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Claim for Real Estate Expenses

B-205550 Mar 11, 1982
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Highlights

A claim was submitted for reimbursement of an additional 1-percent real estate broker's fee. In a travel authorization, the claimant was given a permanent change of station. To expedite the sale of his home, the claimant increased the sales commission from the standard 6 percent to 8 percent and the house was sold. The Department of Agriculture (USDA) informally sought an inquiry from the Department of Housing and Urban Development (HUD) and was informed that the customary real estate commission charged by brokers in that area was 6 to 7 percent. USDA certified payment for a 7-percent commission, but refused to pay the remaining 1-percent commission. GAO held that, where an employee sells a home incident to a permanent change of station, he may not be reimbursed for a real estate broker's commission above the average rate in the general area determined by HUD even where the higher commission was needed to expedite the sale. Statutory provisions and implementing regulations require that the applicable commission rate be the rate generally and customarily charged in the locality, and the information provided by HUD creates a rebuttable presumption regarding the prevailing commission rate. The employee failed to rebut this presumption. Accordingly, the voucher was not certified for payment.

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