B-174022, DEC 28, 1971

B-174022: Dec 28, 1971

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HENDRIX: REFERENCE IS MADE TO YOUR LETTER OF AUGUST 30. TO THE EFFECT THAT THE PREVAILING REAL ESTATE COMMISSION RATE ON THE SALE OF USED HOMES IN COLORADO SPRINGS FOR THE FIRST HALF OF 1971 WAS 7 PERCENT. REQUIRE THAT THE ALLOWABLE BROKER'S COMMISSION RATE BE THE SAME AS THAT WHICH IS CUSTOMARILY PAID IN THE AREA WHERE THE RESIDENCE IS LOCATED. THE VOUCHER WHICH IS RETURNED HEREWITH MAY BE CERTIFIED FOR PAYMENT IF OTHERWISE CORRECT.

B-174022, DEC 28, 1971

TO MISS EVELYN C. HENDRIX:

REFERENCE IS MADE TO YOUR LETTER OF AUGUST 30, 1971, WHEREIN YOU REQUEST OUR ADVANCE DECISION AS TO THE PROPRIETY OF CERTIFYING FOR PAYMENT THE RECLAIM VOUCHER OF MR. MERVEL E. COIL, AN EMPLOYEE OF THE INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY, FOR REIMBURSEMENT OF AN ADDITIONAL EXPENSE INCURRED IN CONNECTION WITH A CHANGE OF HIS OFFICIAL DUTY STATION FROM COLORADO SPRINGS, COLORADO, TO WICHITA, KANSAS.

THE RECLAIM VOUCHER IN THE AMOUNT OF $317 REPRESENTS THE DIFFERENCE BETWEEN A 6 PERCENT BROKER'S COMMISSION ON THE SALE OF HIS RESIDENCE IN COLORADO, WHICH YOU ALLOWED, AND A 7 PERCENT BROKER'S COMMISSION WHICH MR. COIL ORIGINALLY CLAIMED.

THE RECORD SHOWS THAT THE PURCHASE AND SALE AGREEMENT OF MARCH 25, 1971, DID NOT STIPULATE THE AMOUNT TO BE PAID BY MR. COIL AS A BROKER'S COMMISSION. HOWEVER, THE SELLER'S CLOSING STATEMENT OF JUNE 2, 1971, INDICATES THAT MR. COIL ACTUALLY PAID 7 PERCENT OF THE SALE PRICE OF HIS RESIDENCE AS A BROKER'S COMMISSION. THE RECORD ALSO CONTAINS A STATEMENT BY MR. JOE M. BEAN, THE REALTOR, TO THE EFFECT THAT THE PREVAILING REAL ESTATE COMMISSION RATE ON THE SALE OF USED HOMES IN COLORADO SPRINGS FOR THE FIRST HALF OF 1971 WAS 7 PERCENT. HE INDICATES THAT 53 PERCENT OF THE HOUSES SOLD DURING THAT PERIOD IN COLORADO SPRINGS BROUGHT A COMMISSION OF 7 PERCENT. IN A LETTER, DATED NOVEMBER 22, 1971, THE FEDERAL HOUSING ADMINISTRATION, DENVER, COLORADO, INFORMED US THAT THE REAL ESTATE BROKER'S COMMISSION FOR THE STATE OF COLORADO RANGED BETWEEN 6 PERCENT AND 7 PERCENT DURING THE PERIOD COVERING MARCH 25, 1971.

5 U.S.C. 5724AA)(4) AND SECTION 4.2A OF OFFICE OF MANAGEMENT AND BUDGET CIRCULAR NO. A-56, REVISED JUNE 26, 1969, REQUIRE THAT THE ALLOWABLE BROKER'S COMMISSION RATE BE THE SAME AS THAT WHICH IS CUSTOMARILY PAID IN THE AREA WHERE THE RESIDENCE IS LOCATED. SEE ALSO B-165200, SEPTEMBER 23, 1968, COPY ENCLOSED.

IN LIGHT OF THE FOREGOING AND SINCE MR. COIL ACTUALLY PAID 7 PERCENT, SUCH RATE MAY BE REGARDED AS THAT CUSTOMARILY PAID IN COLORADO SPRINGS, COLORADO, AT THE TIME INVOLVED.

THE VOUCHER WHICH IS RETURNED HEREWITH MAY BE CERTIFIED FOR PAYMENT IF OTHERWISE CORRECT.