
 vance decision as to whether reimbursement may be mtde for
 relocation expenses incurred by Mr. Peter D. Pendergist,
 an employee of the Food and Nutrition Service, itcurred
 when he entered into a lease with an option to purchase
 a residence at his former duty station.

     The issue to be decided in this case is whether, under
5 U.S.C. § 5724a(a)(4) (1976), money paid on a lease with
an option to purchase constitutes a reimbursable relocation
expense incurred in a real estate trant ction when the claim-
ant relocates prior to exercising the option to purchase.
Based on the cited statutory provision as implemented by the
Federal Travel Regulations (FTR) (FPNR 101-7, May 1973), we
have determined that payment is not authorized.

     On December 30, 1980, by Travel Authorization Number
1-307-04, Mr. Pendergast was authorized a permanent change
of station from Robbinsville, New Jersey, to Burlington,
Massachusetts.  In February 1980, Mr. Pendergast entered into
a lease/purchase agreement for a residence in Willingboro,
New Jersey. The temns of the lease gave Mr. Pendergast the


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