[Claim for Real Estate Expenses Incident to Transfer]

The Farmers Home Administration (FHmA) requested an advance decision concerning an employee's claim for costs of a real estate commission in connection with the sale of his residence pursuant to a permanent change of station. The employee had discussed the matter with his director and was told that he should list his house under an open listing with both local real estate agencies. FHmA limited reimbursement for the broker's fee to 6 percent of the sales price; however, the employee submitted a reclaim voucher for the remainder of the 10-percent brokerage fee he paid. GAO has held that: (1) regulations specifically limit reimbursement for brokerage fees to the prevailing rate in the area and not the rate the broker charges; and (2) a transferred employee may be reimbursed for the cost of multiple listing services provided that he has not paid for the cost of such service in the form of a broker's fee. GAO found that, although the 6-percent rate is customary for the area, since the employee was forced into a multiple listing, he was entitled to reimbursement at the 7-percent rate. Accordingly, the employee may be reimbursed up to a 7-percent brokerage fee.