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Claim for Fee of Buyer's Agent Incident to Real Estate Purchase

B-184063 Jun 15, 1976
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Highlights

An advance decision was requested regarding the reimbursement of fees paid to a real estate broker to act as the buyer's agent in the purchase of a residence at the employee's new duty station. The portion of the fee paid for acting as the purchaser's agent during negotiations and final preparation of the earnest money agreement, negotiating the assumption of the mortgage, and negotiating with the bank to obtain the deed and clear title is not reimbursable since a broker's fee is not allowable for real estate purchases, and these services are customarily performed by real estate brokers. The portion of the fee attributable to notary fees, preliminary title search and opinion, and setting up an escrow account are reimbursable to the extent that they are costs which are separable from broker services and are otherwise allowable.

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