Martina Navratilova, formerly of Charlottesville and due in Washington for Slims action Jan. 3-10, will resettle in Virginia -- at least part-time -- in a Virginia Beach waterfront home being purchased for about $537,500, says her lawyer. Seller: Frank Batten, chairman of the firm that publishes Norfolk's daily newspapers. Navratilova's Texas confidant/trainer, Nancy Lieberman of basketball note, probably will come along, adds the tennis star's representative in the deal . . . Washington Area Tennis Patrons Foundation's annual awards luncheon: Dec. 15, Four Seasons Hotel. Awards to Pauline Betz Addie and D.C. National Junior Tennis League president, Doris Harrison.

In women's Australian Open in Melbourne, No. 3 seed Evonne Goolagong Cawley is gone, at Candy Reynolds' hands in third round, 2-6, 6-4, 7-5 . . . In Barcelona, another John McEnroe flap. Europe leading the Americas, 6 matches to 5, and Mac up on Ivan Lendl in the closer, 6-2, 5-0--only Lendl wins, seven straight games in set two, then 6-2. That gave the Europeans lions' share of purse, $400,000. What happened, amidst boos and shouts of "fraud"? Lendl told McEnroe during play that his (Lendl's) elbow hurt when he served. "He asked me if I wanted to retire," said the Czech. "I said I would carry on. He seemed to lose interest . . ."